Shoe Carnival Inc. missed analyst estimates during the second quarter, and share prices slipped more than 7 percent in after-hours trading.
For the quarter ending Aug. 2, the firm announced net income of $2.6 million, or 13 cents per diluted share, a steep decline from the year-ago period’s reports of $5.8 million, or 29 cents per share. Analysts had predicted the retailer would end the quarter at 15 cents per share.
Net sales were $222.1 million, 2.6 percent above sales in the year-ago period of $216.4 million. Despite the increase, the company failed to meet analyst expectations of $225 million.
The Evansville, Ind.-based retailer also announced that same-store comps slipped 2.1 percent during the quarter. That said, executives indicated that back-to-school sales helped to boost comps during the remaining weeks in August.
The company also reported a cautiously optimistic back half for 2014, reporting earnings per diluted share of 53 to 64 cents, compared with 57 cents in the second half of 2013.
“The second quarter proved challenging as store traffic remained soft and consumers shopped closer to need,” said Cliff Sifford, president and CEO. “As a result, our comparable store sales turned positive in July as customers shopped Shoe Carnival’s broad selection of brand-name athletic and casual shoes at exceptional values for back-to-school.
Sifford added that despite the “choppy” sales environment, the company will continue investing toward its long-term sales and earnings growth. New developments include bringing e-commerce order fulfillment in-house and the launch of the retailer’s first-ever mobile app.
“With these two initiatives set to launch in the third quarter, we are aggressively moving forward in the evolution of the omnichannel shopping experience for our customer,” he said.