Shoe Carnival Q4 Net Earnings Down

Footwear retailer Shoe Carnival has reported net earnings of $1.1 million for the 13-week fourth quarter of fiscal 2007 ended February 2, 2008, compared to net earnings of $5.1 million for the 14-week fourth quarter ended February 3, 2007.

Diluted earnings per share were $0.09 per share, compared to $0.37 per share in the fourth quarter of fiscal 2006. The extra week included in the fourth quarter of fiscal 2006 increased diluted earnings per share in that quarter by approximately $0.05.

Sales for the 13-week period ended February 2, 2008 were $164.3 million, compared to sales of $177.2 million for the 14-week period ended February 3, 2007. Sales of approximately $11.5 million were recorded in the extra week of the fourth quarter of fiscal 2006. Comparable store sales for the 13-week period ended February 2, 2008 decreased 5.7% when compared with the 14-week period ended February 3, 2007. Operating income for the fourth quarter was $1.6 million, compared to $7.9 million in the fourth quarter of 2006.

Net sales were $658.7 million for fiscal 2007, compared to $681.7 million for fiscal 2006. Comparable store sales for the 52-week period ended February 2, 2008 decreased 5.2% when compared with the 52-week period ended February 3, 2007. Net earnings for fiscal 2007 were $12.8 million, or $0.97 per diluted share, compared to net earnings of $23.8 million, or $1.73 per diluted share, last year.

Mark Lemond, CEO and president, said: “Fiscal 2007 proved to be a difficult period for us and footwear retailers in general. The challenging economic environment continued to directly affect our targeted moderate income consumer, and consequently, had a negative impact on both traffic and sales.”