Income Up at Shoe Carnival

Income Up at Shoe Carnival
A Shoe Carnival store location.

Shoe Carnival Inc. topped estimates in the first quarter, earning 2 cents per share more than analysts expected.

For the period ended April 30, the retailer earned a net income of $9.9 million, or 75 cents a share, compared with $9.2 million, or 72 cents, in the same period a year ago.

Net sales advanced 5 percent to $198.5 million from $189.5 million. Comparable-store sales increased 3.4 percent, following a 13.1 percent rise in the previous corresponding quarter.

Analysts were looking for EPS of 73 cents on revenue of $199.3 million, as polled by Yahoo Finance.

“Athletic footwear, especially certain running styles, along with women’s sport-styled sandals, contributed significantly to our first-quarter comp-store sales increase of 3.4 percent,” Mark Lemond, president and CEO of Shoe Carnival, said in a statement.

“Our implementation team is making significant progress toward our goal of launching an e-commerce platform in the second half of this year, [representing a] new platform for sales growth,” he added.

While the firm’s gross profit margin slipped 20 basis points to 31.1 percent, tightly controlled expenses meant it decreased 40 basis points to 23 percent of total sales.

Shoe Carnival expects second-quarter EPS to come in between 27 cents and 31 cents a share.

The firm ended the period with $69 million in cash and cash equivalents, up from $51.8 million a year earlier, and no long-term debt.