Shoe Carnival Announces Fourth Quarter and Full Year 2012 Unaudited Sales and Earnings
Shoe Carnival, Inc. (NASDAQ: SCVL), a leading retailer of value-priced
footwear and accessories, today reported unaudited sales results and
updated earnings expectations for the fourth quarter and fiscal year
ended February 2, 2013. The fourth quarter of fiscal 2012 included 14
weeks compared to 13 weeks in the fourth quarter of fiscal 2011 and the
full fiscal year of 2012 included 53 weeks compared with 52 weeks in the
full fiscal year of 2011.
Net sales for the 14-week fourth quarter ended February 2, 2013
increased 13.1 percent to $205.7 million compared to net sales of $181.9
million in the 13-week fourth quarter ended January 28, 2012. Sales of
approximately $10.7 million were recorded in the extra week of fiscal
2012. Comparable store sales for the 13-week period ended January 26,
2013 increased 0.5 percent compared to the 13-week period ended January
28, 2012.
Net sales for fiscal 2012 increased 12.1 percent to $855.0 million,
compared to net sales of $762.5 million for fiscal 2011. Comparable
store sales for the fiscal 52-week period ended January 26, 2013
increased 4.5 percent compared to the 52-week period ended January 28,
2012.
Although the year-end audit is not complete, the Company expects to
report net earnings for the fourth quarter of fiscal 2012 of $3.2
million, or $0.16 in adjusted earnings per diluted share, as compared to
net earnings of $3.3 million, or $0.16 per diluted share for the fourth
quarter of fiscal 2011. Earnings per diluted share for the fourth
quarter of fiscal 2012, computed in accordance with GAAP, are
anticipated to be $0.13.
Net earnings for fiscal 2012 are expected to be $29.3 million, or $1.43
per diluted share, compared to net earnings of $26.4 million, or $1.31
per diluted share reported in fiscal 2011.
While the Company’s payment of a $20.4 million special cash dividend in
December 2012 had no effect on fourth quarter or annual net income or
annual diluted earnings per share, the expected results for the fourth
quarter of fiscal 2012 include a $0.03 reduction in earnings per diluted
share due to the application of the two-class method of computing
earnings per share in connection with this dividend (see GAAP to
Non-GAAP Reconciliation Table below).
Cliff Sifford, President and CEO, stated, “We are pleased to report that
our unaudited sales and earnings for fiscal 2012 are the highest in the
Company’s history. Our 4.5 percent comparable store sales increase for
the year was driven by athletic footwear along with men’s and children’s
dress and casual footwear. In addition, we accelerated our store growth
by opening 31 stores including market entries into Dallas, Texas with 7
stores and Puerto Rico with 4 stores.”
“While we achieved record results for the fiscal year, our fourth
quarter sales and earnings fell short of our previous guidance. At the
low-end of our guidance issued in mid-January, we anticipated a
mid-single digit decline in comparable store sales during the last two
weeks of the quarter. Actual results for those two weeks included a
decline in comparable store sales of 27 percent for a loss of
approximately $7 million in sales against our expectations. This sales
decline accounted for the entire shortfall in our earnings guidance for
the fourth quarter.”
Mr. Sifford continued, “The decline was primarily in athletic sales,
which we believe was a result of colder weather and, more importantly,
the delay in income tax refunds. For the past several years, we have
brought in our spring athletic receipts earlier to take advantage of the
strong demand for athletic footwear in late January and throughout
February. Our weakness in sales continued into the early part of
February, but rebounded sharply, particularly in athletic footwear, when
the income tax refunds started reaching our customers. For the month of
February 2013, our comparable store sales increased low single digits.”
Earnings Release and Conference Call
On Monday, April 1, 2013, the Company will release fourth quarter and
full year 2012 results. At 4:30 p.m. Eastern time that day, the Company
will host a conference call to discuss the fourth quarter results.
Participants can listen to the live webcast of the call by visiting Shoe
Carnival's Investors webpage at www.shoecarnival.com.
While the question-and-answer session will be available to all
listeners, questions from the audience will be limited to institutional
analysts and investors. A replay of the webcast will be available on the
Company’s website beginning approximately two hours after the conclusion
of the conference call and will be archived for one year.
About Shoe Carnival
Shoe Carnival, Inc. is one of the nation’s largest family footwear
retailers, offering a broad assortment of moderately priced dress,
casual and athletic footwear for men, women and children with emphasis
on national and regional name brands. As of March 6, 2013, the Company
operates 358 stores in 32 states and Puerto Rico, and offers online
shopping at www.shoecarnival.com.
Headquartered in Evansville, IN, Shoe Carnival trades on The NASDAQ
Stock Market LLC under the symbol SCVL. Shoe Carnival's press releases
and annual report are available on the Company's website at www.shoecarnival.com.
Non-GAAP Measure
The non-GAAP measure shown in this release, adjusted earnings per
diluted share for the fourth quarter of fiscal 2012, excludes the $0.03
negative effect to earnings per diluted share resulting from the
treatment of undistributed losses under the two-class method related to
the $20.4 million special cash dividend paid in December 2012.
Reconciliation of this non-GAAP measure to the most directly comparable
GAAP measure is included below. This measure is not in accordance with,
or an alternative for, GAAP and may be different from non-GAAP measures
used by other companies. Management believes that adjusted earnings per
diluted share for the fourth quarter of fiscal 2012 is a useful measure
of the Company’s performance in the comparative quarterly periods
presented, as it allows management and investors to analyze the
financial and business trends related to the Company’s results of
operations separate from the impact of the special cash dividend.
Cautionary Statement Regarding Forward-Looking Information
This press release contains forward-looking statements, within the
meaning of the Private Securities Litigation Reform Act of 1995, that
involve a number of risks and uncertainties. A number of factors could
cause our actual results, performance, achievements or industry results
to be materially different from any future results, performance or
achievements expressed or implied by these forward-looking statements.
These factors include, but are not limited to: general economic
conditions in the areas of the continental United States and Puerto Rico
in which our stores are located; the effects and duration of economic
downturns and unemployment rates; changes in the overall retail
environment and more specifically in the apparel and footwear retail
sectors; our ability to generate increased sales at our stores; the
potential impact of national and international security concerns on the
retail environment; changes in our relationships with key suppliers; the
impact of competition and pricing; changes in weather patterns, consumer
buying trends and our ability to identify and respond to emerging
fashion trends; the impact of disruptions in our distribution or
information technology operations; the effectiveness of our inventory
management; the impact of hurricanes or other natural disasters on our
stores, as well as on consumer confidence and purchasing in general;
risks associated with the seasonality of the retail industry; our
ability to successfully execute our growth strategy, including the
availability of desirable store locations at acceptable lease terms, our
ability to open new stores in a timely and profitable manner, including
our entry into major new markets, and the availability of sufficient
funds to implement our growth plans; higher than anticipated costs
associated with the closing of underperforming stores; our ability to
successfully grow our e-commerce business; the inability of
manufacturers to deliver products in a timely manner; changes in the
political and economic environments in China, Brazil, Europe and East
Asia, where the primary manufacturers of footwear are located; the
impact of regulatory changes in the United States and the countries
where our manufacturers are located; and the continued favorable trade
relations between the United States and China and the other countries
which are the major manufacturers of footwear.
In addition, these forward-looking statements necessarily depend upon
assumptions, estimates and dates that may be incorrect or imprecise and
involve known and unknown risks, uncertainties and other factors. The
Company has not completed preparation of its audited financial
statements for the year ended February 2, 2013. These preliminary
results may be subject to adjustments and could change materially.
Accordingly, any forward-looking statements included in this press
release do not purport to be predictions of future events or
circumstances and may not be realized. Forward-looking statements can be
identified by, among other things, the use of forward-looking terms such
as “believes,” “expects,” “may,” “will,” “should,” “seeks,” “pro forma,”
“anticipates,” “intends” or the negative of any of these terms, or
comparable terminology, or by discussions of strategy or intentions.
Given these uncertainties, we caution investors not to place undue
reliance on these forward-looking statements, which speak only as of the
date hereof. We disclaim any obligation to update any of these factors
or to publicly announce any revisions to the forward-looking statements
contained in this press release to reflect future events or developments.
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GAAP to Non-GAAP Reconciliation Table
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Fourteen
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Thirteen
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Fifty-three
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Fifty-two
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Weeks Ended February 2, 2013
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Weeks Ended January 28, 2012
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Change
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Weeks Ended February 2, 2013
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Weeks Ended January 28, 2012
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Change
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Earnings per diluted share of common stock (GAAP)
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$
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0.13
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$
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0.16
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(19.3
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%
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$
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1.43
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$
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1.31
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9.4
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%
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Impact of dividends exceeding earnings
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0.03
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0.00
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N/A
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N/A
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Adjusted earnings per diluted share of common stock
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$
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0.16
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$
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0.16
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0.0
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%
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N/A
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N/A
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N/A
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Under the two-class method of computing earnings per share, the
undistributed losses resulting from dividends exceeding net income are
not allocated to participating securities. Non-vested stock awards
issued by the Company that include non-forfeitable rights to dividends
are considered participating securities. As earnings for full-year
fiscal 2012 exceeded dividend distributions, there was no impact to
earnings per diluted share for fiscal 2012 resulting from the special
cash dividend.