Shoe Carnival Announces Preliminary Fourth Quarter Results

Rhea-AI Summary

Shoe Carnival reported preliminary fourth quarter results for fiscal 2020, indicating net sales of approximately $253.9 million, up from $239.9 million in 2019. Comparable store sales rose by 6.4%, building on a 3.2% increase from the prior year. The expected net income per diluted share is between $0.50 and $0.52, compared to $0.24 in 2019. The company ended the quarter with $106 million in cash and no borrowings. Despite these positive results, no guidance for fiscal 2021 was provided due to ongoing uncertainties related to COVID-19.

Positive

• Net sales increased by approximately $14 million year-over-year.
• Comparable store sales grew by 6.4%, improving on prior year's growth.
• Net income per diluted share expected to be $0.50-$0.52, significantly higher than $0.24 in 2019.
• Strong cash position with $106 million in cash and no debt.

Negative

• No fiscal 2021 guidance provided due to COVID-19 uncertainties.

Shoe Carnival, Inc. (Nasdaq: SCVL) (the “Company”), a leading retailer of moderately priced footwear and accessories, today reported preliminary results for the fourth quarter ended January 30, 2021.

Preliminary Results for the Fourth Quarter of Fiscal Year 2020

For the fourth quarter ended January 30, 2021, the Company expects to report:

• Net sales increased to approximately $253.9 million, compared to $239.9 million in the fourth quarter of fiscal 2019.
• Comparable store sales increased approximately 6.4 percent, on top of a 3.2 percent comparable store sale increase in the fourth quarter of fiscal 2019.
• Net income per diluted share is expected to be in the range of $0.50 and $0.52, compared to $0.24 in the fourth quarter of fiscal 2019.
• Cash and cash equivalents on hand at the end of the quarter were $106 million with no borrowings under the Company’s credit facility.

“Our record fourth quarter results capped off an unprecedented year, further demonstrating the resiliency of our team and Shoe Carnival’s unique and differentiated concept. We realized a comparable store sales increase in excess of six percent, drove an impressive bottom line through incredible margin growth, and continued our explosive e-commerce growth,” commented Cliff Sifford, Shoe Carnival’s Vice Chairman and Chief Executive Officer.

Mr. Sifford continued, “We take great pride in the strong foundation of trust we have built with our loyal customers who continue to rely on us for the latest trends from the best brands both online and in-store. However, this would not be possible without our committed Shoe Carnival employees and incredible vendor partnerships. We are looking forward to further success as we move into fiscal year 2021.”

The foregoing expected results are preliminary and remain subject to the completion of normal quarter end and year end accounting procedures and closing adjustments. Due to the ongoing uncertainty created by COVID-19, the Company is not providing fiscal year 2021 guidance at this time. The Company intends to release its fourth quarter and full year fiscal 2020 earnings results on Wednesday, March 24, 2021, after the market close.

About Shoe Carnival

Shoe Carnival, Inc. is one of the nation’s largest family footwear retailers, offering customers a broad assortment of moderately priced dress, casual and athletic footwear for men, women and children with emphasis on national name brands. As of February 5, 2021, the Company operates 383 stores in 35 states and Puerto Rico, and offers online shopping at www.shoecarnival.com. Headquartered in Evansville, IN, Shoe Carnival trades on The Nasdaq Stock Market, LLC under the symbol SCVL. Shoe Carnival's press releases and annual report are available on the Company's website at www.shoecarnival.com.

Cautionary Statement Regarding Forward-Looking Information

This press release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, that involve a number of risks and uncertainties. A number of factors could cause our actual results, performance, achievements or industry results to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. These factors include, but are not limited to: the duration and spread of the COVID-19 outbreak, mitigating efforts deployed by government agencies and the public at large, and the overall impact from such outbreak on the operations of our stores, economic conditions, financial market volatility, consumer spending and our supply chain and distribution processes; general economic conditions in the areas of the continental United States in which our stores are located and the impact of the ongoing economic crisis in Puerto Rico on sales at, and cash flows of, our stores located in Puerto Rico; the effects and duration of economic downturns and unemployment rates; changes in the overall retail environment and more specifically in the apparel and footwear retail sectors; our ability to generate increased sales at our stores; our ability to successfully navigate the increasing use of online retailers for fashion purchases and the impact on traffic and transactions in our physical stores; the success of the open-air shopping centers where our stores are located and its impact on our ability to attract customers to our stores; our ability to attract customers to our e-commerce platforms and to successfully grow our multi-channel sales; the potential impact of national and international security concerns on the retail environment; changes in our relationships with key suppliers; our ability to control costs and meet our labor needs in a rising wage environment; changes in the political and economic environments in, the status of trade relations with, and the impact of changes in trade policies and tariffs impacting, China and other countries which are the major manufacturers of footwear; the impact of competition and pricing; our ability to successfully manage and execute our marketing initiatives and maintain positive brand perception and recognition; our ability to successfully manage our current real estate portfolio and leasing obligations; changes in weather, including patterns impacted by climate change; changes in consumer buying trends and our ability to identify and respond to emerging fashion trends; the impact of disruptions in our distribution or information technology operations; the effectiveness of our inventory management; the impact of natural disasters, other public health crises, political crises, civil unrest, and other catastrophic events on our stores and our suppliers, as well as on consumer confidence and purchasing in general; risks associated with the seasonality of the retail industry; the impact of unauthorized disclosure or misuse of personal and confidential information about our customers, vendors and employees, including as a result of a cyber-security breach; our ability to manage our third-party vendor relationships; our ability to successfully execute our business strategy, including the availability of desirable store locations at acceptable lease terms, our ability to open new stores in a timely and profitable manner, including our entry into major new markets, and the availability of sufficient funds to implement our business plans; higher than anticipated costs associated with the closing of underperforming stores; the inability of manufacturers to deliver products in a timely manner; the impact of regulatory changes in the United States and the countries where our manufacturers are located; the resolution of litigation or regulatory proceedings in which we are or may become involved; continued volatility and disruption in the capital and credit markets; future stock repurchases under our stock repurchase program and future dividend payments; and other factors described in the Company’s SEC filings, including the Company’s latest Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.

In addition, these forward-looking statements necessarily depend upon assumptions, estimates and dates that may be incorrect or imprecise and involve known and unknown risks, uncertainties and other factors. Accordingly, any forward-looking statements included in this press release do not purport to be predictions of future events or circumstances and may not be realized. Forward-looking statements can be identified by, among other things, the use of forward-looking terms such as “believes,” “expects,” “may,” “will,” “should,” “seeks,” “pro forma,” “anticipates,” “intends” or the negative of any of these terms, or comparable terminology, or by discussions of strategy or intentions. Given these uncertainties, we caution investors not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. We disclaim any obligation to update any of these factors or to publicly announce any revisions to the forward-looking statements contained in this press release to reflect future events or developments.

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FAQ

What were Shoe Carnival's fourth quarter 2020 net sales?

Shoe Carnival reported approximately $253.9 million in net sales for the fourth quarter of fiscal 2020.

How did comparable store sales perform for Shoe Carnival in Q4 2020?

Comparable store sales increased by approximately 6.4% in the fourth quarter of fiscal 2020.

What is the expected net income per share for Shoe Carnival in Q4 2020?

The expected net income per diluted share for Q4 2020 is between $0.50 and $0.52.

What is Shoe Carnival's cash position at the end of Q4 2020?

Shoe Carnival had $106 million in cash and cash equivalents at the end of Q4 2020 with no borrowings.

Why did Shoe Carnival not provide fiscal year 2021 guidance?

Shoe Carnival did not provide guidance for fiscal year 2021 due to ongoing uncertainties related to the COVID-19 pandemic.