Shoe Carnival, Inc. reported net sales of 332.2 million dollars for the second quarter of fiscal 2021, a 10.5 percent increase compared to the second quarter of fiscal 2020.
The company attributed the sales increase to continued broad-based demand for the product offerings, a more normalized beginning to the back-to-school season, improving macroeconomic factors in the U.S. and the easing of Covid-19 restrictions.
Gross profit margin for the quarter increased 13.4 percentage points to 40.9 percent compared to 27.5 percent in the prior year. Net income was 44.2 million dollars or 1.54 dollars per diluted share compared to 10.1 million dollars or 35 cents per diluted share in the second quarter of 2020.
“Our best in class merchandising strategy, innovative store operations and powerful data analytics derived from our CRM program continued to drive outstanding financial results and increases in new customer acquisition,” said Cliff Sifford, Shoe Carnival’s vice chairman and chief executive officer, adding, “As I hand the reins over to Mark Worden to enhance Shoe Carnival’s leadership position in the family footwear channel, I have never been more confident.”
Shoe Carnival’s H1 comparable stores sales up 48.8 percent
Net sales for the first six months were 660.7 million dollars compared to 448.3 million dollars in the first six months of fiscal 2020, while comparable store sales increased 48.8 percent.
The gross profit margin for the first half was 40.3 percent compared to 25.4 percent in the same period last year. Net income rose to 87.5 million dollars or 3.05 dollars per diluted share compared to a net loss of 6.1 million dollars or a loss of 22 cents per diluted share, for the first six months of fiscal 2020.
The company said, one new store opened in the second quarter and one store opened, while six closed during the six month period. The company expects to close three additional stores during the remainder of fiscal 2021 compared to a total of four store openings and 13 store closings in fiscal 2020.
The Company is currently in the process of modernizing its stores and plans to modernize approximately 100 stores by the spring of 2022, with the goal of modernizing two-thirds of its store fleet in the next three-to-five years.
Shoe Carnival raises FY21 outlook
“The momentum has continued through the first three weeks of August, with comparable store sales increasing 23 percent and product margins increasing nearly 11 percentage points when compared to August 2019. Given our strong performance in the first half of the year, we are raising our full year guidance, as well as offering our view of the fiscal third quarter,” added Mark Worden, president and Incoming chief executive officer.
Based on third quarter results to date and expected continued strength in gross profit margin for the remainder of the quarter, the company currently anticipates diluted net income per share in the range of 1.10 dollars to 1.15 dollars and net sales in the range of 307 million dollars to 315 million dollars for the third quarter of fiscal 2021.
For full year fiscal 2021, the company currently anticipates diluted net income per share in the range of 4.35 dollars to 4.50 dollars and net sales in the range of 1.21 billion dollars to 1.23 billion dollars.