Shoe Carnival Inc. is looking forward to the holiday season after a strong third quarter.
For the period ended Oct. 29, the Evansville, Ind.-based retailer earned a net income of $10.5 million, or 78 cents a share, in line with analysts’ estimates. That represents an increase of 15 percent from $9.1 million, or 70 cents, earned a year ago.
Net sales advanced 5 percent to $215.5 million, from $204.4 million, on the back of a comparable-store sales increase of 2.8 percent.
Mark Lemond, president and CEO, said that positive sales results early in the back-to-school season were partially offset by lower-than-expected store traffic trends in late September and October.
“We believe the change in sales trends throughout the third quarter reflects the impact of an unusually warm fall sales season as compared to last year. As a result, we expect our sales trends will strengthen throughout the fourth quarter as the weather becomes more seasonal,” he said. “As we progress through the holiday sales season, we believe Shoe Carnival is well positioned with a compelling assortment of family footwear and we expect our competitive pricing will resonate well with value-oriented consumers.”
Shoe Carnival expects full-year revenue to be between $767 million and $770 million, buoyed by a 1.2 percent to 1.7 percent increase in comps. Full-year earnings per share are expected to come in between $2.05 and $2.08.
The firm ended the quarter with $53 million in cash and cash equivalents, and no debt.