Shoe Carnival (SCVL) Trims FY16 EPS Guidance

Shoe Carnival, Inc. (NASDAQ: SCVL), a leading retailer of moderately priced footwear and accessories, today announced updated sales and earnings guidance for its fiscal 2016 ending January 28, 2017.

The Company expects fiscal 2016 net sales to be in the range of $1.000 billion to $1.003 billion and expects comparable store sales to increase slightly for the full fiscal year. Earnings per diluted share in fiscal 2016 are expected to be in the range of $1.36 to $1.38. In fiscal 2015, net sales were $984.0 million, comparable store sales increased 3.0 percent and the Company earned $1.45 per diluted share. This fiscal 2016 financial guidance does not include any potential fourth quarter non-cash asset impairment charges, which are typically evaluated at quarter-end.

(Street sees FY16 EPS of $1.49 on revenue of $1 billion)

Shoe Carnival President and CEO Cliff Sifford commented, “We expect net sales to be at the low end of our previous fiscal 2016 guidance, as an improvement in December sales was not enough to offset the softness we experienced in November. Combined comparable store sales for November and December decreased 1.1 percent. We promoted heavily in December, resulting in a projected gross margin decline of approximately 210 basis points for the fourth quarter. We have aggressively managed our inventories and expect our per-store inventories to be down mid-single digits at the end of the fiscal year.”

The Company will report its full fourth quarter and fiscal 2016 results on March 16, 2017.

The Company does not plan to provide preliminary financial results in the future other than in unique circumstances, or in the event of a material event that requires disclosure. As previously announced, members of the Shoe Carnival management team will present at the 2017 ICR Conference on Wednesday, January 11, 2017 at 11:00 a.m. Eastern Time in Orlando, FL. The audio portion of the presentation will be webcast live, and a replay will be available on the Investors section of Shoe Carnival’s web site at www.shoecarnival.com.

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