Press release
Shoe Carnival Reports Third Quarter Fiscal 2023 Results
EVANSVILLE, Ind.--(BUSINESS WIRE)-- Shoe Carnival, Inc. (Nasdaq: SCVL) (the “Company”), a leading retailer of footwear and accessories for the family, today
About this update from Shoe Carnival, Inc.
[{"type":"text","content":" EVANSVILLE, Ind.--(BUSINESS WIRE)--\nShoe Carnival, Inc. (Nasdaq: SCVL) (the “Company”), a leading retailer of footwear and accessories for the family, today reported results for the third quarter ended October 28, 2023.\n\n\nHighlights\n\n\n\nTotal quarterly net sales were down 6.4 percent; Unseasonably hot weather in September and October resulted in soft seasonal and non-athletic fall sales at Shoe Carnival stores.\n\n\n\nShoe Station net sales increased low-double digits in third quarter 2023 versus prior year and its results were accretive to Company operating income margin.\n\n\n\nChildren’s category sales grew low-single digits during Back-to-School, resulting in continued market share gains and the second highest category sales in the Company’s 45-year history.\n\n\n\nGross profit margin of 36.8 percent exceeded 35 percent for the 11th consecutive quarter.\n\n\n\nDividend increased 20 percent during the quarter and now represents a 166 percent increase compared to three years ago.\n\n\n\nAnnual guidance has been lowered, reflective of soft seasonal sales and limited visibility on customer holiday shopping.\n\n\n\n“Our team delivered a successful Back-to-School season, with solid growth in the children’s business, double-digit Shoe Station banner growth and continued market share gains in the family footwear channel. After Labor Day, Shoe Carnival banner results softened and were below our expectations, as persistently hot and dry weather led to soft seasonal sales and a sluggish start to the boot season,” said Mark Worden, President and Chief Executive Officer.\n\n\n“Despite near-term sales headwinds, our robust gross profit margins, debt-free balance sheet and strong cash flow generation position the Company well to pursue additional growth initiatives and M&A opportunities in 2024,” concluded Mr. Worden.\n\n\nThird Quarter Operating Results\n\n\nNet sales were $319.9 million, down 6.4 percent in the quarter compared to third quarter 2022 and comparable store sales were down 7.4 percent, primarily due to softening trends after Labor Day. August net sales, driven by a successful Back-to School season, were the second highest children’s category sales in the Company’s 45-year history. Trends softened versus the prior year in Shoe Carnival stores after Labor Day as sales of seasonal and fall merchandise were slow due prim...