Jun 23, 2020
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Shoe Carnival sees stronger-than-expected sales following store reopenings

Jun 23, 2020

Evansville, Indiana-based value footwear and accessories retailer Shoe Carnival, Inc. announced on Monday that it has seen stronger-than-expected sales since reopening its stores after temporary closures implemented in reaction to the Covid-19 pandemic.

Shoe Carnival's e-commerce sales have experienced exceptionally strong growth - Instagram: @shoecarnival

The company has now reopened all but one of the 390 locations it operates across the U.S. and Puerto Rico and has seen a positive reaction from consumers. Second quarter-to-date comparable sales have increased 28.1% compared to the same period in the previous year, reflecting a 4.0% rise in brick-and-mortar revenues and an increase of almost 470% in comparable e-commerce sales.
“The first half of fiscal 2020 ushered in an unprecedented operating landscape for our business,” said Shoe Carnival vice chairman and CEO Cliff Sifford in a release. “As we have slowly re-emerged with heightened safety procedures, we have welcomed back our customers to stores, and as a result, fiscal second quarter-to-date sales have exceeded our expectations. While there are still many unknowns, we are encouraged by these more than positive sales.”

Nonetheless, the company also highlighted that it expects to see the effects of significant gross margin headwinds in its second-quarter financial results. These headwinds would reflect issues with the retailer’s mix, as well as an increase in shipping charges related to the drastic rise in e-commerce sales.
Due to ongoing uncertainty surrounding the impact of the Covid-19 pandemic, Shoe Carnival has not provided financial guidance for the second quarter or full fiscal year 2020. The company intends to report its full second-quarter results in August.
2019 was a “record” year for Shoe Carnival, which reported $1.030 billion in annual net sales and $38.1 million in income, or $2.45 per diluted share.

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