Shoe Carnival Reports First Quarter Fiscal 2021 Results
Shoe Carnival, Inc. (Nasdaq: SCVL) (the “Company”), a leading retailer of footwear and accessories for the family, today reported results for the first quarter ended May 1, 2021.
First Quarter Highlights
-
Record quarterly net income of
$43.2 million and diluted net income per share of$3.02 ; first quarter earnings exceed any previous full-year earnings -
Record quarterly net sales of
$328.5 million and record quarterly comparable store sales increase of 125.8 percent -
Record quarterly gross profit of
$130.2 million and record quarterly gross profit margin of 39.6 percent - E-commerce sales increase of 11.8 percent versus fiscal 2020 and 191.3 percent versus fiscal 2019
- Shoe Perks customer loyalty program membership grew over 10 percent compared to the prior year bringing total membership in the program to over 27 million
-
Cash and cash equivalents were
$174.6 million with no outstanding debt as of May 1, 2021
“Once again, the Shoe Carnival team delivered another record-breaking quarter, achieving the highest sales, margin, and EPS results in our history. Tax refunds, stimulus payments, and our merchants’ ability to deliver the items and brands our customers desired fueled positive traffic trends during the quarter. This resulted in a comparable store sales increase of 125.8 percent and all-time high store conversion rates. Our customer’s focus was on product and not promotion. This allowed us to eliminate low-margin promotions for the entire first quarter, which led to a 1,000-basis point increase in merchandise margin. Our industry-leading CRM program allowed us to get our brand message to our customers and their positive reaction gives us confidence for the remainder of the year. Our relentless focus will remain on continuing to deliver the right product, service and overall customer experience,” said Cliff Sifford, Shoe Carnival’s Vice Chairman and Chief Executive Officer.
“We are thrilled that customers are shopping in-store again, and we look forward to giving them an even more exciting shopping experience as we continue modernizing our store fleet and delivering on-trend product for the entire family at the value they expect. We believe we have earned the tremendous support our customers have in us. We will continue our mission of putting our customers in the center of all we do to maintain and grow the loyalty they have in the Shoe Carnival brand,” concluded Mr. Sifford.
First Quarter Financial Results
The Company reported net sales of
Gross profit margin for the first quarter of fiscal 2021 increased 18.3 percentage points to 39.6 percent compared to 21.3 percent in the prior year. Merchandise margin increased 10.0 percentage points and buying, distribution and occupancy expenses, which are generally fixed costs, decreased 8.3 percentage points as a percentage of net sales compared to the first quarter of fiscal 2020. The increase in merchandise margin was primarily due to strong customer response to the Company’s merchandise selection, which resulted in less promotional activity during the quarter. The decrease in buying, distribution and occupancy costs, as a percentage of sales, was primarily due to leveraging occupancy costs against a higher sales base.
Selling, general and administrative expenses (“SG&A”) for the first quarter of fiscal 2021 increased
Net income for the first quarter of fiscal 2021 was
Store Updates
No new stores were opened in the first quarter of fiscal 2021 and six stores were closed. The Company expects to open one store and close two additional stores during the remainder of fiscal 2021 compared to a total of four store openings and 13 store closings in fiscal 2020.
The Company is currently in the process of modernizing its stores and plans to modernize approximately 100 stores by May 2022, with the goal of modernizing two-thirds of its store fleet in the next three-to-five years.
Fiscal 2021 Outlook
Based on second-quarter results to date and expected continued strength in gross profit margin for the remainder of the quarter, the Company currently anticipates record diluted net income per share in the range of
Given the continued uncertainty in the business environment, including consumer spending behaviors, ongoing supply chain disruptions, and the timing of in-person learning in the fall, the Company is not providing guidance for the second half of fiscal 2021 at this time.
Share Repurchase Program
As of May 1, 2021, the Company had
Conference Call
Today, at 4:30 p.m. Eastern Time, the Company will host a conference call to discuss the first quarter results. Participants can listen to the live webcast of the call by visiting Shoe Carnival's Investors webpage at www.shoecarnival.com. While the question-and-answer session will be available to all listeners, questions from the audience will be limited to institutional analysts and investors. A replay of the webcast will be available on the Company’s website beginning approximately two hours after the conclusion of the conference call and will be archived for one year.
Annual Shareholder Meeting
As previously announced, the Company will hold its Annual Meeting of Shareholders at 9:00 a.m. Central Daylight Time on June 10, 2021 at its corporate headquarters located at 7500 East Columbia Street, Evansville, Indiana. In the event i
