EVANSVILLE, Ind.--(BUSINESS WIRE)--Jan. 14, 2019--
Shoe Carnival, Inc. (NASDAQ: SCVL), a leading retailer of moderately
priced footwear and accessories, today updated its sales and earnings
guidance for the fiscal year ending February 2, 2019. The Company also
introduced an outlook for fiscal year 2019.
The Company now expects fiscal 2018 net sales to be approximately $1.028
billion and expects comparable store sales to increase approximately 4
percent. Earnings per diluted share for fiscal 2018 are expected to be
in the range of $2.41 to $2.43. In fiscal 2017, net sales were $1.019
billion, comparable store sales increased 0.3 percent and the Company
earned $1.15 per diluted share. Adjusted earnings per diluted share for
fiscal 2017 were $1.49.
Cliff Sifford, Shoe Carnival’s President and Chief Executive Officer,
commented, “Our solid finish to the fiscal year has been driven by
broad-based sales increases, with particular strength in our boot,
casual and athletic categories. We are pleased with our team’s efforts
to enhance margins and effectively manage inventory, which resulted in
higher than expected annual profitability. For fiscal 2019, we are
excited about the investments we are making in customer engagement and
technology as we position Shoe Carnival for the next level of growth.”
For the fiscal year ending February 1, 2020, Shoe Carnival expects net
sales in the range of $1.035 billion to $1.043 billion with a low
single-digit comparable store sales increase. Earnings per diluted share
are expected to be in the range of $2.60 to $2.70 for fiscal 2019.
The Company will report its full fourth quarter and fiscal 2018 results
on March 28, 2019.
Shoe Carnival does not plan to provide preliminary financial results in
the future other than in unique circumstances, or in the event of a
material event that requires disclosure. As previously announced,
members of the Shoe Carnival management team will present at the ICR
Conference on Monday, January 14, 2019 at 2:00 p.m. Eastern Time. The
presentation will be webcast live, and a replay will be available on the
Investors section of Shoe Carnival’s web site at www.shoecarnival.com.
Non-GAAP Adjusted Results
The non-GAAP adjusted results for the full year of fiscal 2017 discussed
herein exclude the impact of a gain on insurance proceeds recorded in
cost of sales related to hurricane affected stores, non-cash impairment
charges for underperforming stores and additional stock-based
compensation expense recorded in selling, general and administrative
expenses and additional income tax expense associated with the enactment
of the U.S. Tax Cuts and Jobs Act of 2017 (the “Tax Act”).
These adjusted results are provided to enhance the user's overall
understanding of the Company's historical operations and financial
performance. Specifically, the Company believes the adjusted results
provide investors with relevant period-to-period comparisons of the
Company’s core operations. The unaudited adjusted results are provided
in addition to, and not as alternatives for, the Company’s reported
results determined in accordance with generally accepted accounting
principles. A complete reconciliation of actual results to the adjusted
results appears below in the table entitled “Reconciliation of GAAP to
Non-GAAP Financial Measures.”
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 name brands. As of January 14, 2019, the Company operates
396 stores in 35 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; our ability to successfully navigate the
increasing use of online retailers for fashion purchases and the impact
on traffic and transactions in our physical stores; our ability to
attract customers to our e-commerce website and to successfully grow our
e-commerce sales; the potential impact of national and international
security concerns on the retail environment; changes in our
relationships with key suppliers; changes in the political and economic
environments in, the status of trade relations with, and the impact of
changes in trade policies and tariffs impacting, China and other
countries which are the major manufacturers of footwear; 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 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, including as a result of a cyber-security breach; our ability
to manage our third-party vendor relationships; our ability to
successfully execute our business 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 business plans; higher than anticipated costs associated
with the closing of underperforming stores; the inability of
manufacturers to deliver products in a timely manner; the impact of
regulatory changes in the United States and the countries where our
manufacturers are located; the resolution of litigation or regulatory
proceedings in which we are or may become involved; our ability to meet
our labor needs while controlling costs; the impact of the U.S. Tax Cuts
and Jobs Act of 2017; and future stock repurchases under our stock
repurchase program and future dividend payments; 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.
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SHOE CARNIVAL, INC.
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RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
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(In thousands, except per share data)
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(Unaudited)
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Fifty-three Weeks Ended February 3, 2018
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Reported net income per diluted share
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$
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1.15
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Gain on insurance proceeds
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(0.21
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)
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Non-cash impairment charges
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0.21
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Additional stock-based compensation expense associated with the Tax
Act
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0.12
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Tax effect of gain on insurance proceeds, non-cash impairment
charges and stock-based compensation expense
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(0.05
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)
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Additional income tax expense on re-measurement of deferred tax
assets and liabilities
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0.27
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Adjusted diluted earnings per share
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$
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1.49
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View source version on businesswire.com: https://www.businesswire.com/news/home/20190114005245/en/
Source: 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
www.shoecarnival.com
(812)
867-6471