EVANSVILLE, Ind., May 18 /PRNewswire/ -- Shoe Carnival, Inc.
(Nasdaq: SCVL) a leading retailer of value-priced footwear and accessories,
today announced earnings and sales for the quarter ended April 29, 2000. Net
earnings for the first quarter of fiscal 2000 were $3.4 million, or
$.26 per share on a diluted basis, compared with net earnings of $4.0 million,
or $.30 per share on a diluted basis, in the first quarter of fiscal 1999.
Net sales for the first quarter increased 22.1 percent to a first quarter
record of $95.4 million from $78.1 million last year. Comparable store sales
increased by 1.4 percent for the 13-week period.
Gross profit margins, as a percentage of sales, were 29.6 percent in the
first quarter compared to 31.8 percent last year. Selling, general and
administrative expenses, as a percentage of sales, remained unchanged from the
prior year at 23.0 percent.
Mark Lemond, president and chief executive officer stated, "Footwear
retail sales, particularly non-athletic product, were not as strong as nearly
everyone in the industry expected. Although there were geographic pockets and
certain brands that were exceptions, the customer did not respond to seasonal
footwear. This was particularly true in the South and Southeast regions which
incurred unseasonably cool weather in April and the last three weeks of March.
Consequently, sales of spring product, primarily sandals and opened-up dress
shoes, were substantially below plan.
"This weakness in sales put downward pressure on gross profit margins as
we accelerated markdowns to help control inventories. Additionally, with the
lower sales of high-margin seasonal product, athletic footwear sales, which
achieve a lower gross margin than other footwear categories, represented a
larger percentage of the sales mix than last year.
"We don't believe the lackluster sales results were specific to Shoe
Carnival. In fact, we believe our stores performed better than many of our
direct competitors in the branded family footwear sector in terms of total
sales growth, comparable store sales gains and operating profitability for the
first quarter. Despite the lower than planned sales, we held the line on
expenses during the quarter. Selling, general and administrative costs were
flat with last year as a percentage of sales.
"We expect to open approximately 30 stores this year, including the six
stores we opened during the first quarter. Our approach is to balance new
stores between filling-in existing markets and expanding into new markets or
geographic areas. By expanding existing markets or clustering new stores in
geographic areas we are better able to leverage field management, distribution
and advertising costs. This year 13 of the new stores will be in existing
markets. Of the 17 stores that will be in new markets, 11 stores will be
concentrated in Louisiana, Oklahoma and Texas."
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. As of today, total shares repurchased
under this program since the announcement on January 7, 2000 have been 740,000
shares at a cost of $5.7 million. The Company intends to continue to
repurchase shares from time to time.
The six stores opened during the first quarter included locations in:
City Market/Stores
Athens, Ga. Atlanta, 9
Dothan, Ala. Dothan, 1
Elmhurst, Ill. Chicago, 11
Tampa, Fla. Tampa, 4
Pensacola, Fla. Pensacola, 1
Fayetteville, N.C. Raleigh, 3
The Athens, Ga. store will operate under the "Shoe Carnival Outlet" name
and will sell primarily clearance merchandise.
This 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; higher than anticipated costs associated with the closing
of underperforming stores; and other factors described in the Company's form
10-K for fiscal year 1999.
Shoe Carnival is a chain of 147 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, Ind., 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 .
SHOE CARNIVAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share)
(Unaudited)
13 Weeks Ended
April 29, May 1,
2000 1999
Net sales $95,405 $78,111
Cost of sales (including buying,
distribution and occupancy costs) 67,212 53,253
Gross profit 28,193 24,858
Selling, general and administrative
expenses 21,943 17,968
Operating income 6,250 6,890
Interest expense 579 150
Income before income taxes 5,671 6,740
Income taxes 2,240 2,696
Net income $3,431 $4,044
Net income per share:
Basic $.26 $.31
Diluted $.26 $.30
Average shares outstanding:
Basic 12,974 13,206
Diluted 13,149 13,532
SHOE CARNIVAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
ASSETS
April 29, Jan. 29, May 1,
2000 2000 1999
Current Assets:
Cash and cash equivalents $2,767 $1,675 $2,598
Accounts receivable 624 694 688
Merchandise inventories 111,980 104,730 79,722
Deferred income tax benefit 795 876 798
Other 1,476 1,168 845
Total Current Assets 117,642 109,143 84,651
Property and equipment-net 55,503 53,710 45,367
TOTAL ASSETS $173,145 $162,853 $130,018
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $28,781 $33,817 $19,119
Accrued and other liabilities 9,255 6,266 9,337
Current portion of long-term debt 776 714 671
Total Current Liabilities 38,812 40,797 29,127
Long-term debt 31,331 22,338 9,202
Deferred lease incentives 3,187 3,077 2,348
Deferred income taxes 3,487 3,296 2,106
TOTAL LIABILITIES 76,817 69,508 42,783
SHAREHOLDERS' EQUITY 96,328 93,345 87,235
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $173,145 $162,853 $130,018
SOURCE Shoe Carnival, Inc.
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Related links:
http://www.shoecarnival.com
CONTACT:
Mark L. Lemond, President and Chief Executive
Officer or W. Kerry Jackson, Vice President, Chief Financial
Officer and Treasurer, both of Shoe Carnival, Inc., 812-867-4034
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