Shoe Carnival Inc.’s second-quarter earnings were flat, but came in above analysts’ expectations.
For the period ended July 28, net income at the Evansville, Ind.-based retailer was $2.9 million, an increase of 5.3 percent over $2.7 million in the second quarter of 2011. Earnings per share remained unchanged at 14 cents.
Revenue advanced 9.3 percent to $182.2 million, from $166.7 million the previous year, on the back of a 3 percent increase in comparable-store sales. Analysts were expecting EPS of 11 cents on revenue of $182.1 million, as polled by Yahoo Finance.
Mark Lemond, Shoe Carnival’s president and CEO, said in a statement the results exceeded the high end of the firm’s guidance.
“We are in the midst of a strong athletic footwear cycle and customers continue to respond well to our athletic product assortment. Our sales increase, combined with a consistent emphasis on controlling inventory, helped us generate a higher-than-anticipated merchandise margin for the quarter,” Lemond said.
He added, “The back-to-school season represents a key sales period for us. Comparable-store sales have increased approximately 6 percent to date in the third quarter as compared to the same period last year.”
Shoe Carnival now expects third-quarter net sales to be in the range of $240 million to $245 million, with a comp-store sales increase in the range of 4 percent to 6 percent.
EPS is projected to come in between 55 cents and 60 cents, while analysts expect 57 cents.
The firm ended the period with $52.9 million in cash and cash equivalents, up from $44 million the same time a year ago, and no debt.