Shoe Carnival earnings drop on income tax expenses; plans 23–28 stores

Evansville, Ind. – Shoe Carnival Inc. reported a 3% year-over-year drop in net income to $9.2 million, from $9.5 million in the first quarter of fiscal 2014. The retailer plans to open 23-28 new stores in fiscal 2014, including 16 in the second quarter and seven-to-12 in the fourth quarter.

Shoe Carnival’s net sales grew 1.5% to $235.8 million, from $232.3 million.

Same-store sales declined 1.7%, which Shoe Carnival attributed to the effects of bad weather. Higher income tax expenses reduced total net income. The company expects second quarter net sales to be in the range of $223 million to $228 million with comparable store sales in the range of flat to a decline of 3.0%.

“Our continued focus on store growth led to a first quarter net sales increase of 1.5%. However, severe weather and higher utility and health care costs adversely impacted our consumer contributing to our comparable store sales decline,” said Cliff Sifford, president and CEO. “Despite the difficult quarter, we were pleased with the initial response to our first-ever national television advertising campaign. While achieving brand recognition in new markets takes time, we did see an immediate increase in online traffic and sales in large markets such as New York City, and Los Angeles, where we do not currently have a store presence. Longer term, as we enter new markets we expect to benefit from enhanced brand awareness.”

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