Shoe Carnival, Inc. reported that sales for the month of December, 2005 increased 12.8% to $72.5 million from sales of $64.3 million for the five-week period ended January 1, 2005. Comparable store sales increased 10.6% in December 2005.

Sales for the first eleven months of 2005 increased 10.9 percent to $616.6 million from sales of $555.8 million for the first eleven months of 2004. Comparable store sales increased 6.6 percent for the 48-week period.

The Company also announced the closing of two stores during the month.

Beginning in fiscal 2006, Shoe Carnival will no longer report sales information on a monthly basis, but will convert to quarterly sales reporting. The first quarter sales of fiscal 2006 (February, March, and April) will be released after the first quarter ends.