Shoe Carnival rounds off record year with expectation-topping fourth quarter
Evansville, Indiana-based footwear retailer Shoe Carnival, Inc. reported record annual sales and earnings on Tuesday, as its fourth-quarter financial results came in above analysts’ expectations.
The company’s net sales for the fourth quarter ended February 2, 2019 totaled $234.7 million, a 3.5% decrease from $243.2 million in the prior-year period, as a comparable sales increase of 4.7% was offset by the loss of Q4 2017’s extra week, which accounted for some $15.2 million in revenue.
Nonetheless, Shoe Carnival’s quarterly net income increased to $1.4 million, or $0.09 per diluted share, up from a loss of $3.9 million, or $0.24 per diluted share, in the equivalent period in the previous year, when earnings were negatively impacted by the US Tax Act.
According to FactSet figures cited by MarketWatch, analysts had expected the retailer to achieve earnings of $0.06 per share on sales of $233 million.
Shoe Carnival’s full-year sales for fiscal 2019 increased $10.5 million or 1.1% to hit a record $1.030 billion, up from $1.019 billion in the previous year. Comparable store sales rose 4.3%.
The retailer’s annual net income also reached record levels, totaling $38.1 million, or $2.45 per diluted share, compared to $18.9 million, or $1.15 per diluted share, in fiscal 2017.
“We believe our customer-centric strategic initiatives, trend-right selection of compelling brands and the latest fashion along with our exciting in-store environment continue to make Shoe Carnival the store of choice for moderately priced family footwear,” said Shoe Carnival President and CEO Cliff Sifford in a release. “Going forward, we believe we remain well positioned to deliver long-term sustainable growth and value for our shareholders.”
In fiscal 2019, the company expects net sales to be in the range of $1.035 billion to $1.043 billion, and predicts that comparable store sales will increase in the low single digits. Earnings per diluted share for the fiscal year are expected to be between $2.60 and $2.70.
Having opened three new locations and closed 14 stores in 2018, the retailer currently operates 397 stores in 35 states and Puerto Rico.
Following the announcement of Shoe Carnival’s fourth-quarter and full-year 2018 results, shares in the company rose more than 10% in the extended session on Tuesday.
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