US' Shoe Carnival Q3 FY24 sales dip 4.06% YoY to $306.9 mn

Comparable store net sales for Q3 FY24, declined 4.1 per cent year-on-year (YoY) compared to Q3 FY23. The gross profit decreased to $110.3 million from $117.7 million YoY. Selling, general, and administrative expenses (SG&A) decreased to $85.8 million from $89.8 million YoY. As a per cent of net sales SG&A expenses were 28.0 per cent compared to 28.1 per cent in Q3 of previous FY, reflecting 10 basis points of leverage, on the lower, shifted sales base, said Shoe Carnival in a press release.

Gross profit margin was 36.0 per cent, marking the 15th consecutive quarter the company’s gross profit margin exceeded 35 per cent. Gross profit margin was lower in the quarter by 80 basis points compared to prior year primarily due to buying, distribution and occupancy costs (BD&O) from operating more stores and the deleveraging effect of lower net sales in the quarter, as impacted by the retail calendar shift.

The operating income of the company totalled $24.5 million, compared to $27.9 million in the Q3 FY23, as impacted by the lower net sales from the calendar shift, partially offset by growth from the Rogan’s acquisition and related synergies and lower SG&A.

Third quarter FY24 net income was in line with the company’s expectation at $19.2 million, or $0.70 per diluted share (EPS), compared to third quarter FY23 net income of $21.9 million, or $0.80 per diluted share, stated the press release.

GAAP results for the third quarter of FY24 included $0.3 million in expenses related to the Rogan’s acquisition, of which $0.2 million were included in cost of sales and $0.1 million were included in SG&A. On an adjusted basis, excluding these expenses, third quarter adjusted EPS was $0.71 and in line with the company’s expectation.

For the full fiscal 2024, the company expects net sales in the range of $1.20-$1.23 billion, representing growth of 2 per cent to 4.5 per cent versus full fiscal 2023. SG&A as a per cent of net sales expected to be 30 basis points higher than FY23. The income tax rate is expected to be approximately 25.6 per cent to 26 per cent in FY24. GAAP EPS to be in a range of $2.55 to $2.70. Non-GAAP EPS (Adjusted EPS) is expected to be in a range of $2.60 to $2.75.

Fibre2Fashion News Desk (SG)