Shoe Carnival exceeded expectations for the fourth quarter, while reporting a decrease in revenue for fiscal year 2016.
The company saw a marginal sales increase during the fourth quarter of $0.5 million to $234.2 million, a 0.2% increase compared to net sales of $233.7 million during the same period last year.
However, comparable store sales dropped 1.2 percent, while net loss was $0.9 million, or a loss of $0.05 per diluted share.
“Our comparable stores sales performance was in-line with the updated expectations we provided in January and our gross profit margin came in better than we anticipated,” said Cliff Sifford, Shoe Carnival president and CEO. “Our team took decisive actions to promote our seasonal boot footwear to ensure we ended 2016 in a clean inventory position.
Net sales for FY 2016 increased $17.1 million to $1.001 billion compared to $984 million last year. Comparable store sales increased marginally to 0.5%.
However, net earnings for the year were $23.5 million, or $1.28 per diluted share, a decrease compared to net earnings of $28.8 million, or $1.45 per diluted share last year.
Sifford relayed his belief that the strong athletic footwear cycle the company saw in 2016 will continue into this year.
Looking forward, Shoe Carnival expects net sales to be around $1.028 billion- $1.040 billion, with comparable store sales staying flat or to low single digits. The company foresees earnings per diluted share to be between $1.45-$1.54.
“Looking ahead, we believe we are well positioned to execute on our strategic initiatives,” said Sifford. “We have the financial flexibility with the strength of our balance sheet and cash flow to enhance value for shareholders by investing in our business and through our existing dividend and share repurchase programs.”