Shoe Carnival, Inc. reported net sales reached $235.8 million for the third quarter ended Nov. 2, compared to $244.4 million for the third quarter ended Oct. 27, 2012. Comparable store sales for the most recent 13-week period increased 0.7 percent as compared to the 13-week period ended Nov. 3, 2012.
The gross profit margin for the third quarter of fiscal 2013 decreased to 30.1 percent compared to 31.3 percent for the third quarter of fiscal 2012. The merchandise margin remained unchanged while buying, distribution and occupancy expenses increased 1.2 percent as a percentage of sales. The deleveraging of occupancy expenses was primarily attributable to the shift in the fiscal calendar.
Net sales during the first nine months of fiscal 2013 increased $35.2 million to $684.5 million as compared to the same period last year. Comparable store sales for the thirty-nine week period ended Nov. 2, 2013 increased 0.7 percent as compared to the 39-week period ended Nov. 3, 2012. Net earnings for the first nine months of fiscal 2013 were $26.3 million, or $1.29 per diluted share, compared to net earnings of $26.1 million, or $1.28 per diluted share, in the first nine months of last year. The gross profit margin for the first nine months of fiscal 2013 was 29.5 percent compared to 30.4 percent last year. Selling, general and administrative expenses, as a percentage of sales, were 23.3 percent for the first nine months of fiscal 2013 compared to 23.7 percent last year. The company opened 29 stores during the first nine months of fiscal 2013 as compared to opening 30 stores during the first nine months of last year.
“As more seasonable fall weather continued in November, sales of our fall footwear, particularly boots, increased,” said Sifford. “These favorable weather patterns along with our strong Thanksgiving promotional offering led to a comparable store sales increase for Nov. of 7.8 percent. We believe we are well positioned to continue our positive sales trend throughout the remainder of the holiday season which would result in improved year-over-year financial results.”
Fourth quarter fiscal 2013 earnings outlook
The company expects fourth quarter net sales to be in the range of $215 million to $219 million with a comparable store sales increase in the range of 4.0 to 6.0 percent. Earnings per diluted share in the fourth quarter of fiscal 2013 are expected to be in the range of $0.18 to $0.22. In the 14-week fourth quarter of fiscal 2012, total net sales were $205.7 million, comparable store sales increased 0.5 percent and the company earned $0.13 per diluted share. Earnings per diluted share for the fourth quarter of fiscal 2012 included a $0.03 reduction due to the application of the two-class method of computing earnings per share in connection with the company’s $20.4 million special cash dividend paid in December 2012.
The company has opened all 32 of their fiscal 2013 new stores at this time and expects to close five additional stores in the fourth quarter for a total of seven store closings for fiscal 2013. Store openings and closings by quarter are as follows:
|New Stores||Store Closings|
|1st quarter 2013||13||0|
|2nd quarter 2013||8||2|
|3rd quarter 2013||8||0|
|4th quarter 2013||3||5|
|Fiscal year 2013||32||7|
The eight new stores opened during the third quarter include locations in:
|City||Market||Total Stores in the Market|
|Fajardo, PR||Puerto Rico||6|
|Fort Worth, TX||Dallas||8|
|Grand Island, NE||Lincoln||1|
|Guaynabo, PR||Puerto Rico||6|
SHOE CARNIVAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share)
|Weeks Ended||Weeks Ended||Weeks Ended||Weeks Ended|
|November 2, 2013||October 27, 2012||November 2, 2013||October 27, 2012|
|Cost of sales (including buying,|
|distribution and occupancy costs)||164,759||167,999||482,339||451,951|
|Selling, general and administrative|
|Income before income taxes||17,777||20,495||42,495||43,055|
|Income tax expense||6,861||8,247||16,222||16,928|
|Net income per share:|