Shoe Carnival bets on back-to-school season
Footwear retailer Shoe Carnival, Inc. (Nasdaq: SCVL) executives said on a Thursday afternoon conference call the company looks forward to a successful back-to-school season. After reporting bland first-quarter results before opening of trading Thursday, CEO Mark Lemond said the company expects positive comparative store sales in the third quarter.
“We’re trending a lackluster spring, a flighty second quarter and much better sales with the back-to-school sales in the third quarter,” Lemond said on the call.
With high gas prices affecting consumers, Lemond said he does not expect second quarter results to change greatly from the first.
The Evansville, Ind.-based company reported revenue of $165.7 million during the first quarter ended May 5, down from $168.5 million a year earlier. Shoe Carnival reported a profit of $7.3 million first-quarter profit, or $0.53 a share, compared with $7.4 million, or $0.54 a share, in the same period in 2006.
Over the last 52 weeks, Shoe Carnival shares have ranged between $19.25 and $35.26. In late afternoon trading today, shares in the company were down 5.65% at $27.55.
Also on the call, Lemond said:
• For the first quarter, women style sales accounted for 29%, men’s 14%, and kids 16%. Athletic shoes accounted for the remainder.
• The second quarter has been shifted forward one week to end Aug. 4
• The company is entering a “large market” next year, but declined to disclose the location.
• The $40 million distribution center built in Evansville, Ind., last year will cost shareholders $0.01 per share during the second and third quarters
• The Sketchers’ shoes similar to the unique and successful style of Crocs, Inc. (Nasdaq:CROX) have been “performing very well”
• The company is in discussions to change the basketball shoes strategy for the fourth quarter
• Shoe Carnival is adding vendors that sell skate-style shoes
