Achieved Record First Quarter Net Sales of $260.5 Million and
Record First Quarter Diluted EPS of $0.56
EVANSVILLE, Ind.--(BUSINESS WIRE)--May 19, 2016--
Shoe Carnival, Inc. (Nasdaq: SCVL), a leading retailer of moderately
priced footwear and accessories, today reported results for the first
quarter ended April 30, 2016.
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.
Store openings and closings by quarter for the fiscal year are as
follows:
|
|
|
New Stores
|
|
Store Closings
|
|
1st quarter 2016
|
|
3
|
|
4
|
|
2nd quarter 2016
|
|
9
|
|
0
|
|
3rd quarter 2016
|
|
6
|
|
1
|
|
4th quarter 2016
|
|
2
|
|
5
|
|
Fiscal year 2016
|
|
20
|
|
10
|
The three new stores opened during the first quarter include locations
in:
|
|
|
|
|
Total Stores in
|
|
City
|
|
Market
|
|
the Market
|
|
Mooresville, NC
|
|
Charlotte
|
|
7
|
|
Grand Forks, ND
|
|
Fargo
|
|
2
|
|
Litchfield, IL
|
|
St. Louis
|
|
13
|
Conference Call
Today, at 4:30 p.m. Eastern Time, the Company will host a conference
call to discuss the first quarter 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.
Date of Annual Shareholder Meeting
As previously announced, the Company will hold its Annual Meeting of
Shareholders on June 16, 2016 at its corporate headquarters located at
7500 East Columbia Street, Evansville, Indiana.
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 May 19, 2016, the Company
operates 404 stores in 34 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 in which our
stores are located and the impact of the ongoing economic crisis in
Puerto Rico on sales at, and cash flows of, our stores located in Puerto
Rico; 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.
Financial Tables Follow
|
SHOE CARNIVAL, INC.
|
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|
|
(In thousands, except per share)
|
|
(Unaudited)
|
|
|
|
|
|
Thirteen
|
|
Thirteen
|
|
|
|
Weeks Ended
|
|
Weeks Ended
|
|
|
|
April 30,
|
|
May 2,
|
|
|
|
|
2016
|
|
|
|
2015
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
260,470
|
|
|
$
|
252,767
|
|
|
Cost of sales (including buying, distribution and occupancy costs)
|
|
|
184,914
|
|
|
|
178,078
|
|
|
Gross profit
|
|
|
75,556
|
|
|
|
74,689
|
|
|
Selling, general and administrative expenses
|
|
|
58,271
|
|
|
|
57,659
|
|
|
Operating income
|
|
|
17,285
|
|
|
|
17,030
|
|
|
Interest income
|
|
|
(3
|
)
|
|
|
(3
|
)
|
|
Interest expense
|
|
|
43
|
|
|
|
42
|
|
|
Income before income taxes
|
|
|
17,245
|
|
|
|
16,991
|
|
|
Income tax expense
|
|
|
6,584
|
|
|
|
6,595
|
|
|
Net income
|
|
$
|
10,661
|
|
|
$
|
10,396
|
|
|
|
|
|
|
|
|
Net income per share:
|
|
|
|
|
|
Basic
|
|
$
|
0.56
|
|
|
$
|
0.52
|
|
|
Diluted
|
|
$
|
0.56
|
|
|
$
|
0.52
|
|
|
|
|
|
|
|
|
Weighted average shares:
|
|
|
|
|
|
Basic
|
|
|
18,775
|
|
|
|
19,588
|
|
|
Diluted
|
|
|
18,780
|
|
|
|
19,601
|
|
|
|
|
|
|
|
|
Cash dividends declared per share
|
|
$
|
0.065
|
|
|
$
|
0.06
|
|
|
|
|
SHOE CARNIVAL, INC.
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
(In thousands)
|
|
(Unaudited)
|
|
|
|
|
|
April 30,
|
|
January 30,
|
|
May 2,
|
|
|
|
2016
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
Current Assets:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
65,998
|
|
$
|
68,814
|
|
$
|
69,754
|
|
Accounts receivable
|
|
|
1,657
|
|
|
2,131
|
|
|
2,441
|
|
Merchandise inventories
|
|
|
303,011
|
|
|
292,878
|
|
|
295,248
|
|
Deferred income taxes
|
|
|
1,411
|
|
|
1,061
|
|
|
1,016
|
|
Other
|
|
|
7,550
|
|
|
5,193
|
|
|
12,915
|
|
Total Current Assets
|
|
|
379,627
|
|
|
370,077
|
|
|
381,374
|
|
Property and equipment - net
|
|
|
102,636
|
|
|
103,386
|
|
|
103,107
|
|
Deferred income taxes
|
|
|
8,078
|
|
|
7,158
|
|
|
5,781
|
|
Other noncurrent assets
|
|
|
617
|
|
|
472
|
|
|
366
|
|
Total Assets
|
|
$
|
490,958
|
|
$
|
481,093
|
|
$
|
490,628
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
Current Liabilities:
|
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
69,119
|
|
$
|
72,086
|
|
$
|
76,375
|
|
Accrued and other liabilities
|
|
|
20,688
|
|
|
15,848
|
|
|
21,190
|
|
Total Current Liabilities
|
|
|
89,807
|
|
|
87,934
|
|
|
97,565
|
|
Deferred lease incentives
|
|
|
31,106
|
|
|
31,971
|
|
|
30,095
|
|
Accrued rent
|
|
|
11,301
|
|
|
11,224
|
|
|
10,888
|
|
Deferred compensation
|
|
|
10,159
|
|
|
9,612
|
|
|
10,605
|
|
Other
|
|
|
715
|
|
|
550
|
|
|
212
|
|
Total Liabilities
|
|
|
143,088
|
|
|
141,291
|
|
|
149,365
|
|
Total Shareholders' Equity
|
|
|
347,870
|
|
|
339,802
|
|
|
341,263
|
|
Total Liabilities and Shareholders' Equity
|
|
$
|
490,958
|
|
$
|
481,093
|
|
$
|
490,628
|
|
|
|
SHOE CARNIVAL, INC.
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(In thousands)
|
|
(Unaudited)
|
|
|
|
|
|
Thirteen
|
|
Thirteen
|
|
|
|
Weeks Ended
|
|
Weeks Ended
|
|
|
|
April 30, 2016
|
|
May 2, 2015
|
|
|
|
|
|
|
|
Cash Flows From Operating Activities
|
|
|
|
|
|
Net income
|
|
$
|
10,661
|
|
|
$
|
10,396
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
Depreciation and amortization
|
|
|
5,853
|
|
|
|
5,574
|
|
|
Stock-based compensation
|
|
|
635
|
|
|
|
892
|
|
|
Loss on retirement and impairment of assets
|
|
|
47
|
|
|
|
139
|
|
|
Deferred income taxes
|
|
|
(1,270
|
)
|
|
|
(1,613
|
)
|
|
Lease incentives
|
|
|
263
|
|
|
|
1,105
|
|
|
Other
|
|
|
(676
|
)
|
|
|
(250
|
)
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
Accounts receivable
|
|
|
474
|
|
|
|
488
|
|
|
Merchandise inventories
|
|
|
(10,133
|
)
|
|
|
(7,371
|
)
|
|
Accounts payable and accrued liabilities
|
|
|
(5,761
|
)
|
|
|
8,109
|
|
|
Other
|
|
|
4,307
|
|
|
|
(618
|
)
|
|
Net cash provided by operating activities
|
|
|
4,400
|
|
|
|
16,851
|
|
|
|
|
|
|
|
|
Cash Flows From Investing Activities
|
|
|
|
|
|
Purchases of property and equipment
|
|
|
(4,161
|
)
|
|
|
(7,342
|
)
|
|
Net cash used in investing activities
|
|
|
(4,161
|
)
|
|
|
(7,342
|
)
|
|
|
|
|
|
|
|
Cash Flows From Financing Activities
|
|
|
|
|
|
Proceeds from issuance of stock
|
|
|
72
|
|
|
|
56
|
|
|
Dividends paid
|
|
|
(1,247
|
)
|
|
|
(1,199
|
)
|
|
Excess tax benefits from stock-based compensation
|
|
|
0
|
|
|
|
25
|
|
|
Purchase of common stock for treasury
|
|
|
(1,596
|
)
|
|
|
0
|
|
|
Shares surrendered by employees to pay taxes on restricted stock
|
|
|
(284
|
)
|
|
|
(13
|
)
|
|
Net cash used in financing activities
|
|
|
(3,055
|
)
|
|
|
(1,131
|
)
|
|
Net (decrease) increase in cash and cash equivalents
|
|
|
(2,816
|
)
|
|
|
8,378
|
|
|
Cash and cash equivalents at beginning of period
|
|
|
68,814
|
|
|
|
61,376
|
|
|
Cash and Cash Equivalents at end of period
|
|
$
|
65,998
|
|
|
$
|
69,754
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160519006491/en/
Source: Shoe Carnival, Inc.
Shoe Carnival, Inc.
Cliff Sifford
President
and Chief Executive Officer
or
W. Kerry Jackson
Senior
Executive Vice President, Chief Operating and Financial Officer and
Treasurer
(812) 867-6471