Shoe Carnival, Inc. said double-digit traffic declines through the first three weeks of December will lead to fourth-quarter earnings missing targets. The shoe chain now expects earnings per diluted share in the fourth quarter of fiscal 2013 are expected to be in the range of 3 to 6 cents a share, down from 13 cents a year ago.
On Dec. 2 when reporting third-quarter results, Shoe Carnival forecast earnings of 18 cents to 22 cents a share.
The company now expects fourth quarter net sales to be in the range of $203 to $205 million with a comparable store sales decrease of up to one percent. It had expected sales to be in the range of $215 to $219 million with a comparable store sales increase in the range of 4.0 to 6.0 percent.
Speaking on the expected results for the quarter, Cliff Sifford, president and CEO, said, "We experienced a very strong start to the fall selling season during October and November, producing comparable store sales gains of 5.4 percent and 7.8 percent, respectively. These gains were driven primarily by a mid-twenty percent increase in our boot classification for the family. As we entered December, we experienced double-digit traffic declines through the first three weeks. Traffic and sales improved Christmas week and New Year's week resulting in a comparable store sales decline of 6.1 percent for the month of December. We expect comparable store sales for the month of January ending February 1, 2014 to be flat to down 4 percent compared to the four weeks ended February 2, 2013."
Sifford continued, "While we are disappointed in our expected sales and earnings for the fourth quarter, we have managed our inventories and expect to end the quarter with per-store inventories down low single digits."
Shoe Carnival operates 381 stores in 32 states and Puerto Rico.
