EVANSVILLE, Ind., May 20 /PRNewswire/ -- Shoe Carnival, Inc.
(Nasdaq: SCVL) a leading retailer of value-priced footwear and accessories,
today announced record earnings and sales for the quarter ended May 1, 1999.
Net earnings increased 30 percent to $4.0 million in the first quarter of
fiscal 1999 from $3.1 million in the first quarter of fiscal 1998. Earnings
per share on a diluted basis increased 30 percent to $.30 from $.23 last year.
Net sales for the first quarter increased 18.9 percent to a first quarter
record of $78.1 million from $65.7 million last year. Comparable store sales
increased by 3.4 percent for the 13-week period.
Gross profit margins improved by 0.3 percent, as a percentage of sales, to
31.8 percent in the first quarter compared to 31.5 percent last year.
Selling, general and administrative expenses, as a percentage of sales,
decreased to 23 percent in the first quarter of 1999 from 23.3 percent in the
first quarter of 1998. The resulting operating margin for the first quarter
improved to 8.8 percent from 8.2 percent a year ago.
Mark Lemond, president and chief executive officer stated, "Our first
quarter results represent the thirteenth consecutive quarter of double digit
net income and earnings per share increases and the eleventh consecutive
quarter of comparable store sales increases. Additionally, the 31.8 percent
gross profit margin and the 8.8 percent operating margin are the highest
quarterly margins obtained in the Company's history.
"We anticipate opening about 28 stores during 1999, including the five
stores opened year to date. Our inventories are well positioned for the
upcoming summer selling season and on a per-store basis are down slightly at
the end of the first quarter as compared with the first quarter in 1998."
Other first quarter highlights include:
-- To strengthen the store operations management, former regional
managers, Greg Brown and Steve Meyer, were promoted to vice president
of the North and South Divisions, respectively.
-- Former Disney marketing executive, David Kuhnlein, joined the Company
in the newly created position of vice president of marketing.
-- Store grand opening promotions were revamped and are now styled after
a gala Hollywood premier complete with local dignitaries and marching
bands.
-- The Company's existing credit facility was increased by $10 million
allowing for a total of $45 million to be used for cash advances and
letters of credit.
-- Three new stores opened, one each in Joliet, Ill.; Berwyn, Ill.; and
St. Petersburg, Fla. Two additional stores were opened in early
May, one each in Holland, Mich. and Calumet City, Ill., which is part
of the Chicago market area.
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 1998.
Shoe Carnival is a chain of 116 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, 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 STATEMENTS OF INCOME
(In thousands, except per share)
(Unaudited)
13 Weeks Ended
May 1, May 2,
1999 1998
Net sales $78,111 $65,694
Cost of sales (including
buying, distribution
and occupancy costs) 53,253 45,020
Gross profit 24,858 20,674
Selling, general and
administrative expenses 17,968 15,309
Operating income 6,890 5,365
Interest expense 150 174
Income before income taxes 6,740 5,191
Income taxes 2,696 2,076
Net income $4,044 $3,115
Net income per share:
Basic $.31 $.24
Diluted $.30 $.23
Average shares outstanding:
Basic 13,206 13,108
Diluted 13,532 13,404
SHOE CARNIVAL, INC.
CONDENSED BALANCE SHEETS
(In thousands)
(Unaudited)
ASSETS
May 1, January 30, May 2,
1999 1999 1998
Current Assets:
Cash and cash equivalents $2,598 $1,944 $2,080
Accounts receivable 688 567 678
Merchandise inventories 79,722 75,390 66,730
Deferred income tax benefit 798 782 850
Other 845 1,222 929
Total Current Assets 84,651 79,905 71,267
Property and equipment-net 45,367 40,856 32,263
TOTAL ASSETS $130,018 $120,761 $103,530
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $19,119 $25,698 $10,481
Accrued and other liabilities 9,337 5,757 7,346
Current portion of
long-term debt 671 782 647
Total Current Liabilities 29,127 32,237 18,474
Long-term debt 9,202 1,361 6,892
Deferred lease incentives 2,348 2,424 1,239
Deferred income taxes 2,106 2,072 1,817
TOTAL LIABILITIES 42,783 38,094 28,422
SHAREHOLDERS' EQUITY 87,235 82,667 75,108
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $130,018 $120,761 $103,530
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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