EVANSVILLE, Ind., May 4 /PRNewswire/ -- Shoe Carnival, Inc.
(Nasdaq: SCVL), a leading retailer of value-priced footwear and accessories,
today reported sales for the four-week period ended April 29, 2000 increased
37.2 percent to $34.1 million from sales of $24.8 million for the four-week
period ended May 1, 1999. Comparable store sales increased 12.9 percent in
April 2000.
Easter moved from the first Sunday in April 1999 to the third Sunday in
April 2000, thereby shifting the Easter selling period from March last year
into April this year. For the combined months of March and April 2000, total
sales increased 23.2 percent to $69.9 million from $56.8 million in the
comparable two month period in 1999. Comparable store sales for the combined
months of March and April increased 2.3 percent.
Sales for the first quarter ended April 29, 2000 increased 22.1 percent to
$95.4 million from sales of $78.1 million for the first quarter ended May 1,
1999. Comparable store sales increased 1.4 percent for the thirteen-week
period.
Due to lower than expected sales and reduced gross profit margins as a
result of the promotional environment during the quarter, the Company expects
earnings per diluted share for the first quarter to be in the range of $0.25
to $0.27 per share.
Mark Lemond, president and chief executive officer, commented, "We, along
with the rest of the footwear industry, fully anticipated that a late Easter
selling season combined with the expectation of much improved sandalized
footwear sales would result in a resurgence of the entire industry. The early
spring selling season turned out to be much weaker than expected due to a
number of reasons, principal among which was the comparatively cool and wet
weather in the midwest, south and southeast regions. After the second week in
March, sales of sandals and opened-up dress shoes decreased significantly
relative to last year. That trend continued into the month of April. That
was particularly true in our southern regions, which experienced much cooler
weather.
"This weakness in sales put downward pressure on gross profit margins due
primarily to the following reasons:
- we accelerated markdowns to help control inventories because of the
sales weakness and;
- with the lower sales of seasonal product, athletic footwear sales, which
achieve a lower gross profit margin than other footwear categories, was
a larger percentage of total sales than last year.
"Despite the weakness in the overall footwear industry we remain committed
to our expansion strategy. We expect to open approximately 30 new stores this
year, including the five we opened during the first quarter. Additionally,
although we experienced a sales and earnings shortfall in the first quarter
relative to our expectations, we believe our stores outperformed most of our
competitors in the middle price-point family footwear sector. We remain very
bullish on both our store concept and our growth and profit prospects for the
year 2000 and beyond."
During the first quarter of 2000, the Company repurchased 123,100 shares
of its common stock for $1.1 million as part of its previously announced
$10 million share repurchase program. Total share repurchases under this
program since the announcement on January 7, 2000 have been 415,000 shares at
a cost of $3.5 million. The Company intends to continue to repurchase shares
from time to time.
The Company also announced the opening of a new store in April in
Fayetteville, NC.
Shoe Carnival, Inc. expects to announce first quarter results on May 18,
2000.
Shoe Carnival is a chain of 145 footwear stores located in the Midwest,
South and Southeast. 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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