Shoe Carnival Q4 sales drop but outlook remains positive

Footwear group Shoe Carnival has revealed its fourth quarter operating results, a period in which it experienced a 3.6 percent drop in net sales to 280.2 million dollars, yet a performance that was at the higher end of its expectations.

Comparable store sales for the company also fell in line with forecasts, declining 9.4 percent due to “soft trends prior to the December holiday period and weather disruptions in January”.

The gross profit margin came to 35.6 percent, a drop that was due to lower merchandise margins and buying, while net income totaled 15.5 million dollars, or 57 cents per diluted share. On an adjusted basis, EPS was 59 cents for the quarter, and for the year it came to 2.70 dollars.

Following the fourth quarter, Shoe Carnival had announced its intention to acquire Rogan’s, for which the financials have not been included, but will be “immediately accretive to [the] results in 2024”, as noted by president and CEO, Mark Worden.

In a release, Worden continued: “We are well positioned to advance our strategy to be the nation’s leading family footwear retailer by accelerating growth, as well as pursuing additional growth initiatives and M&A opportunities in the future.”

For the 2024 outlook, the company is expecting fiscal year sales to be in the range of 1.21 and 1.25 billion dollars, representing a growth of 4 to 6 percent. It is further anticipating its adjusted EPS, excluding costs related to the Rogan’s acquisition, to be between 2.55 and 2.75 dollars.