US retailer Shoe Carnival's sales climb 16.4% in Q2 FY22

Given the volatility experienced during 2020 and 2021, the company believes the most relevant comparison for the second quarter 2022 is to the second quarter 2019, prior to the onset of the COVID-19 pandemic and related government stimulus and supply chain disruption.

Based on results through the second quarter, Shoe Station banner sales are now expected to exceed previously announced full year expectations of $100 million by more than 10 per cent. Gross profit margin increased 560 basis points in the second quarter, the company said in a press release.

“The Shoe Carnival team delivered exceptional profitability in a challenging economic environment,” said Mark Worden, president and chief executive officer. “The nearly $2.00 of EPS earned during the first half of 2022 is greater than any full year earnings in our 44 years of operation except for last year’s stimulus boosted results.”

“We are proud to deliver our sixth consecutive quarter of double-digit operating income margin and gross profit margin that expanded nearly 600 basis points versus pre-pandemic levels on both a quarterly and year-to-date basis. Contribution from the Shoe Station banner has exceeded initial expectations and we expect to realise additional synergies and to grow store count across both banners. We are optimistic about our long-term growth trajectory and delivering our profitability goals for 2022,” concluded Worden.

Compared to 2019, EPS growth has accelerated through the first half of 2022, increasing 107 per cent in the first quarter and 160 per cent in the second quarter. These results, combined with the solid start to the third quarter, provide the foundation for the company’s sales and earnings outlook for fiscal 2022.

For fiscal 2022, net sales are expected to be between $1.29 billion and $1.34 billion, up 24 per cent to 29 per cent compared to 2019. Gross profit margin is expected to be in a range of 36.6 per cent to 36.7 per cent, compared to 30.1 per cent in 2019. Operating income margin is likely to be in a range of 11.4 per cent to 11.6 per cent, compared to 5.2 per cent in 2019.

Fibre2Fashion News Desk (RR)