EVANSVILLE, Ind., Aug. 16 /PRNewswire/ -- Shoe Carnival, Inc. (Nasdaq:
SCVL) a leading retailer of value-priced footwear and accessories, today
announced earnings and sales for the quarter ended August 4, 2001. Net
earnings in the second quarter of fiscal 2001 increased 43 percent to $2.5
million compared with net earnings of $1.7 million in the second quarter of
fiscal 2000. Diluted earnings per share also increased 43 percent to $.20 per
share from $.14 per share last year.
Net sales for the second quarter increased 19 percent to a second quarter
Company record of $114 million from $95.6 million last year. Comparable store
sales increased by 2.1 percent for the 13-week period.
Gross profit margin for the second quarter of 2001 was 28.3 percent
compared with 28.6 percent last year. Selling, general and administrative
expenses, as a percent of sales, decreased to 24.2 percent from 24.8 percent
in the second quarter of 2000. New store pre-opening costs incurred in the
second quarter of 2001 were $667,000, or 0.6 percent of sales, compared with
$785,000, or 0.8 percent of sales last year. Interest expense decreased to
$626,000 from $769,000 primarily due to a lower effective interest rate.
Net earnings for the first half of 2001 were $6.8 million, or $.55 per
share on a diluted basis, compared with net earnings of $5.2 million, or
$.40 per share on a diluted basis, last year. Net sales increased 21 percent
to $231.2 million for the first six months from sales of $191 million last
year. Comparable store sales increased 2.1 percent for the six-month period.
Gross profit margin for the first six months of 2001 was flat with last year
at 29.1 percent. Selling, general and administrative expenses, as a percent
of sales, decreased to 23.8 percent in the first six months of 2001 from 23.9
percent last year.
Mark Lemond, president and chief executive officer stated, "We are pleased
with the 43 percent increase in both net income and diluted earnings per share
for the second quarter. We continued to see a difficult retail environment
during the second quarter. This, combined with a poor sandal season, resulted
in a very promotional climate during the first half of the year. Despite
this, our diluted earnings per share of $.55 for the first six months of 2001
were the highest in the Company's history. We credit our success to our store
concept that offers value and entertainment to our customers and superior
execution by our merchandising and store management personnel.
"Importantly, our low cost operating structure allowed us the flexibility
during the second quarter to clean our inventories of slower selling seasonal
product with aggressive promotions and still achieve substantial year-over-
year increases in earnings. Our inventories are cleaner at the end of the
second quarter than they were last year at this time, especially in the men's,
women's and children's sandal classification."
During the first half of 2001, 13 new stores were opened, 10 of which were
opened in the second quarter. An additional five stores are expected to be
opened in the second half of 2001 bringing the total new stores to 18 for the
year.
The ten stores opened during the second quarter included locations in:
City Market/Stores
Toledo, OH Toledo (3)
Rossford, OH Toledo (3)
College Station, TX Waco (3)
Joplin, MO Joplin (1)
Corpus Christi, TX Corpus Christi (1)
Schereville, IN Chicago (13)
Wichita, KS Wichita (1)
Warner Robins, GA Macon (2)
Lubbock, TX Lubbock (1)
Arlington Heights, IL Chicago (13)
Today, at 2:00 p.m. Eastern time, the Company will host a conference call
to discuss the second quarter results. The public can listen to the live
webcast of the call by visiting Shoe Carnival's Corporate Information page at
http://www.shoecarnival.com . While the question-and-answer session will be available
to all listeners, questions from the audience will be limited to institutional
analysts and investors. A replay of the webcast will be available on our
website for two weeks beginning approximately two hours after the conclusion
of the conference call.
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 2000.
Shoe Carnival is a chain of 178 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 .
SHOE CARNIVAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share)
(Unaudited)
13 Weeks Ended 26 Weeks Ended
August 4, July 29, August 4, July 29,
2001 2000 2001 2000
Net sales $113,986 $95,611 $231,172 $191,016
Cost of sales
(including buying,
distribution and
occupancy costs) 81,732 68,220 163,962 135,432
Gross profit 32,254 27,391 67,210 55,584
Selling, general and
administrative
expenses 27,625 23,736 54,912 45,679
Operating income 4,629 3,655 12,298 9,905
Interest expense 626 769 1,431 1,348
Income before
income taxes 4,003 2,886 10,867 8,557
Income taxes 1,501 1,140 4,075 3,380
Net income $2,502 $1,746 $6,792 $5,177
Net income per share:
Basic $.21 $.14 $.57 $.41
Diluted $.20 $.14 $.55 $.40
Average shares outstanding:
Basic 12,066 12,543 12,018 12,758
Diluted 12,467 12,583 12,389 12,880
SHOE CARNIVAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
ASSETS
August 4, February 3, July 29,
2001 2001 2000
Current Assets:
Cash and cash equivalents $6,748 $3,227 $3,358
Accounts receivable 714 1,067 631
Merchandise inventories 142,528 123,035 123,791
Deferred income tax benefit 687 728 701
Other 2,871 1,434 1,794
Total Current Assets 153,548 129,491 130,275
Property and equipment-net 59,233 57,860 56,796
TOTAL ASSETS $212,781 $187,351 $187,071
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $42,535 $33,030 $32,549
Accrued and other liabilities 11,092 7,896 7,038
Current portion of
long-term debt 946 874 786
Total Current Liabilities 54,573 41,800 40,373
Long-term debt 45,798 41,137 45,749
Deferred lease incentives 4,229 3,651 3,079
Deferred income taxes 3,660 4,386 3,693
Other 192 64 0
TOTAL LIABILITIES 108,452 91,038 92,894
SHAREHOLDERS' EQUITY 104,329 96,313 94,177
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $212,781 $187,351 $187,071
SOURCE Shoe Carnival, Inc.
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Related links:
http://www.shoecarnival.com
Company News On-Call:
http://www.prnewswire.com/gh/cnoc/comp/127183.html
CONTACT:
Mark L. Lemond, President and Chief Executive
Officer, or W. Kerry Jackson, Senior Vice President, Chief
Financial Officer and Treasurer of Shoe Carnival, Inc.,
+1-812-867-4034
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