EVANSVILLE, Ind., Oct. 1 /PRNewswire-FirstCall/ -- Shoe Carnival, Inc.
(Nasdaq: SCVL), a leading retailer of value-priced footwear and accessories,
today announced that due to a drop in customer traffic in September, sales for
the month are substantially below its previous expectations. Consequently,
the Company has revised its sales and earnings expectations for the third and
fourth quarters of the fiscal year 2002.
Mark L. Lemond, president and chief executive officer commented, "After
the first two weeks in September, customer traffic patterns have declined
significantly on a year-over-year basis. The sales trend weakened last week,
and particularly this past weekend, relative to our plan. We now expect a
decline in comparable store sales of between 5 to 6 percent for the month of
September. Accordingly, we are projecting a decline in third quarter
comparable store sales of between 2 and 2.5 percent. Additionally, we now
expect fourth quarter comparable store sales of between flat and negative 2
percent."
The Company now expects earnings for the third quarter to be between
$.32 and $.34 per share. Earnings for the fourth quarter are expected to be
between $.12 and $.14 per share. Consequently, earnings for the year are now
expected to be in the range of $1.15 to $1.19 per share.
Mr. Lemond continued, "Despite the downturn in sales, our merchants have
done a great job controlling inventory levels. We expect to end the month of
September and the third quarter with inventories flat to slightly down on a
store-for-store basis compared to last year. We have positioned Shoe
Carnival, from both a balance sheet and inventory perspective, to take
advantage of opportunistic product purchases in October and the fourth
quarter."
The Company will host a conference call to discuss the information
contained in this press release on Wednesday, October 2, 2002, at 8:30 a.m.
Eastern time. To participate in the conference call, please dial (800) 289-
0437 followed by conference call I.D. number 706242. A replay of the
conference call will be available approximately 2 hours after the conclusion
of the conference call by dialing 888-203-1112 followed by conference call
I.D. number 706242. The telephone replay will be available for 24 hours.
This press release contains forward-looking statements that involve a
number of risks and uncertainties. A number of factors could cause our actual
results, performance, achievements or industry results to be materially
different from any future results, performance or achievements expressed or
implied by these forward-looking statements. These factors include, but are
not limited to: general economic conditions in the areas of the United States
in which our stores are located; changes in the overall retail environment and
more specifically in the apparel and footwear retail sectors; the potential
impact of national and international security concerns on the retail
environment; changes in our relationships with key suppliers; the impact of
competition and pricing; changes in weather patterns, consumer buying trends
and our ability to identify and respond to emerging fashion trends; risks
associated with the seasonality of the retail industry; the availability of
desirable store locations at acceptable lease terms and our ability to open
new stores in a timely manner; higher than anticipated costs associated with
the closing of underperforming stores; the inability of manufacturers to
deliver products in a timely manner; changes in the trade relationships
between the United States and countries which are the major manufacturers of
footwear.
In addition, these forward-looking statements necessarily depend upon
assumptions, estimates and dates that may be incorrect or imprecise and
involve known and unknown risks, uncertainties and other factors. Accordingly,
any forward-looking statements included in this press release do not purport
to be predictions of future events or circumstances and may not be realized.
Forward-looking statements can be identified by, among other things, the use
of forward-looking terms such as "believes," "expects," "may," "will,"
"should," "seeks," "pro forma," "anticipates," "intends" or the negative of
any of these terms, or comparable terminology, or by discussions of strategy
or intentions. Given these uncertainties, we caution investors not to place
undue reliance on these forward-looking statements, which speak only as of the
date hereof. We disclaim any obligation to update any of these factors or to
publicly announce any revisions to the forward-looking statements contained in
this press release to reflect future events or developments.
Shoe Carnival is a chain of 203 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 .
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 and Chief
Financial Officer of Shoe Carnival, Inc. +1-812-867-4034
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