19 May Shoe Carnival Q1 Comps Gain 2.7 Percent
Shoe Carnival Inc. reported earnings nudged up 2.5 percent to $10.7 million, or 56 cents a share, just below Wall Street’s consensus estimate of 57 cents a share.
First Quarter Highlights
Net sales increased $7.7 million to a first quarter record of $260.5 million
Comparable store sales increased 2.7 percent in the first quarter of fiscal 2016, the seventh consecutive quarterly increase
Earnings per diluted share increased 7.7 percent to a first quarter record of $0.56
Repurchased 70,330 shares of common stock at a total cost of $1.6 million under share repurchase program
“We are pleased with our start to fiscal 2016 as we continue to benefit from our multi-channel sales initiative,” stated Cliff Sifford, Shoe Carnival’s President and CEO. “Our record first quarter sales and diluted earnings per share were driven by continued strength in athletic footwear for the entire family and tight expense control. Unseasonably warm temperatures helped drive sales early in the quarter, and though cold weather did impact our Easter holiday performance, we generated positive momentum late in the quarter when more seasonal conditions returned. As we enter the second quarter, we expect to further benefit from our assortment of sandalized footwear as warmer weather arrives in addition to the continued strength in athletic footwear.”
First Quarter Financial Results
The company reported net sales of $260.5 million for the first quarter of fiscal 2016, a 3.0 percent increase compared to net sales of $252.8 million for the first quarter of fiscal 2015. Comparable store sales increased 2.7 percent in the first quarter of fiscal 2016.
The gross profit margin for the first quarter of fiscal 2016 decreased to 29.0 percent compared to 29.5 percent in the first quarter of fiscal 2015. The merchandise margin decreased 0.9 percent. Buying, distribution and occupancy expenses decreased 0.4 percent as a percentage of sales.
Selling, general and administrative expenses for the first quarter of fiscal 2016 increased $0.6 million to $58.3 million. As a percentage of sales, these expenses decreased to 22.4 percent compared to 22.8 percent in the first quarter of fiscal 2015.
The company opened three new stores in the first quarter of fiscal 2016 compared to seven new stores in the first quarter of fiscal 2015.
Net earnings for the first quarter of fiscal 2016 were $10.7 million, or $0.56 per diluted share. For the first quarter of fiscal 2015, the company reported net earnings of $10.4 million, or $0.52 per diluted share.
Fiscal 2016 Earnings Outlook
The company is reiterating its fiscal 2016 outlook for net sales to be in the range of $1.007 billion to $1.027 billion, with a comparable store sales increase in the range of 1.0 percent to 3.0 percent. Earnings per diluted share for the fiscal year are expected to be in the range of $1.58 to $1.65. This represents an increase of 9 percent to 14 percent over fiscal 2015 earnings per diluted share of $1.45.
Store Growth
The company expects to open approximately 20 stores, including six small-market stores, and close approximately ten stores in fiscal 2016.