EVANSVILLE, Ind., Aug. 18 /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 July 31, 1999.
Net earnings increased 16 percent to $3.3 million in the second quarter of
fiscal 1999 from $2.8 million in the second quarter of fiscal 1998. Earnings
per share on a diluted basis increased 14 percent to $.24 from $.21 last year.
Net sales for the second quarter increased 22 percent to $83.2 million
from $68.1 million last year. Comparable store sales increased by 0.6 percent
for the 13-week period. As a percentage of sales, gross profit margins for
the second quarter of 1999 were consistent with the prior year's record
results of 30.2%. Selling, general and administrative expenses, as a percent
of sales, increased to 23.4 percent from 23.1 percent in the second quarter of
1998 primarily due to higher advertising costs.
Net earnings for the first half of 1999 increased 23 percent to $7.3
million from $5.9 million last year. Earnings per share on a diluted basis
increased 23 percent to $.54 from $.44 last year. Net sales increased 21
percent to $161.3 million for the first six months from sales of $133.8
million last year. Comparable store sales increased 2.0 percent for the six
month period. As a percent of sales, gross profit margins for the first six
months of 1999 increased to 31.0 percent from 30.8 percent for the first six
months of 1998. Selling, general and administrative expenses, as a percent of
sales, were 23.2 percent in the first six months of 1999, which was unchanged
from the prior year in spite of opening five more stores than were opened in
the prior year period. The resulting operating margin for the first half
improved to 7.8 percent from 7.6 percent a year ago.
Mark Lemond, president and chief executive officer stated, "Continued
increases in sales along with gross profit margins consistent with record
levels achieved a year ago resulted in the fourteenth consecutive quarter of
double digit net income and earnings per share growth. The primary driver of
the quarterly sales increase was the contribution from the 24 net new stores
opened during the past four quarters.
"During the second quarter of 1999 twelve stores were opened which
represents the fastest quarterly store growth in the history of the Company.
Fifteen stores have been added during the year. We continue to balance new
store growth between the opening of new markets and the fill-in of existing
markets. Nine stores have been added to existing markets, three alone in
Chicago, and six new markets have been opened. This balanced approached of
filling-in existing markets as we grow allows us to more efficiently utilize
our advertising and field management while continuing to expand
geographically."
The 12 stores opened during the quarter included locations in:
Montgomery, Ala.
Fort Smith, Ark.
North Little Rock, Ark.
Daytona Beach, Fla.
Douglasville, Ga.
Calumet City, Ill.
Terre Haute, Ind.
Louisville, Ky.
Holland, Mich.
Gulfport, Miss.
Meridian, Miss.
Hickory, N.C.
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 under performing stores; and other factors described in the Company's form
10-K for fiscal year 1998.
Shoe Carnival is a chain of 128 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 26 Weeks Ended
July 31, August 1, July 31, August 1,
1999 1998 1999 1998
Net sales $83,206 $68,104 $161,317 $133,798
Cost of sales
(including buying,
distribution and
occupancy costs) 58,112 47,554 111,365 92,574
Gross profit 25,094 20,550 49,952 41,224
Selling, general and
administrative
expenses 19,464 15,740 37,432 31,049
Operating income 5,630 4,810 12,520 10,175
Interest expense 190 106 340 280
Income before
income taxes 5,440 4,704 12,180 9,895
Income taxes 2,176 1,882 4,872 3,958
Net income $3,264 $2,822 $7,308 $5,937
Net income per share:
Basic $.25 $.21 $.55 $.45
Diluted $.24 $.21 $.54 $.44
Average shares
outstanding:
Basic 13,293 13,149 13,249 13,128
Diluted 13,734 13,539 13,639 13,472
SHOE CARNIVAL, INC.
CONDENSED BALANCE SHEETS
(In thousands)
(Unaudited)
ASSETS
July 31, January 30, August 1,
1999 1999 1998
Current Assets:
Cash and cash
equivalents $2,724 $1,944 $2,550
Accounts receivable 706 567 721
Merchandise inventories 92,637 75,390 83,274
Deferred income tax benefit 821 782 802
Other 1,965 1,222 1,232
Total Current Assets 98,853 79,905 88,579
Property and equipment-net 49,759 40,856 34,639
TOTAL ASSETS $148,612 $120,761 $123,218
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $28,770 $25,698 $27,614
Accrued and other
liabilities 5,901 5,757 5,806
Current portion of
long-term debt 733 782 681
Total Current Liabilities 35,404 32,237 34,101
Long-term debt 17,074 1,361 7,549
Deferred lease incentives 2,980 2,424 1,478
Deferred income taxes 2,163 2,072 1,924
TOTAL LIABILITIES 57,621 38,094 45,052
SHAREHOLDERS' EQUITY 90,991 82,667 78,166
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $148,612 $120,761 $123,218
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, of Shoe Carnival, 812-867-4034
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