EVANSVILLE, Ind., July 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 July 1, 2000 increased
9 percent to $35 million from sales of $32.1 million for the five-week period
ended July 3, 1999. Comparable store sales decreased 5.7 percent in June
2000.
Sales for the first five months of 2000 increased 18 percent to
$161.5 million from sales of $137 million for the first five months of 1999.
Comparable store sales declined by 0.7 percent for the 22 week period.
Mark Lemond, president and chief executive officer commented, "Obviously,
the disappointing spring footwear season continued into June. We believe
this has been caused primarily by economic factors outside our control and the
lack of new footwear fashion in the marketplace. This was especially true
this spring as men's, women's and children's sandal sales were especially
troublesome. Due to the lower than expected sales trend, we currently expect
earnings per diluted share for the second quarter to be in the range of $0.13
to $0.16 per share. This includes consideration for the write-off of
approximately $.01 per share associated with the expected closing of one store
in September 2000.
"Heading into July, we are focused on cleaning up spring and summer
inventories while we bring in early fall receipts. We continue to expect that
the upcoming back-to-school season, which is driven by athletic product, will
result in a more normalized sales trend for the family footwear sector.
Currently, we are receiving fall athletic product earlier than last year and
we are getting solid reads on back-to-school athletic styles. We are hopeful
the consumer continues to react favorably to this product through the
back-to-school period.
"However, if the broader economic factors continue to depress consumer
spending in the footwear industry in the second half of the year, we will
react accordingly. This will include, in the very near term, planning lower
inventory levels and adjusting the expense structure. While we are prepared
to adjust current strategies, any changes would be dependent upon the retail
scenario we see unfold as we work our way through back-to-school and into the
fall season."
During May and June of 2000, the Company repurchased 505,000 shares of its
common stock for $3.3 million as part of its previously announced $10 million
share repurchase program. Total shares repurchased under this program since
the announcement on January 7, 2000 have been 920,000 shares at a cost of
$6.8 million. The Company intends to continue to repurchase shares from time
to time.
The Company also announced the opening of four new stores in June, one
each in Baton Rouge, La.; Oklahoma City, Okla.; Southhaven, Miss.; and
Lafayette, La. Additionally, a store in Ft. Wayne, Ind. was relocated during
June.
Shoe Carnival, Inc. expects to announce second quarter results on
August 17, 2000.
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 151 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 .
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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