Shoe Carnival Beats Sales, Earnings Expectations in Q1
Shoe Carnival reaffirmed its 2024 full-year outlook on Thursday morning after it reported earnings and sales for Q1 that exceeded analysts’ expectations.
The Evansville, Ind.-based footwear retailer reported net sales in the quarter of $300.4 million, up 6.8 percent compared to the same time the prior year. Net income in the quarter was $17.3 million, or 63 cents per diluted share, compared to year-ago net income of $16.5 million, or 60 cents per diluted share. Both revenues and earnings beat the expectations of analysts surveyed by Yahoo Finance.
Shares of Shoe Carnival surged almost 4 percent in pre-market trading on Thursday.
“We are encouraged by the strong results delivered this quarter, with net sales growth above our expectation, gross profit margin expansion versus prior year, and earnings at the high end of our expectation,” said Shoe Carnival president and chief executive officer Mark Worden. “We gained significant market share, with accelerating sales momentum across our business as the quarter progressed, including double-digit growth in sandals that continued in the quarter after the Easter holiday period.”
Shoe Carnival said that sales from its $45 million February acquisition of Rogan’s Shoes, a 53-year-old work and family footwear company, were in line with its expectations as well. The company added that its inventory increased by about $22.1 million in the quarter as a result of the additional Rogan’s inventory.
As of May 4, Shoe Carnival’s fleet totals 430 stores, which includes 371 Shoe Carnival stores, 31 Shoe Station stores and 28 Rogan’s locations. Shoe Carnival said it plans to grow its fleet to more than 500 stores by 2028 via “organic growth and strategic M&A activity.”
For fiscal year 2024, Shoe Carnival reiterated its full-year outlook and said it expects net sales to be in a range of $1.21 billion to $1.25 billion, representing growth of 4 percent to 6 percent versus fiscal 2023. Adjusted earnings per share is expected to be in a range of $2.55 to $2.75 for the year.
“Our long-term strategies to grow sales and profit are working and position us well to further increase shareholder value and achieve our vision to be the nation’s leading family footwear retailer,” Worden said.