Shoe Carnival Reports Strong Q4 Earnings

By Bobby Samwell • Thursday, March 21 10:16 • Permanent Link

Shoe Carnival, Inc. has reported its fourth quarter and fiscal 2023 results, along with its annual guidance for fiscal year 2024. The market has reacted to these announcements by moving the company's shares 2.0% to a price of $33.62. Here are the key highlights from the press release:

Net sales totaled $280.2 million in the fourth quarter of 2023 and $1.176 billion for fiscal 2023, meeting the high end of the company's expectation.
GAAP EPS for the fourth quarter of 2023 was $0.57, with adjusted EPS at $0.59. For fiscal 2023, GAAP EPS was $2.68, and adjusted EPS was $2.70, both achieving at the mid-range of the company's expectation.
The company is initiating its fiscal 2024 outlook with net sales expected to grow approximately 5.0 percent at the mid-point of guidance.
Rogan's synergy expectation has been increased to approximately $2.5 million annually, with full synergies expected to be realized in fiscal 2025.
A dividend increase of 12.5 percent, representing an increased annualized dividend rate to $0.54, has been approved in March 2024.
Net sales in the fourth quarter of 2023 were $280.2 million, down 3.6 percent compared to the fourth quarter of 2022.
Comparable store sales declined 9.4 percent in the fourth quarter of 2023, primarily due to soft trends prior to the December holiday period and weather disruptions in January.
Fourth quarter 2023 marked the 12th consecutive quarter the company’s gross profit margin exceeded 35 percent, with gross profit margin decreasing to 35.6 percent in the fourth quarter of 2023.
Fourth quarter 2023 net income was $15.5 million, or $0.57 per diluted share, compared to fourth quarter 2022 net income of $21.6 million, or $0.79 per diluted share.
The company's inventory optimization improvement plan delivered ahead of expectation in fiscal 2023, with inventory $43.9 million, or 11.3 percent lower than the prior year.
The acquisition of Rogan’s, a 53-year-old work and family footwear company, was announced, and the company expects it to be immediately accretive to fiscal 2024 earnings.
The company operates 429 stores following the acquisition of Rogan’s and expects to operate 430 to 432 stores by the end of fiscal 2024, representing net growth of 30 to 32 stores.
The company's board of directors approved a dividend increase of 12.5 percent from 12 cents per share to 13.5 cents per share in March 2024.
The company ended fiscal 2023 with approximately $111 million of cash, cash equivalents, and marketable securities, with no debt for the 19th consecutive year.
Since 2019, EPS has increased 84 percent, gross profit margin expanded 570 basis points, and net sales grew 13 percent.
The company is initiating its financial outlook for fiscal 2024, with net sales expected to be in a range of $1.21 billion to $1.25 billion, representing growth of 4.0 percent to 6.0 percent versus fiscal 2023.
GAAP EPS for fiscal 2024 is expected to be in a range of $2.50 to $2.70, while adjusted EPS is expected to be in a range of $2.55 to $2.75.

For more information, read the company's full 8-K submission here.

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