Family footwear retailer Shoe Carnival had a successful third quarter of fiscal year 2017, beating Wall Street’s expectations.
Net sales increased 4.7% to $287.5 million, compared to net sales of $274.5 million during the third quarter last year. Comparable store sales grew 4.4%.
“We are very pleased with our third quarter financial results, which reflect the strength of our selection of family footwear for the back-to-school season and our team’s ability to increasingly connect with customers across Shoe Carnival’s multi-channel presence,” said President and CEO Cliff Sifford. “During the quarter, our traffic was down low single digits, particularly due to the three hurricanes affecting Texas, Florida and Puerto Rico. Despite the inclement weather in these regions, we experienced solid increases in both units per transaction and conversion which helped drive a 4.4 percent increase in comparable store sales for the quarter.”
Gross profit fell 0.1% to 29.8% compared to 29.9% during the third quarter during fiscal year 2016.
Net income for the quarter was $10.7 million, or $0.66 per diluted share, coming in above Wall Street’s expectations of an earnings per share (EPS) of $0.62. That compared to a net income of $9.7 million, or $0.54 during the same time last year.
The company plans to open 19 stores and close 26 during FY2017, with 16 store closures occurring in the fourth quarter alone
“These increases, combined with our ongoing commitment and ability to effectively manage expenses, resulted in a 22 percent year-over-year increase in quarterly earnings per diluted share,” said Sifford. “Based on our third quarter performance and our outlook for the remainder of the year, we are pleased to raise our fiscal year outlook.”
Shoe Carnival increased its outlook for FY2017, now anticipating net sales to be around $1.02 billion to $1.025 billion, with comparable store sales staying the same or growing in the low single digits. Shoe Carnival now expects EPS to be in the range of $1.42 to $1.49, compared to last year’s $1.28, with adjusted EPS $1.40.