Shoe Carnival Inc.’s shares remain in the red today after the firm posted third-quarter results, after the market close Monday, that missed analysts’ forecasts.
As of 10:40 a.m. ET today, the family footwear retailer’s stock shed nearly 12 percent, to $26.80, as investors also grapple with the company’s downward-adjusted outlook.
Shoe Carnival’s third-quarter net income advanced 3.2 percent year-over-year, to $9.7 million, or 54 cents per diluted share, but missed estimates for earnings per diluted share of 56 cents.
Revenues climbed 2 percent year-over-year to $274.5 million but also failed to meet forecasts, which had predicted that revenues would hit $278.3 million.
Shoe Carnival president and CEO Cliff Sifford blamed slower sales in the company’s seasonal merchandise — which offset gains in other categories — for softer profit and sales during the quarter.
“As the weather continued to be unseasonably warm, our sales in boots for the family declined in the low teens for the two-month period of September and October combined,” Sifford said during the company’s third-quarter conference call. “Over the same time period, sandal sales were up in the 20 percent and athletic sales were up in the low singles, both on a comparable basis. The increase in those two footwear categories was not enough to overcome the decrease in boots, resulting in comparable-store sales decrease for the quarter.”
The company’s third-quarter comparable-store sales were down less than 1 percent during the quarter.
Looking ahead, Shoe Carnival now expects full-year net sales in the range of $1.002 billion to $1.006 billion, with a comparable store sales increase ranging from 0.5 percent to 0.9 percent. Earnings per diluted share are expected to be in the range of $1.46 to $1.51. (Previously, the firm predicted full-year net sales in the range $1.012 billion to $1.016 billion; a comparable store sales increase in the range of 1.5 percent to 2 percent; and diluted earnings per share in the range of $1.58 to $1.65.)