EVANSVILLE, Ind. - Shoe Carnival , Inc. (NASDAQ:SCVL), a prominent family footwear retailer, has surpassed analyst expectations for the first quarter of 2024, reporting a robust increase in earnings and revenue.
The company announced an adjusted EPS of $0.64, which is $0.07 higher than the analyst estimate of $0.57. Revenue also saw a significant jump, reaching $300.36 million against the projected $285.95 million.
The first quarter results demonstrated a 6.8% increase in net sales compared to the same period last year, signaling a strong start to the fiscal year. The company's GAAP EPS stood at $0.63, while the adjusted EPS reached $0.64, both figures aligning with the high end of Shoe Carnival (NYSE:CCL)'s expectations. This performance was primarily driven by a notable rise in gross profit margin, which expanded to 35.6% due to higher merchandise margins and efficient leverage in buying, distribution, and occupancy costs.
President and CEO Mark Worden expressed satisfaction with the quarter's achievements, highlighting the company's success in exceeding sales expectations and expanding gross profit margins. Worden attributed the positive outcome to significant market share gains and robust sales momentum, particularly in the sandal category, which continued to experience double-digit growth post-Easter.
Despite a 3.4% decline in comparable store sales compared to the previous year, trends improved significantly as the quarter progressed, culminating in growth towards the end of the period. Inventory levels also reflected strategic management, with a $22.1 million increase from the first quarter of 2023, factoring in the $40 million inventory from the Rogan's acquisition, balanced by ongoing inventory optimization efforts.
Looking ahead, Shoe Carnival remains confident in its fiscal 2024 outlook, reiterating its expectation for net sales growth between 4% and 6% compared to fiscal 2023. The company forecasts GAAP EPS to range from $2.50 to $2.70 and adjusted EPS from $2.55 to $2.75 for the full year, which hovers around the analyst consensus of $2.63.
The company's strategic growth roadmap aims to exceed 500 stores by 2028, including organic growth and strategic mergers and acquisitions. With the modernization of over 60% of Shoe Carnival stores completed, the company plans to continue this initiative throughout fiscal 2024, with capital expenditures expected to fall between $25 million and $35 million.
Shoe Carnival's financial position remains solid, ending the first quarter with approximately $69.5 million in cash, cash equivalents, and marketable securities, and roughly $100 million in borrowing capacity. This marks the 19th consecutive year the company has concluded with no debt, a testament to its prudent capital management and operational efficiency.
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