Shoe Carnival Reports Second Quarter Fiscal 2023 Results

About this update from Shoe Carnival, Inc.

EVANSVILLE, Ind.--(BUSINESS WIRE)-- Shoe Carnival, Inc. (Nasdaq: SCVL) (the “Company”), a leading retailer of footwear and accessories for the family, today reported results for the second quarter ended July 29, 2023. Highlights Net sales and diluted earnings per share improved from first quarter 2023 as a result of investments in branding, advertising and in-store experience. Softness in urban markets led to comparable sales down 6.5 percent versus prior year. Shoe Station net sales increased low-single digits in second quarter 2023; growth accelerated in August to mid-teens during back-to-school, both versus prior year. Gross profit margin exceeded 35 percent for the 10th consecutive quarter. Annual guidance is updated, reflective of second quarter results and ongoing consumer trends. “Our second quarter results demonstrated the momentum of our strategy within the context of a challenging economic backdrop. We delivered improvement on net sales, earnings per share and market share growth versus first quarter 2023, while also increasing investment in our branding, advertising and in-store experience. In August, we opened our 400th store and surpassed over half of our stores being modernized,” said Mark Worden, President and Chief Executive Officer. “We saw improving conditions related to the impact of inflation in the second quarter, but some of our urban customers remain challenged in the current economic environment. As such, we are taking a measured approach to the balance of the year. Given the strength of our balance sheet and our strategy, we are in a strong position to grow as the economy improves and continue to actively evaluate both organic and acquisition-related opportunities,” said Mr. Worden. Back-to-School Update Market conditions continued to modestly improve in early third quarter 2023 versus second quarter 2023. August sales and profits were among the highest of any month in the Company’s 45-year history, with product margins approaching record highs. The August back-to-school shopping period accounts for half of the Company’s third quarter gross profit, and with the results achieved to date, the Company remains on track to deliver its full year gross profit margin guidance of 36 to 37 percent. Fiscal 2023 Earnings Outlook The Company now expects to deliver on the following annual guidance for 2023, which includes 53 weeks compared to 5...

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