US footwear retailer Shoe Carnival's net income at $110.1 mn in FY22

In the fourth quarter (Q4) of FY22, the net sales of $290.8 million decreased by $22.6 million, or 7.2 per cent, compared to Q4 FY21. The gross profit margin increased to 38.3 per cent compared to 37.3 per cent in the previous year. Operating income for fourth quarter of FY22 was $28.7 million and was 9.9 per cent of net sales. Net income for Q4 FY22 was $21.6 million, an increase from $20.6 million in the previous year. EPS on a GAAP basis was $0.79, compared to $0.72 in FY21, the company said in a press release.

The company also released its outlook for FY23, with expected EPS to be in the range of $3.96 to $4.20, which is flat to a 6 per cent increase. The net sales are expected to be in the range of $1.26 billion to $1.32 billion, which is flat to a 4.5 per cent increase. The gross profit margin is expected to remain flat at around 37 per cent, and selling, general, and administrative expense as a percentage of net sales is expected to remain flat at around 25.6 per cent. The operating income is expected to be in the range of $143 million to $150 million, which is a 2 per cent decrease to a 3 per cent increase. The operating income margin is expected to be around 11.4 per cent, which is a decrease of around 20 basis points. Net income is expected to be in the range of $109 million to $114 million, a decrease of 1 per cent to an increase of 4 per cent.

Mark Worden, president and chief executive officer, said: "The Shoe Carnival team successfully delivered operating income margins and overall profitability more than double those generated just three years ago, consistent with our strategic plans and 2022 guidance. These results demonstrate the sustainability of our profit transformation and set the new benchmark for us going forward.

"Our growth strategies to increase scale, modernise our customer experience, leverage customer data, and carry the hottest branded merchandise are working. As a result, the total earnings per share generated over the last two years have exceeded the earnings per share the corporation achieved over the preceding 13 years combined. As we move forward, we expect this profit level to continue on our track to becoming a multi-billion-dollar retailer by 2028."

Fibre2Fashion News Desk (DP)