Companies

Shoe Carnival sales decline

Mar 23, 2023 United States

The US-based footwear retailer posted a fourth quarter and annual sales decline in 2022 over the prior year, but profits exceeded pre-pandemic levels

“Our growth strategies to increase scale, modernize our customer experience, leverage customer data, and carry the hottest branded merchandise are working. As a result, the total earnings per share generated over the last two years have exceeded the earnings per share the corporation achieved over the preceding 13 years combined. As we move forward, we expect this profit level to continue on our track to becoming a multi-billion-dollar retailer by 2028”, commented Mark Worden, President and Chief Executive Officer

Fourth Quarter Results

In the last quarter of fiscal 2022, the retailer's net sales totalled 290.8 million US dollars, reflecting a decline of 7.2%, as compared “to a stimulus-elevated fourth quarter 2021”. The company further noticed that in the past January, the first comparable month without government stimulus, net sales increased by low single digits versus January 2022.

Shoe Carnival's fourth quarter gross margin increased by 100 basis points to 38.3%, on a comparable to the same period of the previous year, mainly “reflecting higher merchandise margins in fourth quarter 2022 and 1.1 million US dollars of Shoe Station acquisition-related charges in fourth quarter 2021”.

In the three months to the 28^th of January, the company's net income totalled 21.6 million US dollars, or 0.79 US dollars per diluted share, as compared to a 2021 fourth quarter net income of 20.6 million US dollars, or 0.72 US dollars, respectively.

Full Year Results

Over fiscal 2022, Shoe Carnival's net sales amounted to 1.26 billion US dollars, decreasing by 5.1% on a comparable basis to the prior fiscal year. Its full year gross margin also declined by 250 basis points to 37.1%, as compared to fiscal 2021.

In the last fiscal year, the company's net income was 110.1 million US dollars, or 3.96 US dollars per diluted share, on a comparable basis to a net income of 154.8 million US dollars, or 5.42 US dollars per diluted share, recorded over the prior year.

Fiscal 2023 Outlook

For fiscal 2023, the company is expecting to reach net sales between 1.26 US dollars to 1.32 US dollars (flat to a 6% growth over 2022), and earnings per diluted share in the range of 3.96 US dollars to 4.20 US dollars (flat to a 4.5% increase over 2022).

Image Credits: mapquest.com

United States Companies Footwear Quarter Results Results Retail Shoe Carnival Shoes Year Results