Shoe Carnival, Inc. reported sales of $189.1 million for the thirteen-week period ended October 28, 2006 compared to sales of $182.7 million for the thirteen-week period ended October 29, 2005. Comparable store sales increased 2.9 percent for the third quarter of 2006.

Commenting on sales, Mark Lemond, president and chief executive officer, stated “Third quarter sales were above our expectations and resulted from continued strength in our dress and casual categories. Our 2.9 percent comparable store sales increase for the quarter was significant given that we achieved an 8.3 percent comparable store sales increase in the third quarter last year.”

Sales for the first nine months of 2006 increased 2.5 percent to $504.4 million from sales of $492.1 million for the first nine months of 2005. Comparable store sales increased 2.3 percent for the thirty-nine week period.

Based on the third quarter sales results, the Company increased its diluted earnings per share expectations to $0.60 or $0.61 for the third quarter of 2006. The Company also announced the opening of eight stores and closed three during the third quarter.