Shoe Carnival Inc. today reported first-quarter 2016 earnings and sales that were better than the comparable period but still missed market watchers’ expectations.
The Evansville, Ind.-based family-footwear retailer said its Q1 net income advanced 3 percent, to $10.7 million, or 56 cents per diluted share, from $10.4 million, or 52 cents per diluted share in the year-ago same period. Analysts, who have been bullish on the company for the past few quarters, placed their diluted earnings per share bets a few cents higher, at 57 cents per share.
Q1 revenues gained 3 percent, to $260 million, compared with $253 million in the prior year’s same period. Analysts were expecting revenues of $264 million.
The firm said its comparable store sales improved for the seventh consecutive quarter, advancing 2.7 percent in Q1. Market watchers had predicted a 4 percent comp gain.
“We are pleased with our start to fiscal 2016 as we continue to benefit from our multi-channel sales initiative,” Cliff Sifford, Shoe Carnival’s president and CEO, said in a release after market close. “Our record first quarter sales and diluted EPS were driven by continued strength in athletic footwear for the entire family and tight expense control.”
Weather also played a key role in the company’s performance during the quarter, Sifford noted. Warm temperatures helped drive sales early in Q1, while cold weather impacted the retailer’s Easter holiday performance. The latter end of the quarter saw more seasonal conditions return, which gave a last-minute nudge to revenues, according to the CEO.
The company reiterated its FY16 guidance and continues to expect net sales in the range of $1.007 billion to $1.027 billion, with a comparable store sales increase in the range of 1 to 3 percent. Diluted EPS for the fiscal year are expected to be in the range of $1.58 to $1.65, representing an increase of 9 to 14 percent over the previous year.
“As we enter the second quarter, we expect to further benefit from our assortment of sandalized footwear as warmer weather arrives in addition to the continued strength in athletic footwear,” Sifford said.