EVANSVILLE, Ind., Jan. 6 /PRNewswire/ -- Shoe Carnival, Inc.
(Nasdaq: SCVL), a leading retailer of value-priced footwear and accessories,
today reported sales for the five-week period ended January 1, 2000 increased
19.7 percent to $37.8 million from sales of $31.5 million for the five-week
period ended January 2, 1999. Comparable store sales decreased 1.7 percent in
December 1999.
Due to lower than expected sales and gross profit margins achieved during
the quarter and the assumption that January comparable store sales will be
flat, the Company expects earnings per diluted share for the fourth quarter to
be in the range of $0.03 to $0.05 per share and $0.88 to $0.90 per share for
the full year. Earnings per diluted share in the fourth quarter of 1998 were
$0.05 per share and $0.76 per share for the full year of 1998.
Mark Lemond, president and chief executive officer, commented, "The
comparable store sales decrease was attributable to the unseasonably warm
weather and the aggressive promotional environment, both in and out of the
malls. This promotional environment, and our commitment to keep our
inventories clean, resulted in lower than expected gross profit margins. With
taking these actions our inventories are cleaner than last year.
"Although we are disappointed with the expected results of the fourth
quarter, it is important to note that fiscal 1999 remains a milestone year for
Shoe Carnival. With the expected fourth quarter earnings we now expect full
year earnings to be in the range of $0.88 to $0.90 per diluted share, at least
15 percent higher than the prior year record earnings. In the first three
quarters of 1999 we achieved record sales and earnings on a comparable quarter
basis. Sales for the first 11 months of 1999 increased 21.9 percent to a
record $321.2 million from sales of $263.5 million for the first 11 months of
1998. Comparable store sales increased by 1.9 percent for the 48-week period.
Additionally, the 28 stores opened during the year have exceeded our
expectations. We will continue our growth in 2000 with the opening of between
30 and 35 stores. As we enter into spring 2000, our inventories are well
positioned and I remain optimistic that Shoe Carnival will continue its strong
performance."
Shoe Carnival, Inc. expects to announce fourth quarter and year-end
results before the stock market opens on March 9, 2000.
This press release contains certain forward looking statements that
involve a number of risks and uncertainties. Among the factors that could
cause actual results to differ materially are the following: general economic
conditions in the areas of the United States in which the Company's stores are
located; changes in the overall retail environment and more specifically in
the apparel and footwear retail sectors; the impact of competition, weather
patterns, consumer buying trends and the ability of the Company to identify
and respond to emerging fashion trends; the availability of desirable store
locations and management's ability to negotiate acceptable lease terms and
open new stores in a timely manner; and changes in the political and economic
environments in the People's Republic of China and Brazil, where most of the
Company's products are manufactured, and the continued favorable trade
relationships between those countries and the United States.
Shoe Carnival is a chain of 139 footwear stores located in the Midwest and
mid-South. Combining value pricing with an entertaining store format, Shoe
Carnival is a leading retailer of name brand and private label footwear for
the entire family. Headquartered in Evansville, IN, Shoe Carnival trades on
the Nasdaq Stock Market under the symbol SCVL. Shoe Carnival's press releases
and annual report are available on the Company's website at
http://www.shoecarnival.com/ .
SOURCE Shoe Carnival, Inc.
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Related links:
http://www.shoecarnival.com
Company News On-Call:
http://www.prnewswire.com/comp/127183.html or fax,
800-758-5804, ext. 127183
CONTACT:
Mark L. Lemond, President and Chief Executive
Officer, or W. Kerry Jackson, Vice President and Chief Financial
Officer of Shoe Carnival, Inc., 812-867-4034
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