Evansville, Ind. – Increases in cost of sales and selling, general and administrative expenses (SG&A) drove a year-over-year reduction in net income during the second quarter of fiscal 2014 at Shoe Carnival Inc. The company reported net income of $2.58 million, down 59% from $5.84 million the same period a year earlier.
Net sales fared better, rising 3% to $222.1 million from $216.4 million. Same-store sales dropped 2.1%.
Looking ahead, Shoe Carnival plans to open nine new stores and close two stores in the fourth quarter. In addition, in the third quarter, the company plans to convert from third-party fulfillment of e-commerce orders to fulfilling those orders from its stores and distribution center, as well as launch its first-ever mobile app.
Shoe Carnival anticipates third quarter net sales will be in the range of $247 million to $252 million. This expectation includes a range for comparable store sales of down 1% to a 1% gain.