Shoe Carnival didnt let a little thing like soft comps hold back their hard-charging ways. Even though sales were soft for the quarter, profits soared 44% in Q4.
SCVL same-store sales were down 3.9% for Q4 and dipped 0.4% for the year. Comp sales were up 6.6% in Q4 2001 and up 3% for full-year 2001.

In the quarter, comps in Women’s dress/casual footwear rose low single digits, but Men’s dress/casual footwear was down in the mid singles. Kids footwear and Boots were both down double digits in Q4.

Athletic footwear was down low singles, with weakness in walking and women’s running.

Comparable store sales worsened throughout Q4, with November showing flat comps, December down 3% and January dipping further, down 10%.

SG&A for the fourth quarter, as a percentage of sales, increased 70 bps to 24.7%, with increased expenses in higher marketing costs and de-leveraging the effect of the negative comps.

Total inventories at year-end 2002 were up 7.7% on 14% square footage growth but down 5% on a per store basis.
A category sales breakdown for 2002 revealed that 25% of the business is in women’s dress/casual, 16% in men’s dress/casual, 16% in kids, 4% in accessories and 39% in athletic footwear. 

Gross Profit improvement was due to 170 basis point increase in merchandise margin, but offset by 60 bps increase in buying and distribution costs.

The company opened 25 new stores to end the year with 207 stores. Management will accelerate new store growth in 2003, opening approximately 40 new stores.

First quarter 2003 is expected to see sales increases of 10% to 12%, with comps flat to down 2%. Gross Margin is expected to be flat to up slightly.


>>> Strong fiscal controls keep this value retailer on top for the quarter…