Shoe Carnival sales for the four-week period ended November 1, 2003, decreased 0.6 percent to $37.7 million from sales of $37.9 million for the four-week period ended November 2, 2002. Comparable store sales decreased 9.0 percent in October 2003. Comparable store sales in October 2002 increased 13.7 percent.
Mark L. Lemond, president and chief executive officer commented, “As anticipated, we experienced negative comparable store sales in October due to the difficult comparison with October 2002 sales, which rose 13.7 percent. The prior year comparable store sales increase was driven by promotional selling and near perfect weather conditions for selling fall product. This year we chose not to repeat certain promotions, which hindered our sales performance for October but resulted in a higher gross profit margin. Additionally, unseasonably warm weather in October 2003 negatively affected the sale of fall merchandise.
“Despite the sales decline in October, our inventories remain lean and well positioned for fall. We now estimate earnings for the third quarter to be approximately $0.42 per share, which represents about a 10 percent increase in earnings per share over the third quarter of 2002. Included in the earnings estimate for the third quarter is a pretax charge of approximately $330,000 for the closing of two stores and relocation of one store.”
Sales for the 13-week third quarter increased 10.6 percent to $152.4 million from sales of $137.7 million for the 13-week quarter ended November 2, 2002. Comparable store sales increased 0.3 percent for the 13-week period.
Sales for the first nine months of 2003 increased 8.2 percent to $423.7 million from sales of $391.7 million for the first nine months of 2002. Comparable store sales decreased 2.6 percent for the 39-week period.
The Company also announced the opening of six stores in October, two in Huntsville, AL and one each in Colorado Springs, CO; Savannah, GA; Calumet Park, IL (Chicago market) and Moore, OK (Oklahoma City market). One store was closed during the month and one store in Plainfield, IN was relocated. During the third quarter, the Company opened 11 stores, closed 2 and relocated one store. Two additional stores will open in the fourth quarter of 2003, one of which opened in the first week of November.
