Shoe Carnival, Inc. (NASDAQ: SCVL), a leading footwear and accessories retailer, has reported its second quarter fiscal 2024 results, showcasing impressive growth across various financial metrics.
In the second quarter ended August 3, 2024, the company's net sales exceeded expectations, surging 12.9% year-over-year to $332.7 million. GAAP EPS came in at $0.82, with adjusted EPS at $0.83, both surpassing the company's expectations. GAAP operating income increased by 22.0% to $30.1 million, while adjusted operating income rose by 23.7% to $30.5 million compared to the prior year.
Mark Worden, President and CEO, highlighted the company's record-breaking net sales, gross profit margin expansion, and significant market share gains. He underlined the strong back-to-school results, with comparable sales growth achieved in August, driven by the children's and athletic categories.
During the second quarter, the company's gross profit margin expanded to 36.1% while SG&A expenses decreased to 27.1% of net sales, both reflecting positive trends. The operating income totaled $30.1 million, marking a 22.0% increase versus the prior year.
Net income for the second quarter 2024 was $22.6 million, or $0.82 per diluted share, compared to $19.4 million, or $0.71 per diluted share in the second quarter of 2023. Adjusted EPS, excluding expenses related to the acquisition of Rogan's, was $0.83.
The company's merchandise inventory for the second quarter 2024 totaled $425.5 million, an increase of approximately $16.1 million versus the same period in 2023. However, fiscal 2024 year-end inventory dollars are expected to be lower by approximately $20 million, or 5%, versus fiscal 2023 year-end, excluding the impacts of the Rogan's acquisition.
As of September 5, 2024, Shoe Carnival operated 430 stores, with strategic plans in place to surpass 500 stores by 2028, inclusive of organic growth and strategic M&A activity.
The company has $50 million available for future repurchases under its share repurchase program and has maintained a debt-free status for the 19th consecutive year, funding its operations and growth investments from operating cash flow.
Looking ahead, the company has increased its fiscal 2024 sales guidance range to a growth of 5% to 6%, reflecting the strong momentum seen during the back-to-school season. It also expects third quarter 2024 net sales to be approximately $320 million, with GAAP EPS of approximately $0.70.
The fiscal 2024 outlook has been revised upwards, with net sales expected to range between $1.23 billion to $1.25 billion, representing growth of 5% to 6% versus fiscal 2023. The company also adjusted its GAAP EPS range to $2.55 to $2.70 and its non-GAAP EPS to $2.60 to $2.75.
Following these announcements, the company's shares moved -1.4%, and are now trading at a price of $37.55. For more information, read the company's full 8-K submission here.
