Shoe Carnival Reports Q1 Profit Dip
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Evansville-based Shoe Carnival Inc. (Nasdaq: SCVL) is reporting fiscal first quarter net income of $26.9 million, down from $43.2 million during the same period last year. Chief Executive Officer Mark Worden says the company exceeded expectations despite the quarter’s economic headwinds and global uncertainties.
“Our strategies to double our operating profit compared to the levels before the pandemic have worked,” said Worden. “Our first quarter results demonstrate the structural profit transformation and increased scale our plans have achieved compared to pre-pandemic results. With gross profit margins in the mid-thirties, double-digit operating profit margin and store productivity above $300 per square foot, we are incredibly optimistic about our future growth and long-term profit potential.”
The company says the best indicator of its strength is the more than 25% sales growth and 107% EPS growth during 2022 compared to the first quarter in 2019 before the COVID-19 pandemic. According to Worden, the company is raising its annual EPS guidance and reiterating its sales growth guidance for the year based on its strong start.
Shoe Carnival opened two new stores during the first quarter and says it plans to open 10 new stores this year with no store closures. The company is also in the process of modernizing its stores and plans to have more than 50% of its stores completed by summer 2023 and the entire project complete by the end of fiscal 2024.
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