EVANSVILLE, Ind., Nov. 17 /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 October 30,
1999. Net earnings increased 17 percent to $4.2 million in the third quarter
of fiscal 1999 from $3.6 million in the third quarter of fiscal 1998.
Earnings per share on a diluted basis increased 15 percent to $.31 from $.27
last year.
Net sales for the third quarter increased 23 percent to $94.2 million from
$76.4 million last year. Comparable store sales increased by 2 percent for
the 13-week period. As a percentage of sales, gross profit margins were
31.3 percent in the third quarter compared to 31.7 percent last year. Selling,
general and administrative expenses, as a percentage of sales, decreased to
23.5 percent from 23.7 percent in the third quarter of 1998.
Net earnings for the first nine months of 1999 increased 21 percent to
$11.5 million from $9.6 million last year. Earnings per share on a diluted
basis increased 20 percent to $.85 from $.71 last year. Net sales increased
22 percent to $255.5 million for the first nine months from sales of
$210.2 million last year. Comparable store sales increased 2.1 percent for
the nine month period. As a percentage of sales, gross profit margins for the
first nine months of 1999 were consistent with the prior year at 31.1 percent.
Selling, general and administrative expenses, as a percent of sales, decreased
to 23.3 percent for the first nine months of 1999 from 23.4 percent for the
first nine months of 1998.
Mark Lemond, president and chief executive officer stated, "Our third
quarter results represent the highest quarterly sales and net earnings in the
Company's history despite a soft footwear retail market. These record-setting
results are being fueled by our aggressive store expansion. Over the past two
years we have opened 48 new stores and closed one. This represents in excess
of 20 percent store growth in each of 1998 and 1999.
"Our gross profit margin for the third quarter was reduced as a result of
higher distribution costs. To accommodate future store growth we recently
doubled the size of our distribution center and we are now in the process of
completing the replacement of virtually all of the equipment and software.
The higher distribution costs, as a percentage of sales, resulted from costs
associated with the distribution center expansion and increased costs
associated with higher merchandise receipts in the third quarter relative to
the prior year.
"Including the three stores opened in early November, we have opened 28
stores and added 323,000 square feet of retail space this year. To date, the
1999 new stores have collectively outperformed our planned expectations. We
should end the year with 138 stores and 1.6 million square feet of retail
space after closing one store in January 2000. In fiscal 2000, we anticipate
continuing our 20 plus percent store growth strategy with the planned addition
of between 30 and 35 stores."
The 13 stores opened during the third and fourth quarters included
locations in:
City Market/Stores
Oviedo, FL (Orlando, 3)
St. Petersburg, FL (Tampa, 3)
Fayetteville, GA (Atlanta, 8)
Newnan, GA (Atlanta, 8)
Gurnee, IL (Chicago, 10)
Chesterfield, MO (St. Louis, 8)
Tupelo, MS
Rocky Mount, NC (Raleigh, 2)
Charleston, SC
Murfreesboro, TN (Nashville, 6)
Katy, TX
Tyler, TX
Danville, VA
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 1998.
Shoe Carnival is a chain of 139 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 39 Weeks Ended
Oct. 30, Oct. 31, Oct. 30, Oct. 31,
1999 1998 1999 1998
Net sales $94,223 $76,442 $255,540 $210,240
Cost of sales (including
buying, distribution and
occupancy costs) 64,768 52,225 176,133 144,799
Gross profit 29,455 24,217 79,407 65,441
Selling, general and
administrative expenses 22,164 18,078 59,596 49,127
Operating income 7,291 6,139 19,811 16,314
Interest expense 237 106 577 386
Income before income taxes 7,054 6,033 19,234 15,928
Income taxes 2,821 2,413 7,693 6,371
Net income $4,233 $3,620 $11,541 $9,557
Net income per share:
Basic $.32 $.27 $.87 $.73
Diluted $.31 $.27 $.85 $.71
Average shares outstanding:
Basic 13,333 13,170 13,277 13,142
Diluted 13,564 13,380 13,619 13,432
SHOE CARNIVAL, INC.
CONDENSED BALANCE SHEETS
(In thousands)
(Unaudited)
ASSETS
Oct. 30, Jan. 30, Oct. 31,
1999 1999 1998
Current Assets:
Cash and cash equivalents $2,582 $1,944 $2,036
Accounts receivable 1,159 567 710
Merchandise inventories 101,983 75,390 79,522
Deferred income tax benefit 546 782 797
Other 1,287 1,222 995
Total Current Assets 107,557 79,905 84,060
Property and equipment-net 52,628 40,856 37,806
TOTAL ASSETS $160,185 $120,761 $121,866
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $31,121 $25,698 $19,881
Accrued and other liabilities 7,650 5,757 6,544
Current portion of long-term debt 715 782 863
Total Current Liabilities 39,486 32,237 27,288
Long-term debt 20,003 1,361 8,843
Deferred lease incentives 3,148 2,424 1,926
Deferred income taxes 2,245 2,072 1,991
TOTAL LIABILITIES 64,882 38,094 40,048
SHAREHOLDERS' EQUITY 95,303 82,667 81,818
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $160,185 $120,761 $121,866
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, both of Shoe Carnival, 812-867-4034
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