“We experienced strong athletic and women’s fashion boot sales throughout the third quarter, which helped drive our fifth consecutive quarter of positive comparable-store sales and on-plan earnings performance,” Shoe Carnival President and CEO Cliff Sifford said in a release. “We also benefited from our multi-channel sales initiatives, which drove higher quarterly conversion rates, average sales per transaction and units per transaction.”
While its comp growth and accelerated revenues were impressive, the retail chain’s Q3 profit declined 13.2 percent, and management suggested that more deceleration could result from warm temperatures in early Q4.
“As we enter the fourth quarter, unseasonably warm weather has impacted our boot sales and overall comparable-store sales. However, we are confident that as more seasonal weather arrives, we will once again see positive reaction to our strong assortment of boots for the entire family,” Clifford said.
Net Income: Net income for the third quarter, ending Oct. 31, 2015, declined 13.2 percent, to $9.4 million, from $10.8 million in the comparable quarter.
EPS: Earnings per diluted share shed 7 cents year-over-year, to 47 cents, from 54 cents in the comparable quarter.
Net Revenue: Net sales increased 6 percent, to $269.7 million, compared with $254.7 million in the third quarter of 2014.
Hit, Miss or Beat: Market watchers polled by Yahoo Finance had predicted revenue of $264.3 million and EPS of 47 cents.
Looking Ahead: The company adjusted it expectations as follows: It expects fiscal 2015 net sales to be in the range of $980 million to $987 million (prior guidance: $977 million to $991 million) with a comparable-store sales increase of 3 percent (prior range: 1.5 percent to 3 percent). Earnings per diluted share for the fiscal year are expected to be in the range of $1.38 to $1.43 (prior range: $1.42 to $1.48).