EVANSVILLE, Ind., Aug. 17 /PRNewswire/ -- Shoe Carnival, Inc.
(Nasdaq: SCVL) a leading retailer of value-priced footwear and accessories,
today announced earnings and sales for the quarter ended July 29, 2000. Net
earnings in the second quarter of fiscal 2000 were $1.7 million, or $.14 per
share on a diluted basis, compared with net earnings of $3.3 million, or
$.24 per share on a diluted basis, in the second quarter of fiscal 1999.
Net sales for the second quarter increased 15 percent to $95.6 million
from $83.2 million last year. Comparable store sales decreased by 2.1 percent
for the 13-week period. As a percentage of sales, gross profit margins for the
second quarter of 2000 were 28.6 percent compared with last year's record
results of 30.2 percent. Selling, general and administrative expenses, as a
percent of sales, increased to 24.8 percent from 23.4 percent in the second
quarter of 1999.
Net earnings for the first half of 2000 were $5.2 million, or $.40 per
share on a diluted basis, compared with net earnings of $7.3 million, or
$.54 per share on a diluted basis, last year. Net sales increased 18.4 percent
to $191 million for the first six months from sales of $161.3 million last
year. Comparable store sales decreased 0.4 percent for the six month period.
As a percent of sales, gross profit margins for the first six months of 2000
were 29.1 percent compared with 31.0 percent for the first six months of 1999.
Selling, general and administrative expenses, as a percent of sales, increased
to 23.9 percent in the first six months of 2000 from 23.2 percent last year.
Mark Lemond, president and chief executive officer stated, "We are
disappointed in the results for the first half. Lack of new footwear fashion
and an unsettled retail environment effected not only us, but also the entire
industry. With heavy discounting at the end of the season, we ended July with
inventories well positioned for the important back-to-school selling season.
While it's too early to predict the results for the third quarter, the back-
to-school selling period has started off very strong. This is in-line with
the general expectation of a resurgence in the athletic footwear category."
During the first half of 2000, 16 new stores were opened, 10 of which were
opened in the second quarter. An additional 16 stores are expected to be
opened in the second half of 2000 bringing the total new stores to 32 for the
year. Additionally, one store will be closed in September 2000. A charge for
the closing costs of approximately $.01 per share is included in second
quarter net earnings.
Mr. Lemond continued, "Despite the strong start to the back-to-school
selling period, we have elected to be more conservative in our store opening
program in 2001 due to the uncertain state of the overall retailing
environment and the effect rising interest rates may have on consumer
spending. Therefore, we currently expect to open approximately 15 stores in
the year 2001. We may elect however to resume a more aggressive store opening
program in the second half of next year if economic conditions warrant it."
During the second quarter of 2000, the Company repurchased 620,600 shares
of its common stock for $4.0 million. In August 2000, the repurchase program
was completed after acquiring 409,750 shares for $2.5 million. Total common
shares repurchased under the program since its inception on January 7, 2000
were 1,445,350 shares at an aggregate cost of $10 million.
The ten stores opened during the second quarter included locations in:
City Market/Stores
Waco, TX Waco, 1
Nashville, TN Nashville, 7
Jacksonville, NC Greenville, 2
Baton Rouge, LA Baton Rouge, 1
Oklahoma City, OK Oklahoma City, 1
Southaven, MS Memphis, 4
Lafayette, LA Lafayette, 1
Jackson, MS Jackson, 1
Lake Charles, LA Lake Charles, 1
Greenville, SC Greenville, 4
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 155 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
July 29, July 31, July 29, July 31,
2000 1999 2000 1999
Net sales $95,611 $83,206 $191,016 $161,317
Cost of sales (including
buying, distribution
and occupancy costs) 68,220 58,112 135,432 111,365
Gross profit 27,391 25,094 55,584 49,952
Selling, general and
administrative expenses 23,736 19,464 45,679 37,432
Operating income 3,655 5,630 9,905 12,520
Interest expense 769 190 1,348 340
Income before income taxes 2,886 5,440 8,557 12,180
Income taxes 1,140 2,176 3,380 4,872
Net income $1,746 $3,264 $5,177 $7,308
Net income per share:
Basic $.14 $.25 $.41 $.55
Diluted $.14 $.24 $.40 $.54
Average shares outstanding:
Basic 12,543 13,293 12,758 13,249
Diluted 12,583 13,734 12,880 13,639
SHOE CARNIVAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
ASSETS
July 29, January 29, July 31
2000 2000 1999
+
Current Assets:
Cash and cash equivalents $3,358 $1,675 $2,724
Accounts receivable 631 694 706
Merchandise inventories 123,791 104,730 92,637
Deferred income tax benefit 701 876 821
Other 1,794 1,168 1,965
Total Current Assets 130,275 109,143 98,853
Property and equipment-net 56,796 53,710 49,759
TOTAL ASSETS $187,071 $162,853 $148,612
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $32,549 $33,817 $28,770
Accrued and other liabilities 7,038 6,266 5,901
Current portion of
long-term debt 786 714 733
Total Current Liabilities 40,373 40,797 35,404
Long-term debt 45,749 22,338 17,074
Deferred lease incentives 3,079 3,077 2,980
Deferred income taxes 3,693 3,296 2,163
TOTAL LIABILITIES 92,894 69,508 57,621
SHAREHOLDERS' EQUITY 94,177 93,345 90,991
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $187,071 $162,853 $148,612
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 and Chief Financial
Officer and Treasurer, both of Shoe Carnival, Inc., 812-867-4034
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