Company Exceeds Quarterly Net Sales, Comparable Store Sales and
Earnings per Share Guidance
Company Declares Quarterly Cash Dividend
EVANSVILLE, Ind.--(BUSINESS WIRE)--Mar. 18, 2015--
Shoe Carnival, Inc. (Nasdaq: SCVL) a leading retailer of moderately
priced footwear and accessories, today reported results for the fourth
quarter and fiscal year ended January 31, 2015.
Fourth Quarter Highlights
-
Net sales increased $27.3 million to $227.6 million, compared to the
fourth quarter of fiscal 2013
-
Comparable store sales increased 9.5 percent in the fourth quarter of
fiscal 2014, exceeded the Company’s guidance for the quarter
-
Earnings per diluted share were $0.15, exceeded the Company’s guidance
for the quarter
-
Per-store inventories were down 5.0 percent at the end of the quarter,
compared to the fourth quarter of fiscal 2013
“We were pleased with our strong comparable store sales performance in
the fourth quarter driven by broad based gains across all of our
footwear categories. Although favorable weather played an important role
in our strong performance, we believe our key initiatives of national
advertising, better brands in our women’s department and aggressive
multi-channel initiatives continued to bring new customers to our
stores, e-commerce site, and mobile touchpoints,” commented Cliff
Sifford, President and CEO.
Fourth Quarter Financial Results
The Company reported net sales increased 13.6 percent to $227.6 million
for the fourth quarter of fiscal 2014, compared to net sales of $200.3
million for the fourth quarter of fiscal 2013. Comparable store sales
increased 9.5 percent in the fourth quarter of fiscal 2014.
The gross profit margin for the fourth quarter of fiscal 2014 increased
to 28.6 percent compared to 28.5 percent for the fourth quarter of
fiscal 2013. The merchandise margin decreased 0.4 percent while buying,
distribution and occupancy expenses decreased 0.5 percent, as a
percentage of sales.
Selling, general and administrative expenses for the fourth quarter
increased $4.4 million to $60.5 million. As a percentage of sales, these
expenses decreased to 26.6 percent compared to 28.0 percent in the
fourth quarter of fiscal 2013.
The Company opened one new store during the fourth quarter of fiscal
2014 compared to three stores in the fourth quarter of fiscal 2013.
Net earnings for the fourth quarter of fiscal 2014 were $3.0 million, or
$0.15 per diluted share. For the fourth quarter of fiscal 2013, the
Company reported net earnings of $0.6 million, or $0.03 per diluted
share. Fourth quarter earnings for fiscal 2014 includes approximately
$.03 of additional expense within cost of sales attributable to the west
coast port congestion.
Fiscal Year 2014 Financial Results
Net sales increased 6.3 percent to $940.2 million for fiscal 2014, as
compared to net sales of $884.8 million for fiscal 2013. Comparable
store sales for the 52-week period ended January 31, 2015 increased 1.8
percent. Net earnings for fiscal 2014 were $25.5 million, or $1.27 per
diluted share, compared to net earnings of $26.9 million, or $1.32 per
diluted share, in the last fiscal year.
Gross profit increased to $273.7 million in fiscal 2014. The gross
profit margin in fiscal 2014 decreased to 29.1 percent from 29.3 percent
in the prior fiscal year. Merchandise margin remained flat between years
while buying, distribution and occupancy costs, as a percentage of
sales, increased 0.2 percent.
Selling, general and administrative expenses, as a percentage of sales,
were 24.6 percent for fiscal 2014 compared to 24.4 percent last year.
The Company opened 31 stores during fiscal 2014 as compared to 32 stores
in the prior year.
Speaking on the results, Cliff Sifford, President and CEO, said, “I am
proud of our entire Shoe Carnival team who worked hard to deliver great
product and excellent customer service helping us to exceed our fourth
quarter guidance and achieve record annual sales. I am also excited with
our customers’ willingness to increasingly embrace our multi-channel
shopping experience with increased traffic on-line and in our stores.”
Store Growth
During fiscal 2014, the Company opened 31 new stores and closed seven to
end the year at 400 stores. One store was opened and five were closed in
the fourth quarter of fiscal 2014. Total retail selling space increased
to 4.4 million square feet at the end of fiscal 2014 from 4.1 million
square feet at the end of fiscal 2013.
Store openings and closings by quarter for the fiscal year were as
follows:
|
|
New Stores
|
|
Store Closings
|
1st quarter 2014
|
|
7
|
|
1
|
2nd quarter 2014
|
|
16
|
|
0
|
3rd quarter 2014
|
|
7
|
|
1
|
4th quarter 2014
|
|
1
|
|
5
|
Fiscal year 2014
|
|
31
|
|
7
|
|
|
|
|
|
The new store opened during the fourth quarter is located in:
City
|
|
Market
|
|
Total Stores in the Market
|
Philadelphia, PA
|
|
Philadelphia
|
|
2
|
|
|
|
|
|
In fiscal 2015, the Company expects to open 18 to 22 new stores,
relocate two stores and close 11 stores. During the first quarter of
fiscal 2015, the Company expects to open seven stores, relocate one
store and close six stores. In the first quarter of fiscal 2014, the
Company opened seven stores, relocated two stores and one store was
closed.
Share Repurchase Program
For the fiscal year ended January 31, 2015, approximately 405,000 shares
were repurchased at an aggregate cost of $7.5 million under the
Company’s share repurchase program. On December 11, 2014, the Company’s
Board of Directors authorized a new share repurchase program for up to
$25 million of its outstanding common stock, effective January 1, 2015.
The new share repurchase program replaced the existing $25 million share
repurchase program that was authorized in August 2010, which expired in
accordance with its terms on December 31, 2014.
Fiscal 2015 Earnings Outlook
The Company expects fiscal 2015 net sales to be in the range of $977
million to $991 million, with a comparable store sales increase in the
range of 1.5 to 3.0 percent. Earnings per diluted share for the fiscal
year are expected to be in the range of $1.40 to $1.48. This represents
an increase of 10 to 17 percent over fiscal 2014 earnings per diluted
share of $1.27.
Conference Call
Today, at 4:30 p.m. Eastern Time, the Company will host a conference
call to discuss the fourth quarter and fiscal 2014 results. Participants
can listen to the live webcast of the call by visiting Shoe Carnival's
Investors webpage at www.shoecarnival.com.
While the question-and-answer session will be available to all
listeners, questions from the audience will be limited to institutional
analysts and investors. A replay of the webcast will be available on the
Company’s website beginning approximately two hours after the conclusion
of the conference call and will be archived for one year.
First Quarter Fiscal 2015 Cash Dividend
The Company announced today that its Board of Directors has approved the
payment of a quarterly cash dividend. The quarterly cash dividend of
$0.06 per share will be paid on April 20, 2015, to shareholders of
record as of the close of business on April 6, 2015.
Future declarations of dividends are subject to approval of the Board of
Directors and will depend on the Company's results of operations,
financial condition, business conditions and other factors deemed
relevant by the Board of Directors.
Record Date and Date of Annual Shareholder Meeting
The Company also announced that April 10, 2015 has been set as the
shareholder of record date and the Annual Meeting of Shareholders will
be held on June 11, 2015.
About Shoe Carnival
Shoe Carnival, Inc. is one of the nation’s largest family footwear
retailers, offering a broad assortment of moderately priced dress,
casual and athletic footwear for men, women and children with emphasis
on national and regional name brands. As of March 17, 2015, the Company
operates 404 stores in 33 states and Puerto Rico, and offers online
shopping at www.shoecarnival.com.
Headquartered in Evansville, IN, Shoe Carnival trades on The NASDAQ
Stock Market LLC under the symbol SCVL. Shoe Carnival's press releases
and annual report are available on the Company's website at www.shoecarnival.com.
Cautionary Statement Regarding Forward-Looking Information
This press release contains forward-looking statements, within the
meaning of the Private Securities Litigation Reform Act of 1995, that
involve a number of risks and uncertainties. A number of factors could
cause our actual results, performance, achievements or industry results
to be materially different from any future results, performance or
achievements expressed or implied by these forward-looking statements.
These factors include, but are not limited to: general economic
conditions in the areas of the continental United States and Puerto Rico
in which our stores are located; the effects and duration of economic
downturns and unemployment rates; changes in the overall retail
environment and more specifically in the apparel and footwear retail
sectors; our ability to generate increased sales at our stores; the
potential impact of national and international security concerns on the
retail environment; changes in our relationships with key suppliers; the
impact of competition and pricing; our ability to successfully manage
and execute our marketing initiatives and maintain positive brand
perception and recognition; changes in weather patterns, consumer buying
trends and our ability to identify and respond to emerging fashion
trends; the impact of disruptions in our distribution or information
technology operations; the effectiveness of our inventory management;
the impact of hurricanes or other natural disasters on our stores, as
well as on consumer confidence and purchasing in general; risks
associated with the seasonality of the retail industry; the impact of
unauthorized disclosure or misuse of personal and confidential
information about our customers, vendors and employees; our ability to
manage our third-party vendor relationships; our ability to successfully
execute our growth strategy, including the availability of desirable
store locations at acceptable lease terms, our ability to open new
stores in a timely and profitable manner, including our entry into major
new markets, and the availability of sufficient funds to implement our
growth plans; higher than anticipated costs associated with the closing
of underperforming stores; our ability to successfully grow our
e-commerce business; the inability of manufacturers to deliver products
in a timely manner; changes in the political and economic environments
in China, Brazil, Europe and East Asia, where the primary manufacturers
of footwear are located; the impact of regulatory changes in the United
States and the countries where our manufacturers are located; the
continued favorable trade relations between the United States and China
and the other countries which are the major manufacturers of footwear;
the resolution of litigation or regulatory proceedings in which we are
or may become involved; and our ability to meet our labor needs while
controlling costs; and other factors described in the Company’s SEC
filings, including the Company’s latest Annual Report on Form 10-K.
In addition, these forward-looking statements necessarily depend upon
assumptions, estimates and dates that may be incorrect or imprecise and
involve known and unknown risks, uncertainties and other factors.
Accordingly, any forward-looking statements included in this press
release do not purport to be predictions of future events or
circumstances and may not be realized. Forward-looking statements can be
identified by, among other things, the use of forward-looking terms such
as “believes,” “expects,” “may,” “will,” “should,” “seeks,” “pro forma,”
“anticipates,” “intends” or the negative of any of these terms, or
comparable terminology, or by discussions of strategy or intentions.
Given these uncertainties, we caution investors not to place undue
reliance on these forward-looking statements, which speak only as of the
date hereof. We disclaim any obligation to update any of these factors
or to publicly announce any revisions to the forward-looking statements
contained in this press release to reflect future events or developments.
SHOE CARNIVAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen
|
|
|
Thirteen
|
|
|
Fifty-two
|
|
|
Fifty-two
|
|
|
|
Weeks Ended
|
|
|
Weeks Ended
|
|
|
Weeks Ended
|
|
|
Weeks Ended
|
|
|
|
January 31, 2015
|
|
|
February 1, 2014
|
|
|
January 31, 2015
|
|
|
February 1, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
$
|
227,632
|
|
|
$
|
200,311
|
|
|
$
|
940,162
|
|
|
$
|
884,785
|
|
Cost of sales (including buying,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
distribution and occupancy costs)
|
|
|
|
162,519
|
|
|
|
143,129
|
|
|
|
666,483
|
|
|
|
625,468
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
|
65,113
|
|
|
|
57,182
|
|
|
|
273,679
|
|
|
|
259,317
|
|
Selling, general and administrative
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
expenses
|
|
|
|
60,525
|
|
|
|
56,134
|
|
|
|
231,826
|
|
|
|
215,650
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
|
4,588
|
|
|
|
1,048
|
|
|
|
41,853
|
|
|
|
43,667
|
|
Interest income
|
|
|
|
(3
|
)
|
|
|
(4
|
)
|
|
|
(14
|
)
|
|
|
(12
|
)
|
Interest expense
|
|
|
|
41
|
|
|
|
41
|
|
|
|
165
|
|
|
|
173
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
|
4,550
|
|
|
|
1,011
|
|
|
|
41,702
|
|
|
|
43,506
|
|
Income tax expense
|
|
|
|
1,575
|
|
|
|
413
|
|
|
|
16,175
|
|
|
|
16,635
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
2,975
|
|
|
$
|
598
|
|
|
$
|
25,527
|
|
|
$
|
26,871
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
0.15
|
|
|
$
|
0.03
|
|
|
$
|
1.27
|
|
|
$
|
1.33
|
|
Diluted
|
|
|
$
|
0.15
|
|
|
$
|
0.03
|
|
|
$
|
1.27
|
|
|
$
|
1.32
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
19,576
|
|
|
|
19,949
|
|
|
|
19,777
|
|
|
|
19,926
|
|
Diluted
|
|
|
|
19,590
|
|
|
|
19,949
|
|
|
|
19,791
|
|
|
|
19,947
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends declared per share
|
|
|
$
|
0.06
|
|
|
$
|
0.06
|
|
|
$
|
0.24
|
|
|
$
|
0.24
|
|
Financial Note:
Per share amounts for net income purposes are computed independently for
each quarter of the fiscal year. The sum of the quarters may not equal
the total year due to the impact of changes in weighted shares
outstanding and differing applications of earnings under the two-class
method.
SHOE CARNIVAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
|
|
|
|
|
|
January 31,
2015
|
|
February 1, 2014
|
|
|
|
|
ASSETS
|
|
|
|
Current Assets:
|
|
|
|
Cash and cash equivalents
|
$
|
61,376
|
|
$
|
48,253
|
Accounts receivable
|
|
2,928
|
|
|
4,337
|
Merchandise inventories
|
|
287,877
|
|
|
284,801
|
Deferred income taxes
|
|
957
|
|
|
1,208
|
Other
|
|
5,991
|
|
|
3,916
|
Total Current Assets
|
|
359,129
|
|
|
342,515
|
Property and equipment - net
|
|
101,294
|
|
|
90,193
|
Deferred income taxes
|
|
4,227
|
|
|
3,426
|
Other noncurrent assets
|
|
366
|
|
|
717
|
Total Assets
|
$
|
465,016
|
|
$
|
436,851
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
Current Liabilities:
|
|
|
|
Accounts payable
|
$
|
67,999
|
|
$
|
62,671
|
Accrued and other liabilities
|
|
15,123
|
|
|
14,988
|
Total Current Liabilities
|
|
83,122
|
|
|
77,659
|
Deferred lease incentives
|
|
29,908
|
|
|
24,430
|
Accrued rent
|
|
10,505
|
|
|
9,224
|
Deferred compensation
|
|
9,901
|
|
|
8,232
|
Other
|
|
382
|
|
|
434
|
Total Liabilities
|
|
133,818
|
|
|
119,979
|
Total Shareholders' Equity
|
|
331,198
|
|
|
316,872
|
Total Liabilities and Shareholders' Equity
|
$
|
465,016
|
|
$
|
436,851
|
|
|
|
|
|
|
SHOE CARNIVAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
|
|
|
|
|
|
Fifty-two Weeks Ended January 31, 2015
|
|
Fifty-two Weeks Ended February 1, 2014
|
|
|
|
|
Cash Flows From Operating Activities
|
|
|
|
Net income
|
$
|
25,527
|
|
|
$
|
26,871
|
|
Adjustments to reconcile net income to net
|
|
|
|
cash provided by operating activities:
|
|
|
|
Depreciation and amortization
|
|
20,063
|
|
|
|
17,428
|
|
Stock-based compensation
|
|
1,064
|
|
|
|
3,295
|
|
Loss on retirement and impairment of assets
|
|
1,104
|
|
|
|
1,180
|
|
Deferred income taxes
|
|
(550
|
)
|
|
|
(721
|
)
|
Lease incentives
|
|
8,307
|
|
|
|
8,112
|
|
Other
|
|
(1,070
|
)
|
|
|
405
|
|
Changes in operating assets and liabilities:
|
|
|
|
Accounts receivable
|
|
1,409
|
|
|
|
(2,135
|
)
|
Merchandise inventories
|
|
(3,076
|
)
|
|
|
(12,519
|
)
|
Accounts payable and accrued liabilities
|
|
6,838
|
|
|
|
(4,158
|
)
|
Other
|
|
(1,962
|
)
|
|
|
862
|
|
Net cash provided by operating activities
|
|
57,654
|
|
|
|
38,620
|
|
|
|
|
|
Cash Flows From Investing Activities
|
|
|
|
Purchases of property and equipment
|
|
(33,543
|
)
|
|
|
(30,966
|
)
|
Proceeds from sale of property and equipment
|
|
836
|
|
|
|
0
|
|
Proceeds from notes receivable
|
|
250
|
|
|
|
200
|
|
Net cash used in investing activities
|
|
(32,457
|
)
|
|
|
(30,766
|
)
|
|
|
|
|
Cash Flows From Financing Activities
|
|
|
|
Proceeds from issuance of stock
|
|
287
|
|
|
|
278
|
|
Dividends paid
|
|
(4,828
|
)
|
|
|
(4,867
|
)
|
Excess tax benefits from stock-based compensation
|
|
55
|
|
|
|
185
|
|
Purchase of common stock for treasury
|
|
(7,533
|
)
|
|
|
0
|
|
Shares surrendered by employees to pay taxes on restricted stock
|
|
(55
|
)
|
|
|
(953
|
)
|
Net cash used in financing activities
|
|
(12,074
|
)
|
|
|
(5,357
|
)
|
Net increase in cash and cash equivalents
|
|
13,123
|
|
|
|
2,497
|
|
Cash and cash equivalents at beginning of period
|
|
48,253
|
|
|
|
45,756
|
|
Cash and Cash Equivalents at End of Period
|
$
|
61,376
|
|
|
$
|
48,253
|
|
Source: Shoe Carnival, Inc.
Shoe Carnival, Inc.
Cliff Sifford
President, Chief Executive
Officer and Chief Merchandising Officer
or
W. Kerry Jackson
Senior
Executive Vice President, Chief Operating and Financial Officer and
Treasurer
(812) 867-6471