Shoe Carnival Hits Q2 Profits, Misses Revenue Target

shoe-carnival-store
A Shoe Carnival storefront.
FN Archives.

Evansville, Ind.-based Shoe Carnival Inc. reported second-quarter earnings for the period ending Aug. 1, 2015. The results were mixed, with the company handily beating Wall Street profit predictions but missing revenue expectations.

“Our strong quarterly earnings were driven by a combination of higher merchandise margins and lower advertising expenses. Comparable-store sales were in line with our expectations, as the solid start to the quarter was muted by an anticipated shift in tax-free holidays to the third quarter of this year from the second quarter of fiscal 2014. We believe our assortment of branded family footwear, favorable inventory position, and our multichannel initiatives positioned us well to capture the robust back-to-school sales, with our August comparable-store sales up by high single digits,” said Cliff Sifford, president and CEO of Shoe Carnival.

Here are the key takeaways of the report.

Net Income: The company reported net income of $4.8 million, which was nearly double that of the year-ago period, when Shoe Carnival reported profits of $2.6 million.

EPS: The firm reported diluted earnings per share this quarter of 24 cents, well above the analyst-predicted 18 cents. In the year-ago period, Shoe Carnival reported diluted shares of 13 cents.

Net Revenue: Sales for the quarter rose 2.6 percent from the year-ago period. For the quarter ending Aug.1, sales were $227.8 million, up from $222.1 million in 2014. Sales for the quarter fell below expectations. Analysts polled by Yahoo Finance had predicted $228.3 million in sales.

Hit, Miss or Beat:  Shoe Carnival beat profit expectations but missed sales forecasts by Wall Street analysts.

Looking Ahead: The company reaffirmed its guidance for the year, expecting fiscal 2015 net sales to range from $977 million to $991 million, with comparable-store sales increasing 1.5 percent to 3 percent. EPS are expected to range from $1.42 to $1.48.