Shoe Carnival announces sales & earnings results for Q1
25 May '07
4 min read
The effective income tax rate for the first quarter of fiscal 2007 was 32.0 percent compared to 38.3 percent in the first quarter of fiscal 2006. The reduction in the effective income tax rate was primarily due to a reduction in state income taxes from state incentives related to the investment in the new distribution center. The reduction in income tax expense related to the tax incentives equates to an increase of approximately $0.05 in earnings per diluted share for the quarter.
Speaking on the results for the quarter, Mark Lemond, chief executive officer and president said, "Industry-wide, early spring footwear sales at retail were not as strong as most retailers expected. While sales and earnings fell short of our original expectations for the first quarter, our merchandise team effectively managed our inventories and we ended the quarter with inventory levels that were slightly down on a per-store basis compared with the first quarter of last year."
"This year we have initiated what we anticipate to be a multi-year period of accelerated store growth. We expect to open up to 25 stores this year, including the seven stores we opened during the first quarter. In fiscal year 2008, we expect to accelerate new store growth to between 12 and 15 percent and hold the growth rate at that level for the foreseeable future."
"New store growth in fiscal 2007 will primarily come from filling-in existing larger, under-penetrated markets and opening stores in single-store markets where we typically see higher initial sales productivity. Supporting this growth strategy is our new 410,000 square foot distribution center, which is now handling the distribution needs of all of our stores, and our new 60,000 square foot corporate headquarters."
Second Quarter 2007 EPS Outlook: Earnings per diluted share in the second quarter of fiscal 2007 are expected to range from $0.20 to $0.23 compared to $0.21 for the second quarter of 2006. This assumes comparable store sales ranging from a decrease of 1 percent to an increase of 1 percent.
marketing@alchempro.com
