EVANSVILLE, Ind.--(BUSINESS WIRE)--Jan. 5, 2012--
Shoe Carnival, Inc. (Nasdaq: SCVL) a leading retailer of value-priced
footwear and accessories, today announced updated sales and earnings
guidance for the 13-week fourth quarter ended January 28, 2012. The
Company does not plan to provide preliminary financial information in
the future other than in unique circumstances, or in the event of a
material event that requires disclosure.
The Company expects fourth quarter net sales to be in the range of $181
to $182 million with a comparable store sales decline in the range of
3.0 to 3.5 percent. Earnings per diluted share in the fourth quarter of
fiscal 2011 are expected to be in the range of $0.20 to $0.23. In the
fourth quarter of fiscal 2010, comparable store sales increased 4.6
percent and earnings per diluted share were $0.33.
For fiscal 2011, the Company expects net sales to be in the range of
$761 to $762 million and comparable store sales to increase
approximately 0.7 percent. Earnings per diluted share for fiscal 2011
are expected to be in the range of $1.92 to $1.95. For fiscal 2010,
comparable store sales increased 8.2 percent and earnings per diluted
share were $2.05.
Speaking on the results for the quarter, Mark Lemond, president and
chief executive officer, said, “Our fourth quarter sales and earnings
results have been significantly affected by a decline in the sale of
boots, particularly women’s boots. Our boot sales in the first two
months of the fourth quarter last year increased 20 percent on a
comparable basis, whereas this year boot sales have declined 15 percent
in our comparable stores. We attribute this decline in large part to
unseasonably warm weather. Additionally, due to increased promotional
activity focused on boot sales, we expect the gross profit margin for
the fourth quarter to decline by approximately 170 basis points.”
Mr. Lemond continued, “Our expected annual earnings will still represent
the second highest in the Company’s history despite lower than
anticipated fourth quarter results. Going forward, we remain intently
focused on accelerating our store growth and the potential that new
stores represent for long-term growth in sales and earnings. In fiscal
2012, we expect to open 30 stores, including investments in two major
new markets – Dallas, TX, and Puerto Rico.”
The Company will release full fourth quarter financial results on
Wednesday, March 21, 2012, after market close. Later that day, the
Company will host a conference call with management at 4:30 p.m. Eastern
time to discuss fourth quarter results and provide first quarter fiscal
2012 sales and earnings guidance.
About Shoe Carnival
Shoe Carnival is a chain of 328 footwear stores located in the Midwest,
South and Southeast. In addition to its retail stores, the Company also
operates an internet retailing site at shoecarnival.com. 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 LLC under the symbol SCVL. Shoe Carnival’s press releases
and annual report are available on the Company’s website at www.shoecarnival.com.
Cautionary Statement Regarding Forward-Looking Information
This press release contains forward-looking statements, within the
meaning of the Private Securities Litigation Reform Act of 1995, 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; the effects and duration of economic downturns and unemployment
rates; changes in the overall retail environment and more specifically
in the apparel and footwear retail sectors; our ability to generate
increased sales at our stores; 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; the impact
of disruptions in our distribution or information technology operations;
the effectiveness of our inventory management; the impact of hurricanes
or other natural disasters on our stores, as well as on consumer
confidence and purchasing in general; risks associated with the
seasonality of the retail industry; our ability to successfully execute
our growth strategy, including the availability of desirable store
locations at acceptable lease terms, our ability to open new stores in a
timely and profitable manner and the availability of sufficient funds to
implement our growth plans; higher than anticipated costs associated
with the closing of underperforming stores; our ability to successfully
implement an e-commerce business; the inability of manufacturers to
deliver products in a timely manner; changes in the political and
economic environments in the People’s Republic of China, Brazil, Italy
and East Asia, where the primary manufacturers of footwear are located;
the impact of regulatory changes in the United States and the countries
where our manufacturers are located; and the continued favorable trade
relations between the United States and China and the other 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.
Source: Shoe Carnival, Inc.
Shoe Carnival, Inc.
Mark L. Lemond
and Chief Executive Officer
W. Kerry Jackson
Vice President, Chief Financial Officer and Treasurer