Shoe Carnival Profit Down, But Tops View; Shares Up

(RTTNews) - Footwear retailer Shoe Carnival Inc (SCVL), Monday reported a marginal drop in profit for the third quarter, reflecting growth in revenues while expenses increased, with both earnings and revenues trumping Wall Street estimates. Shares of the company gained 7 percent in the after-hours trade on the Nasdaq.

Evansville, Indiana-based Shoe Carnival's third-quarter profit was $10.8 million or $0.54 per share, compared with last year's profit of $10.9 million or $0.54 per share. On average, five analysts polled by Thomson Reuters estimated earnings of $0.48 per share for the quarter. Analysts' estimates typically exclude special items.

Sales for the third quarter rose to $254.7 million from $235.8 million last year, topping estimates of $248.83 million.

Comparable store sales increased 2.3 percent in the third quarter. Gross margin remained flat with last year's 30.1 percent. Selling, general and administrative expenses, as a percentage of sales, increased to 23.1 percent from 22.5 percent last year.

"These results reflect strong sales in our fashion boot category and progress in key initiatives we announced last year, mainly, national advertising, better brands in our women's department and a reinvigorated e-commerce presence," Chief Executive Cliff Sifford observed.

Looking forward to the fourth quarter, the company expects earnings of $0.06 to $0.10 per share and sales of $218 million to $222 million. Analysts currently estimate earnings of $0.09 per share on revenues of $217.5 million for the quarter.

"Our customers' reception to our trend right product assortment combined with a strong fourth quarter marketing presence gives us confidence to expect continued increases in comparable store sales and earnings for the fourth quarter," said Sifford.

SCVL closed Monday's trading at $19.62, down $0.64 or 3.16%, on the Nasdaq. The stock, however, gained $1.38 or 7.03% in the after-hours trade.