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Shoe Carnival with record quarterly sales and net income

Sep 2, 2021 United States
Shoe Carnival with record quarterly sales and net income
The US-based retailer of footwear and accessories reported results for the second quarter and six months periods ended on the 31st of July 2021. Shoe Carnival talks about record quarterly sales and record quarterly net income


“Our best in class merchandising strategy, innovative store operations and powerful data analytics derived from our CRM program continued to drive outstanding financial results and increases in new customer acquisition. Our business fundamentals are the strongest they have ever been, which gives us the confidence to lean forward and aggressively plan for continued growth through the remainder of the year. I am incredibly proud of our amazing personnel and their unwavering commitment, which is on display seven days a week in all our stores”, commented Cliff Sifford, Shoe Carnival’s Vice Chairman and Chief Executive Officer.

Second Qarter Review

The company annonced record quarterly net income of 44.2 million US dollars, record diluted net income per share of 1.54 US dollars (adjusted for the two-for-one stock split effected in July 2021), record quarterly net sales of 332.2 million US dollars and quarterly comparable store sales increase of 11.4%. Shoe Carnival also announced record quarterly gross profit of 135.8 million US dollars and record quarterly gross profit margin of 40.9%.

The Shoe Perks customer loyalty program membership increased over 10% compared to the prior year with total membership approaching 28 million.

Mark Worden, President and Incoming Chief Executive Officer added: “The Shoe Carnival team delivered spectacular results, posting record sales and EPS growth, which included our highest operating profit on record, during the fiscal second quarter. This momentum has continued through the first three weeks of August, with comparable store sales increasing 23% and product margins increasing nearly 11 percentage points when compared to August 2019. Given our strong performance in the first half of the year, we are raising our full year guidance, as well as offering our view of the fiscal third quarter.”

Six Month Financial Results

Net sales for the first six months of fiscal 2021 totaled 660.7 million US dollars compared to 448.3 million US dollars in the first six months of fiscal 2020. Comparable store sales increased by 48.8% for the first six months of fiscal 2021. Net income for the first six months of fiscal 2021 was 87.5 million US dollars, or 3.05 US dollars per diluted share, compared to a net loss of 6.1 million US dollars, or a loss of 0.22 US dollars per diluted share, for the first six months of fiscal 2020.

Store Update

One new store opened in the second quarter of fiscal 2021 and no stores were closed. For the first six months of fiscal 2021, the company has opened one store and closed six stores. Shoe Carnival expects to close three additional stores during the remainder of fiscal 2021 compared to a total of four store openings and 13 store closings in fiscal 2020. The company is currently in the process of modernizing its stores and plans to modernize approximately 100 stores by the spring of 2022, with the goal of modernizing two-thirds of its store fleet in the next three-to-five years.

Fiscal 2021 Outlook

Based on third quarter results to date and expected continued strength in gross profit margin for the remainder of the quarter, Shoe Carnival currently anticipates diluted net income per share in the range of 1.10 US dollars to 1.15 US dollars and net sales in the range of 307 million US dollars to 315 million for the third quarter of fiscal 2021. For full year fiscal 2021, the Company currently anticipates diluted net income per share in the range of 4.35 US dollars to 4.50 US dollars and net sales in the range of 1.21 billion US dollars to 1.23 billion US dollars.

Image credits: LinkedIn Sales Solutions on Unsplash


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