Shoe Carnival Updates Full Fiscal Year 2016 Financial Guidance
Shoe Carnival, Inc. (NASDAQ: SCVL), a leading retailer of moderately priced footwear and accessories, today announced updated
sales and earnings guidance for its fiscal 2016 ending January 28, 2017.
The Company expects fiscal 2016 net sales to be in the range of $1.000 billion to $1.003 billion and expects comparable store
sales to increase slightly for the full fiscal year. Earnings per diluted share in fiscal 2016 are expected to be in the range of
$1.36 to $1.38. In fiscal 2015, net sales were $984.0 million, comparable store sales increased 3.0 percent and the Company earned
$1.45 per diluted share. This fiscal 2016 financial guidance does not include any potential fourth quarter non-cash asset
impairment charges, which are typically evaluated at quarter-end.
Shoe Carnival President and CEO Cliff Sifford commented, “We expect net sales to be at the low end of our previous fiscal 2016
guidance, as an improvement in December sales was not enough to offset the softness we experienced in November. Combined comparable
store sales for November and December decreased 1.1 percent. We promoted heavily in December, resulting in a projected gross margin
decline of approximately 210 basis points for the fourth quarter. We have aggressively managed our inventories and expect our
per-store inventories to be down mid-single digits at the end of the fiscal year.”
The Company will report its full fourth quarter and fiscal 2016 results on March 16, 2017.
The Company does not plan to provide preliminary financial results in the future other than in unique circumstances, or in the
event of a material event that requires disclosure. As previously announced, members of the Shoe Carnival management team will
present at the 2017 ICR Conference on Wednesday, January 11, 2017 at 11:00 a.m. Eastern Time in Orlando, FL. The audio portion of
the presentation will be webcast live, and a replay will be available on the Investors section of Shoe Carnival’s web site at
www.shoecarnival.com.
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 January
9, 2017, the Company operates 418 stores in 35 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.
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 in which our stores are located and the impact of the ongoing economic crisis in Puerto Rico
on sales at, and cash flows of, our stores located in Puerto Rico; 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; our ability to successfully
manage and execute our marketing initiatives and maintain positive brand perception and recognition; 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; the impact of unauthorized disclosure or misuse of personal and confidential information about our
customers, vendors and employees; our ability to manage our third-party vendor relationships; 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 or impairment charges associated with the closing of underperforming
stores; our ability to successfully grow our e-commerce sales; 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; the continued favorable trade relations between the United States and China and the other countries which are the major
manufacturers of footwear; the resolution of litigation or regulatory proceedings in which we are or may become involved; our
ability to meet our labor needs while controlling costs; and future stock repurchases under our stock repurchase program and future
dividend payments, and other factors described in the Company’s SEC filings, including the Company’s latest Annual Report on Form
10-K.
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. 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.
Shoe Carnival, Inc.
Cliff Sifford
President and Chief Executive Officer
or
W. Kerry Jackson
Senior Executive Vice President,
Chief Operating and Financial Officer and Treasurer
(812) 867-6471
www.shoecarnival.com
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