Shoe Carnival Shares Fall Following Q2 Results

Shares of

dropped around 4 percent in after-hours trading after the company reported results for the second quarter. The Evansville, Indiana-based company reported quarterly net earnings of $4.8 million, or $0.24 per share, compared to $2.6 million, or $0.13 per share, in the year-ago quarter. Its revenue climbed to $227.8 million from $222.1 million. Analysts were expecting earnings of $0.18 per share on revenue of $228.3 million. The average estimate among 6 Estimize users was for earnings of $0.19 per share and revenue of $229.19 million. Its comparable store sales rose 0.5 percent for the quarter. The gross profit margin expanded to 29.1 percent for the second quarter, from 28.0 percent in the year-ago quarter. Merchandise margin gained 1.1 percent in the quarter. Selling, general and administrative expenses rose $0.4 million to $58.4 million in the latest quarter. Cliff Sifford, President and CEO, said, "We are pleased with our second quarter financial performance. Our strong quarterly earnings were driven by a combination of higher merchandise margins and lower advertising expenses. Comparable store sales were in-line with our expectations as the solid start to the quarter was muted by an anticipated shift in tax-free holidays to the third quarter of this year from the second quarter of fiscal 2014. We believe our assortment of branded, family footwear, favorable inventory position, and our multi-channel initiatives positioned us well to capture the robust back-to-school sales with our August comparable store sales up high single digits." Shoe Carnival projects full-year earnings of $1.42 to $1.48 per share, on revenue of $977 million to $991 million. In fiscal 2015, Shoe Carnival projects to open 21 new stores and close 15 stores. Shoe Carnival shares fell 3.94 percent to $24.60 in the after-hours trading session.