US' Shoe Carnival records 32.7 mn loyalty customers in Q1 FY23

However, the company's Q1 FY23 net sales ranked in the top three for any first quarter in Shoe Carnival's history but represented an 11.4-per cent decrease compared to Q1 FY22. The sales dip to $281.2 million was largely attributed to reduced traffic caused by persistent inflation and a near 9-per cent drop in federal tax refunds, the company said in a press release.

The gross profit margin for Q1 FY23 was reported at 35 per cent, a slight drop of 50 basis points from the previous year. Despite the decrease, the margin continued to be over 500 basis points higher compared to pre-pandemic 2019 levels. The merchandise margin decreased 30 basis points compared to Q1 FY22 due to increased promotional activities.

Selling, general, and administrative expenses were controlled to be nearly flat in Q1 FY23 compared to Q1 FY22.

Shoe Carnival's net income for Q1 FY23 was $16.5 million, or $0.60 per diluted share, compared to Q1 FY22 of $26.9 million, or $0.95 per diluted share. The earnings per share (EPS) in Q1 FY23 were 30.4 per cent higher than the pre-pandemic Q1 FY19 figures.

“Despite the slower than expected start to 2023, our customer base grew at the fastest pace of the last three years, climbing to a record high of 32.7 million members at quarter end. With the continued strategic growth of our CRM and digital platforms, we now reach a critical mass of American households, engaging with approximately 1 out of every 8 adults ongoing, growth of nearly 65 per cent from just five years ago. I am most pleased our instore shopping experience is continuing to drive high conversion, and we once again captured market share growth within this challenging economic backdrop,” said Mark Worden, president and chief executive officer.

Fibre2Fashion News Desk (DP)