Shoe Carnival, Inc. reported sales for the fourth quarter increased 8.8% to $170.8 million from $156.9 million a year ago on an 8.8% comp gain. Net earnings reached $2.6
million, or 20 cents per diluted share, compared to a net loss of $3.0 million,
or 24 cents, a year ago.
The gross profit margin for the fourth quarter of fiscal 2009
increased
to 28.7 percent compared to 24.7 percent for the fourth quarter of
2008.
The merchandise margin increased 2.8 percent primarily as a result
of
improved inventory management resulting in less promotional
selling
along with strong sales of boots and athletic footwear. Buying,
distribution and occupancy expenses, as a percentage of sales,
decreased
1.2 percent through a combination of higher sales and lower
expenses for
the quarter.
Selling, general and administrative expenses for the fourth
quarter
increased $940,000 to $44.5 million. As a percentage of sales,
these
expenses decreased to 26.1 percent from 27.8 percent in the fourth
quarter of fiscal 2008 due to the leveraging effect of higher
sales.
Fiscal 2009 Results
Net sales increased 5.4 percent to $682.4 million for fiscal 2009,
compared to net sales of $647.6 million last year. Comparable
store
sales increased 3.5 percent for the 52-week period.
Net earnings for fiscal 2009 were $15.2 million, or $1.20 per
diluted
share, compared to net earnings of $5.3 million, or $0.43 per
diluted
share, for fiscal 2008.
Speaking on the results, Mark Lemond, chief executive officer and
president said, “We are extremely pleased to report, that despite
the
economic challenges in fiscal 2009, we achieved better than
expected
results for the fourth quarter of fiscal 2009. Our 8.8 percent
comparable store sales increase was significantly above our
expectations
with each broad product category of footwear and most of our
operations
regions delivering a comparable store sales increase for the
fourth
quarter as compared to the prior year.”
Mr. Lemond continued, “The momentum we realized in the second half
of
fiscal 2009 has continued into the beginning of the first quarter
of
fiscal 2010 and we are very optimistic about our outlook for the
spring
selling season. Our management team remains intently focused on
our
strategy to raise the net realized price of our footwear, maintain
lean
and fresh inventories, and increase our free cash flow
generation.”
First Quarter Fiscal 2010 EPS Outlook
Earnings per diluted share in the first quarter of fiscal 2010 are
expected to be in the range of $0.54 to $0.58. This increase
assumes net
sales in the range of $181 to $183 million and a comparable store
sales
increase of 8 to 9 percent.
Store Growth
During fiscal 2009, 16 new stores were opened and nine were closed
to
end the year at 311 stores. No stores were opened in the fourth
quarter
and six were closed. On a net basis, selling space increased
37,000
square feet during fiscal 2009 bringing total retail selling space
to
3.4 million square feet.
Store openings and closings by quarter and for the fiscal year are
as
follows:
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New Stores |
Stores Closed |
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1st Quarter 2009 |
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10 |
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1 |
2nd Quarter 2009 |
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2 |
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1 |
3rd Quarter 2009 |
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4 |
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1 |
4th Quarter 2009 |
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0 |
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6 |
Fiscal 2009 |
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16 |
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9 |
In fiscal 2010, we expect to open approximately 10 to 15 stores,
three
of which are expected to open in the first quarter. We expect to
close
approximately 10 to 13 stores during the fiscal year.
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SHOE CARNIVAL, INC. |
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CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
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Thirteen |
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Thirteen |
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Fifty-two |
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Fifty-two |
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Weeks Ended |
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Weeks Ended |
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Weeks Ended |
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Weeks Ended |
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Net sales |
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$ |
170,790 |
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$ |
156,910 |
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$ |
682,422 |
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