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Shoe Carnival Inc. (SCVL) has submitted its 10-Q filing for the quarterly period ended November 2, 2024.
The filing reports net sales of $306.9 million for the quarter, a decrease of 4.1% compared to the same period last year. This decline is attributed to a calendar shift affecting sales timing and a comparable store sales decline.
The company reported a gross profit of $110.4 million, with a gross profit margin of 36.0%, down from 36.8% in the prior year quarter. The decrease in margin was primarily due to higher buying, distribution, and occupancy costs.
Selling, general, and administrative expenses decreased by $3.9 million to $85.9 million, mainly due to lower selling costs, despite additional expenses from the acquisition of Rogan Shoes.
Operating income for the quarter was $24.5 million, a decrease of 12.2% from the previous year, impacted by lower net sales and soft demand in September and October.
Net income for the quarter was $19.2 million, or $0.70 per diluted share, compared to $21.9 million, or $0.80 per diluted share, in the previous year. The decrease was due to lower operating income and a higher effective tax rate.
The acquisition of Rogan Shoes contributed $22.3 million to net sales in the quarter. The integration of Rogan Shoes is expected to yield over $1 million in synergies for fiscal 2024.
Merchandise inventories increased to $406.6 million, reflecting inventory acquired from Rogan Shoes. Inventories for the Shoe Carnival and Shoe Station banners were slightly lower compared to the previous year.
Cash, cash equivalents, and marketable securities totaled $91.1 million at the end of the quarter, with no debt incurred. The company continues to fund operations and growth from cash flows.
Shoe Carnival plans to open new stores and rebanner existing stores under the Shoe Station brand, targeting over 500 stores by 2028. The company also continues to evaluate strategic acquisition opportunities.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Shoe Carnival Inc. quarterly 10-Q report dated December 6, 2024. To report an error, please email earnings@qz.com.