Shoe Carnival Inc. fell short of second-quarter estimates as bad weather kept shoppers away from stores.
For the period ended July 30, the Evansville, Ind.-based company earned a net income of $2.7 million, or 20 cents a share, a 34 percent decline from net earnings of $4.1 million, or 32 cents, in the same period a year ago.
Net sales advanced almost 1 percent to $166.7 million, from $165.4 million, although comparable-store sales decreased 1.1 percent for the period.
The retailer missed consensus estimates, which called for earnings per share of 30 cents on revenue of $171.3 million, as polled by Yahoo Finance.
Gross profit margin slipped 50 basis points to 27.8 percent, while selling, general and administrative increased 60 basis points to 25.3 percent.
“Our performance for the quarter fell short of our expectations, primarily as a result of a decline in customer traffic at our stores,” Mark Lemond, president and CEO of Shoe Carnival, said in a written statement. “We believe this was due, in part, to inclement weather conditions in many of our markets early and late in the quarter. We were also up against record-setting second-quarter results from last year.”
But Lemond added shopper traffic is improving in the back-to-school period, with comparable-store sales increasing 6 percent this month.
Lemond also said he is “very excited about the upcoming launch of our e-commerce site, [which] will offer Shoe Carnival a tremendous opportunity for national brand exposure and long-term sales growth.”
Shoe Carnival ended the quarter with $44.1 million in cash and cash equivalents, and no long-term debt.
The firm said it expects third-quarter revenue to range between $217 and $219 million, and EPS to come in between 77 and 81 cents.