Shoe Carnival 2Q Profit Climbs On Lower Expenses

EVANSVILLE, Ind. (AP) — Shoe Carnival Inc. said Thursday that its profit edged up 1 percent in the second quarter, helped by improved inventory management and lower expenses.

The footwear and accessories retailer earned $982,000, or 8 cents per share, in the three months ended Aug. 1 compared with $977,000, or 8 cents per share, a year earlier.

Analysts expected net income of 2 cents per share, according to a Thomson Reuters survey. Analysts' estimates typically exclude one-time items.

Sales fell 4 percent to $152.8 million from $158.5 million a year ago and missed Wall Street's estimate of $153.6 million.

Sales at stores open at least a year, known as same-store sales, fell 6.4 percent during the quarter.

Same-store sales are a key indicator of retailer performance since they measure growth at existing stores rather than newly opened ones.

President and CEO Mark Lemond said the abscence of goverment stimulus checks and sales-tax-free holidays in nine of its states hurt its same-store sales performance.

Selling, general and administrative expenses declined to $39 million from $40.7 million.

The company plans to open about 16 new stores in fiscal 2009 and close eight stores.

Shares of Shoe Carnival gained 69 cents, or 4.9 percent, to $14.90 in morning trading. The stock has traded in a 52-week range of $6.05 to $18.45.