After a difficult first quarter, Shoe Carnival is experiencing a strong rebound in sales, so much so that it has issued a business update.
For this second fiscal quarter, which began on May 6, so far comparable store sales have surged by 28.1 percent from the same period last year, with brick-and-mortar comparable sales up by 4.0 percent and e-commerce comparable sales up by a staggering 470 percent.
As of June 22, the American footwear retailer has re-opened all but one of its 390 stores in the U.S. and Puerto Rico.
Despite this sales surge, the group anticipates gross margin headwinds for the fiscal second quarter as a result of its product mix and increased shipping charges associated with higher e-commerce sales.
Shoe Carnival will provide more details on the quarter’s financial performance in August.
The group had to close all stores on March 19 because of the pandemic before re-opening the first ones, representing over 50 percent of its total, from late April to May 5. Over the first quarter, the company swung to a net loss of $16.2 million from a profit of $13.9 million the year earlier, as the gross profit margin decreased to 21.3 percent from 29.6 percent, and sales declined by 41.9 percent from the year earlier to $147.5 million.