U.S. footwear retail chain posts record Q2 net sales

United States
Published:  07 September, 2020

Shoe Carnival, a U.S. based retailer of moderately priced footwear and accessories, posted US$300.8 million in net sales for the second quarter and six months ended August 1, 2020, representing an all-time quarterly record.

Shoe Carnival’s second quarter sales exceeded the previous record set in the third quarter of fiscal 2017 by 4.6%. Comparable store sales increased 12.6% and e-commerce sales, which represented more than 20% of total sales in the second quarter of fiscal 2020, were up 332%. The company said that bricks-and-mortar sales were adversely impacted by Covid-19 related closures early in the second quarter, as well as the collateral delays in back-to-school shopping late in the quarter. Gross profit margin decreased 27.5% compared with 30.6% in the second quarter of fiscal 2019. Net income was US$10.1 million in the period.

Net sales for the first six months of fiscal 2020 totalled US$448.3 million, down from US$522.0 million a year earlier. Comparable store sales decreased 14% in the period. Net loss was US$6.1 million. Gross profit margin for the first six months was 25.4% compared with 30.1% in the same period of 2019.

Cliff Sifford, Vice Chairman and CEO, Shoe Carnival, said the company’s strategic investments in technology supported sustained triple-digit growth in e-commerce sales. “The Covid-19 pandemic has undoubtedly created significant uncertainty across the U.S., which has shifted our typical back-to-school season. Nearly all schools within the markets we operate in have, at a minimum, delayed their start dates”, said Sifford. “Given the shift in the back-to-school season, we anticipate that the majority of the volume we typically see in August will shift later into our third quarter, extending the back-to-school season through the end of October”.

As of September 1, 2020, Shoe Carnival operates 382 stores in 35 U.S. states and Puerto Rico.

Credit: Shoe Carnival