Shoe Carnival, Inc. said fourth-quarter earnings came in at the low-end of guidance due to below-plan results in the last two weeks of the quarter. The family shoe chain the shortfall came primarily in athletic sales, which it believes was due to colder weather and, more importantly, the delay in income tax refunds.
Net sales for the 14-week fourth quarter ended Feb. 2, 2013 increased 13.1 percent to $205.7 million compared to net sales of $181.9 million in the 13-week fourth quarter ended Jan. 28, 2012. Sales of approximately $10.7 million were recorded in the extra week of fiscal 2012. Comparable store sales for the 13-week period ended Jan. 26, 2013 increased 0.5 percent compared to the 13-week period ended Jan. 28, 2012.
Net sales for fiscal 2012 increased 12.1 percent to $855.0 million, compared to net sales of $762.5 million for fiscal 2011. Comparable store sales for the fiscal 52-week period ended January 26, 2013 increased 4.5 percent compared to the 52-week period ended Jan. 28, 2012.
Although the year-end audit is not complete, the company expects to report net earnings for the fourth quarter of fiscal 2012 of $3.2 million, or 16 cents in adjusted earnings per diluted share, as compared to net earnings of $3.3 million, or 16 cents per diluted share for the fourth quarter of fiscal 2011. Earnings per diluted share for the fourth quarter of fiscal 2012, computed in accordance with GAAP, are anticipated to be 13 cents.
In mid-January, Shoe Carnival had predicted that EPS would be in the range of 20 to 22 cents a share. Sales were expected to range between $212 million and $214 million.
Net earnings for fiscal 2012 are now expected to be $29.3 million, or $1.43 per diluted share, compared to net earnings of $26.4 million, or $1.31 per diluted share reported in fiscal 2011. In mid-January, it had projected earnings between $1.48 and $1.50 on sales in the range of $861 to $863 million.
While the Companys payment of a $20.4 million special cash dividend in December 2012 had no effect on fourth quarter or annual net income or annual diluted earnings per share, the expected results for the fourth quarter of fiscal 2012 include a 3 cents a share reduction in earnings per diluted share due to the application of the two-class method of computing earnings per share in connection with this dividend.
Cliff Sifford, President and CEO, stated, We are pleased to report that our unaudited sales and earnings for fiscal 2012 are the highest in the companys history. Our 4.5 percent comparable store sales increase for the year was driven by athletic footwear along with mens and childrens dress and casual footwear. In addition, we accelerated our store growth by opening 31 stores including market entries into Dallas, Texas with 7 stores and Puerto Rico with 4 stores.
While we achieved record results for the fiscal year, our fourth quarter sales and earnings fell short of our previous guidance. At the low-end of our guidance issued in mid-January, we anticipated a mid-single digit decline in comparable store sales during the last two weeks of the quarter. Actual results for those two weeks included a decline in comparable store sales of 27 percent for a loss of approximately $7 million in sales against our expectations. This sales decline accounted for the entire shortfall in our earnings guidance for the fourth quarter.
Sifford continued, The decline was primarily in athletic sales, which we believe was a result of colder weather and, more importantly, the delay in income tax refunds. For the past several years, we have brought in our spring athletic receipts earlier to take advantage of the strong demand for athletic footwear in late January and throughout February. Our weakness in sales continued into the early part of February, but rebounded sharply, particularly in athletic footwear, when the income tax refunds started reaching our customers. For the month of February 2013, our comparable store sales increased low single digits.
Full results are due on April 1.
