EVANSVILLE, Ind., Nov. 15 /PRNewswire/ -- Shoe Carnival, Inc.
(Nasdaq: SCVL) a leading retailer of value-priced footwear and accessories,
today announced record sales and earnings for the third quarter ended November
3, 2001. Net earnings in the third quarter increased to an all-time Company
record of $4.6 million compared with $3.8 million in the third quarter of
fiscal 2000. Earnings per share on a diluted basis increased to $.37 per
share, also a Company record, from $.32 per share in last year's third
quarter.
Net sales for the third quarter increased 8.8 percent to $124.8 million
from $114.7 million last year. Comparable store sales increased by 2.5
percent for the 13-week period.
Gross profit margin for the third quarter was 29.5 percent compared to
29.6 percent last year. Selling, general and administrative expenses, as a
percentage of sales, decreased to 23.2 percent from 23.4 percent in the third
quarter of 2000. Interest costs decreased to $480,000 in the third quarter
from $782,000 last year due to lower interest rates. The effective income tax
rate decreased to 37.5 percent in the third quarter from 39.5 percent in the
third quarter last year.
Net earnings for the first nine months of 2001 were $11.4 million, or $.92
per share on a diluted basis, compared with net earnings of $9 million, or
$.71 per share on a diluted basis, last year. Net sales increased 16.4
percent to $356 million for the first nine months from sales of $305.7 million
last year. Comparable store sales increased 2.1 percent for the nine-month
period. The gross profit margin for the first nine months of 2001 was 29.2
percent compared with 29.3 percent for the first nine months last year.
Selling, general and administrative expenses, as a percent of sales, decreased
to 23.6 percent for the first nine months of 2001 from 23.7 percent for the
first nine months of 2000.
Mark Lemond, president and chief executive officer stated, "Shoe Carnival
again performed at a record-setting level during the third quarter. Quarterly
sales, net earnings and earnings per share were the highest in the Company's
history, surpassing our expectations in a continued difficult retail climate.
"Over the past five years, our store concept has gained wide acceptance in
the retail marketplace. Importantly, this has led to significantly improved
earnings. Because of this, Shoe Carnival has recently been recognized as a
leader in the footwear industry. In October, Shoe Carnival was recognized by
Forbes Magazine as one of "America's 200 Best Small Companies". More
recently, Shoe Carnival was named as the Chain Retailer of the Year by
Footwear News, the leading trade publication in the footwear industry."
The Company completed the store openings for the year with the opening of
five stores in the third quarter. Eighteen stores were opened during fiscal
2001 bringing the total number of stores operated by the Company to 183.
The five stores opened during the third quarter included locations in:
City Market/Stores
Chattanooga, TN Chattanooga, 2
Temple, TX Waco, 4
Anderson, SC Greenville, 5
Amarillo, TX Amarillo, 1
Oklahoma City, OK Oklahoma City, 2
Mr. Lemond continued, "Our earnings growth over the last five years has
been fueled by the expansion of our chain. We expect to continue this growth
next year with the addition of at least 20 to 25 new stores, net of any store
closings. Our retail concept continues to prove itself in a tough retail
climate and we expect the improved earnings trend to continue through the
fourth quarter of 2001 and into fiscal 2002."
Today, at 2:00 p.m. ET, the Company will host a conference call to discuss
the third 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 183 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/.
Financial Tables Follow
SHOE CARNIVAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share)
(Unaudited)
13 Weeks Ended 39 Weeks Ended
Nov. 3, Oct. 28, Nov. 3, Oct. 28,
2001 2000 2001 2000
Net sales $124,778 $114,710 $355,950 $305,726
Cost of sales (including
buying, distribution
and occupancy costs) 87,965 80,781 251,927 216,213
Gross profit 36,813 33,929 104,023 89,513
Selling, general and
administrative expenses 28,932 26,858 83,844 72,537
Operating income 7,881 7,071 20,179 16,976
Interest expense 480 782 1,911 2,130
Income before income taxes 7,401 6,289 18,268 14,846
Income taxes 2,776 2,484 6,851 5,864
Net income $4,625 $3,805 $11,417 $8,982
Net income per share:
Basic $.38 $.32 $.95 $.72
Diluted $.37 $.32 $.92 $.71
Average shares outstanding:
Basic 12,195 11,977 12,077 12,498
Diluted 12,513 11,989 12,431 12,598
SHOE CARNIVAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
ASSETS
November 3, February 3, October 28,
2001 2001 2000
Current Assets:
Cash and cash equivalents $3,207 $3,227 $3,071
Accounts receivable 1,660 1,067 1,006
Merchandise inventories 137,289 123,035 128,770
Deferred income tax benefit 703 728 613
Other 2,055 1,434 1,788
Total Current Assets 144,914 129,491 135,248
Property and equipment-net 59,349 57,860 58,458
TOTAL ASSETS $204,263 $187,351 $193,706
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $33,242 $33,030 $34,949
Accrued and other liabilities 10,675 7,896 10,083
Current portion of
long-term debt 945 874 813
Total Current Liabilities 44,862 41,800 45,845
Long-term debt 41,176 41,137 45,142
Deferred lease incentives 4,126 3,651 3,243
Deferred income taxes 4,191 4,386 3,946
Other 275 64 0
TOTAL LIABILITIES 94,630 91,038 98,176
SHAREHOLDERS' EQUITY 109,633 96,313 95,530
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $204,263 $187,351 $193,706
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, +1-812-867-4034
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