Shoe Carnival saw it share price slide yesterday after the US footwear retailer lowered its fourth-quarter earnings guidance.
The company said it expects earnings per diluted share in the fourth quarter to be in the range of US$0.03 to $0.06. Previously, the company guided for earnings of $0.18 to $0.22 per share.
Net sales are expected to be in the range of $203m to $205m with a comparable store sales decrease of up to 1%. The firm's previous guidance was sales of $215m to $219m.
"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," said CEO Cliff Sifford.
Shoe Carnival's share price dropped 1.9% to $27.33 at close of trading yesterday.
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Shoe Carnival Provides Updated Financial Guidance Business Wire Shoe Carnival, Inc. 12 hours ago
EVANSVILLE, Ind.--(BUSINESS WIRE)--
Shoe Carnival, Inc. (SCVL), a leading retailer of value-priced footwear and accessories, today announced updated sales and earnings guidance for the 13-week fourth quarter ending February 1, 2014 compared to the prior year 14-week fourth quarter ended February 2, 2013. The Company does not plan to provide preliminary financial information in the future other than in unique circumstances, or in the event of a material event that requires disclosure.
The Company 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. Earnings per diluted share in the fourth quarter of fiscal 2013 are expected to be in the range of $0.03 to $0.06. In the fourth quarter of fiscal 2012, net sales were $205.7 million, comparable store sales increased 0.5 percent and the Company earned $0.13 per diluted share.
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."
Mr. 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."
