Following a rocky first quarter family footwear retailer Shoe Carnival promised that sales would climb with the temperatures, but the company’s latest earnings report paints a decidedly less sunny picture.
The Indiana-based company came in below Wall Street expectations during its second quarter, posting net income of $4.1 million, or 22 cents per share, lower than the 27 cents analysts had anticipated. Profits fell roughly 15 percent from last year when the company reported profit of $4.8 million.
Sales rose 1.7% to $231.9 million in the second quarter, compared to $227.8 million during the same period last year, though this was also below expectations. Wall Street had predicted sales of $237.2 million.
Shoe Carnival, which said it hopes to open 20 new stores and close 10 stores by the end of this fiscal year, reported same-store sales that were largely flat, up just half a percent.
During the company’s earnings call, Shoe Carnival blamed delayed back to school shopping on a poorer-than-expected performance during the second quarter.
Shoe Carnival President and CEO Cliff Sifford said that non-athletic footwear categories, particularly sandals, performed well in the second quarter.
“We remain focused on the execution of our multi-channel strategic initiatives to fuel future growth in sales and profitability,” said Sifford. “Going forward, we have confidence in our opportunities and our ability to capitalize on them while maintaining the financial flexibility to continue our commitment of returning value to our shareholders through share repurchases and consistent dividend payments.”
The company lowered its guidance for the rest of the year, reporting that it now expects net sales in the range of $1.02 billion to $1.016 billion, down from the $1.007 billion to $1.027 billion the company said it expected last quarter. Same-store sales guidance was also lowered, now expected to increase in the range of 1.5-2 percent, rather than the 1-3 percent gain the company previously anticipated.