“We are pleased with our strong financial results for the second quarter which exceeded our expectations", commented Cliff Sifford, Shoe Carnival’s President and Chief Executive Officer, adding: "Our mid-single digit comparable store sales increase was primarily driven by a double-digit increase in women’s non-athletic footwear with most of our other major footwear categories up mid-single digits. This positive trend has accelerated into the back-to-school season with comparable store sales up by 7.7% through the first three weeks of August. This sales increase was on top of a 7.0% increase in the full month of August last year. We believe we remain well positioned for future growth and based on these strong operational and financial results, as well as our outlook for the remainder of the year, we are raising our annual earnings guidance.”

Second quarter highlights

For the second quarter Shoe Carnival's net sales reached 268.4 million US dollars, increasing by 14.2% (235.1 million US dollars in similar period in 2017). Comparable store sales for the thirteen-week period ended on the 4^th of August increased by 6.7%.

Gross profit margin for the second quarter of fiscal 2018 increased to 31.2% compared to 29.0% in the second quarter of fiscal 2017.

Net income for the second quarter of fiscal 2018 totaled 11.8 million US dollars, or 0.76 US dollars per diluted share. For the second quarter of fiscal 2017, the company reported net income of 3.9 million US dollars, or 0.24 US dollars per diluted share.

Six-month financial results

Net sales for the six months period ended on the 4^th of August increased by 37.4 million US dollars to reach 525.8 million US dollars. In the first semester of the year, comparable store sales increased by 4.0%.

Net earnings for the first six months of fiscal 2018 reached 24.7 million US dollars, or 1.59 US dollars per diluted share, compared to net earnings of 12.1 million US dollars, or 0.73 US dollars per diluted share, in the first six months of fiscal 2017. The gross profit margin for the first six months of fiscal 2018 was 30.6% compared to 28.7% in the same period last year.

Store openings and closings

Shoe Carnival closed six stores during the first six months of fiscal 2018 compared to 12 store openings and nine store closings in the first six months of fiscal 2017. The company expects to open approximately three stores and close approximately 15 to 17 stores during fiscal 2018 compared to opening 19 stores and closing 26 stores during fiscal 2017.

Fiscal 2018 outlook

The company is raising its fiscal 2018 outlook with net sales being in the range of 1.016 billion US dollars to 1.020 billion US dollars and comparable store sales up low single digits; Earnings per diluted share are expected to be in the range of 2.07 US dollars to 2.15 US dollars. Fiscal 2017 earnings per diluted share were 1.15 US dollars and adjusted earnings per diluted share were 1.49 US dollars.