Shoe Carnival's Q3 comparable sales decline by 4.1 percent

Shoe Carnival’s net sales in the third quarter declined to 306.9 million dollars. The company said, without the impact of the retail calendar shift, net sales increased by 2.2 percent versus prior year.

Comparable store net sales for the thirteen-week period ended November 2, 2024 declined 4.1 percent.

“Our Back-to-School results were strong, with comparable store sales growth across our banners and robust margins. Our flexible digital-first marketing campaign and great brand assortment drove demand during this peak shopping period and profitability in line with expectations for the third quarter,” said Mark Worden, Shoe Carnival’s president and chief executive officer.

Review of Shoe Carnival’s Q3 and year-to-date performance

On a year-to-date basis net sales totaled 939.9 million dollars, increasing 4.9 percent.

The company added that net sales in the quarter were led by a strong back-to-school performance, comparable store net sales growth in August, and net sales from the February 2024 acquisition of Rogan’s.

Comparable store net sales in September and October were significantly impacted by two hurricanes and customer shopping trends, along with persistently warm weather that delayed the winter boot shopping season.

Gross profit margin in the third quarter was 36 percent, exceeding 35 percent, while operating income dropped to 24.5 million dollars.

Shoe Carnival further said that net income for the quarter was in line with the company’s expectation at 19.2 million dollars or 70 cents per diluted share. In the year-to-date period, net income and EPS increased 2.2 percent and 1.9 percent, respectively, versus the prior year.

As of November 21, 2024, the company operated 431 stores, with 361 Shoe Carnival stores, 42 Shoe Station stores and the 28 Rogan’s locations. One new Shoe Station store opened in the third quarter in Tennessee, expanding this banner into a new market.

Shoe Carnival updates sales and profit forecast

The company has lowered its net sales range to 1.20 billion dollars to 1.23 billion dollars, representing growth of 2 percent to 4.5 percent in fiscal 2024.

Gross profit margin is expected to be approximately even with fiscal 2023, GAAP EPS is expected to be in a range of 2.55 dollars to 2.70 dollars and adjusted EPS to be in a range of 2.60 dollars to 2.75 dollars.

The company continues to expect the Rogan’s acquisition to deliver net sales of over 80 million dollars in fiscal 2024, with 22.3 million dollars of net sales in the third quarter and 63.9 million dollars year-to-date in 2024.