Shoe Carnival Inc. today reported fourth-quarter earnings that topped expectations while sales were roughly in line.
The Evansville, Ind.-based family footwear retailer posted a net loss of $920,000, or a loss of 5 cents per diluted share. But its adjusted net income, at $1.3 million, or 7 cents per diluted share, handily topped forecasts for earnings per diluted share of 4 cents.
Sales increased 0.2 percent, to $234 million, shy of Wall Street’s prediction for sales of $235 million. Comparable store sales decreased 1.2 percent.
“Our comparable stores sales performance was in-line with the updated expectations we provided in January and our gross profit margin came in better than we anticipated,” said Cliff Sifford, Shoe Carnival’s president and CEO, in a release. “Our team took decisive actions to promote our seasonal boot footwear to ensure we ended 2016 in a clean inventory position. We believe the strong athletic footwear cycle we experienced during the year will continue into 2017 and we are pleased with the early results from our casual sandal footwear.”
Shoe Carnival ended the quarter with its inventory down 6.8 percent on a per-store basis.
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For the full year, the firm’s revenues climbed 1.7 percent, to $1 billion while profits tumbled more than 18 percent, to $23.5 million, or $1.28 per diluted share. Adjusted profit was $25.7 million, or $1.40 per diluted share.
“Looking ahead, we believe we are well positioned to execute on our strategic initiatives,” Sifford said. “We have the financial flexibility with the strength of our balance sheet and cash flow to enhance value for shareholders by investing in our business and through our existing dividend and share repurchase programs.”
Shoe Carnival expects its fiscal 2017 net sales to be in the range of $1.028 billion to $1.040 billion, with comparable store sales flat to up low single digits. Earnings per share are expected to be in the range of $1.45 to $1.54.
As of 4:30 p.m., Shoe Carnival shares edged up less than 1 percent, to $24.81.