Shoe Carnival’s Sales Up 5.3% in Q4

Shoe Carnival, Inc reported net sales for the fourth quarter of fiscal 2010 increased 5.3% to $179.9 million from $170.8 million in the fourth quarter of 2009. Comparable store sales increased 4.6%.

Net earnings for the fourth quarter increased 70% to $4.4 million, or 33 cents per diluted share, from net earnings of $2.6 million, or 20 cents per diluted share in the fourth quarter of last year.

Selling, general and administrative expenses for the fourth quarter increased $2.5 million to $47.0 million. As a percentage of sales, these expenses were unchanged from the fourth quarter of fiscal 2009.

Fiscal 2010 Results

Net sales increased 8.3% to $739.2 million for fiscal 2010 from $682.4 million in fiscal 2009. Comparable store sales increased 8.2% for the 52-week period.

Net earnings for fiscal 2010 increased 77% to $26.8 million, or $2.05 per diluted share, from net earnings of $15.2 million, or $1.20 per diluted share, for fiscal 2009.

Speaking on the results, Mark Lemond, chief executive officer and president, said, “We are extremely pleased to report that our 4.6% increase in comparable store sales for the quarter, combined with higher gross profit margins and controlled expenses, produced the second highest fourth quarter earnings in the company’s history. Following record results in the first three quarters, our fourth quarter performance enabled us to generate record comparable store sales and earnings for the full fiscal year.”

Lemond continued, “In fiscal 2010, we were able to take advantage of increased consumer demand for footwear, particularly in sandals, boots and toning footwear. Our consistent financial performance gives us the confidence to remain optimistic about our fiscal 2011 outlook, despite the fact that we are up against difficult comparisons. We believe our business model of providing the right product assortment for the entire family, at a compelling value, is especially effective in this current economic environment. Combined with increased store growth and our management team’s consistent focus on managing the controllable aspects of our business, we are confident that this business model will continue to generate long-term profitable growth and free cash flow.”

First Quarter Fiscal 2011 EPS Outlook

Earnings per diluted share in the first quarter of fiscal 2011 are expected to be in the range of $0.72 to $0.75. This increase assumes net sales in the range of $198 to $201 million and a comparable store sales increase of 3 to 5 percent.

Store Growth

During fiscal 2010, the company opened ten new stores and closed seven stores to end the year at 314 stores. No stores were opened in the fourth quarter and two were closed. Total retail selling space remains at 3.4 million square feet.

Store openings and closings by quarter and for the fiscal year are as follows: