Shoe Carnival saw its net income for the quarter ended January 30, 2016 rise by 40.0 percent year-on-year to $4.2 million. The footwear retailer said its multi-channel sales strategy and reward programs were among the factors that helped it pull off a strong quarter.
Sales increased by 2.7 percent to $233.7 million and comparable store sales gained 1.8 percent. The gross margin edged up by 0.6 percentage point to 29.2 percent, while the operating margin increased by 0.8 percentage point to 2.8 percent. The chief executive of Shoe Carnival, Cliff Sifford, noted that the company is particularly pleased with the strength of its athletic footwear and trend-right boot selection.
Revenues for the full year ended January 30, 2016 increased by $43.8 million over the prior year to $984 million, while comparable store sales advanced by 3.0 percent. The gross margin was up by 0.4 percentage point to 29.5 percent, with the company opening 20 new stores and closing 15.
Net earnings climbed by 13.0 percent to $28.8 million and the operating margin gained 0.3 percentage point to 4.7 percent.
The company said that its inventory position and assortment of fresh spring product in the key categories have it well-positioned for the spring selling season. It expects sales to reach between $1,000 million and $1,027 million in 2016, with an increase in comparable store sales in the range of 1.0 to 3.0 percent.