Shoe Carnival Profit Falls, Sales Miss Estimates - Update

(RTTNews) - Footwear retailer Shoe Carnival Inc. (SCVL) Monday reported a lower third-quarter profit, mainly as sales were impacted by the calendar shift from the prior year. While quarterly earnings topped Wall Street estimates, sales missed expectations.

Moving forward, the company provided strong sales outlook for the fourth quarter while earnings for the period are indicated to meet expectations.

"The arrival of October's seasonably cool weather and an end to the federal government shutdown was a welcomed relief in the third quarter," said CEO Cliff Sifford.

"October's mid-single digit comparable-store sales gain, together with August's sales performance, more than offset our negative September sales trend."

Evansville, Indiana-based Shoe Carnival posted quarterly net income of $11 million or $0.54 per share, compared with $12 million or $0.60 per share last year.

On average, six analysts polled by Thomson Reuters estimated earnings of $0.53 per share for the quarter. Analysts' estimates typically exclude special items.

Sales for the quarter fell to 3.5 percent to $235.8 million from $244.4 million a year ago. Analysts estimated sales of $239.49 million.

On a same store basis, sales for the quarter were up 0.7 percent.

As the prior fiscal year had 53 weeks, the first three quarters of the current year shifted one week later. This shift moved an important week of back-to-school sales from the prior-year third quarter into the second quarter this year, the company said.

Results were also impacted by gross margin that shrank to 30.1 percent from 31.3 percent in the prior year.

Looking ahead to the fourth quarter, Shoe Carnival expects earnings of $0.18 to $0.22 per share on sales of $215 million to $219 million. Analysts expect earnings of $0.20 per share on sales of $212.43 million.

The company expects same store sales growth of 4 percent to 6 percent for the quarter.

As of December 2, 2013, the company operated 381 stores.

The company's stock closed Monday at $27.47, down $1.46 or 5.05%, on a volume of 60 thousand shares on the Nasdaq.