Revenue during the quarter went down marginally by 2.72 percent to $253.39 million from $260.47 million in the previous year period. Gross margin for the quarter contracted 53 basis points over the previous year period to 28.48 percent. Total expenses were 94.78 percent of quarterly revenues, up from 93.36 percent for the same period last year. That has resulted in a contraction of 142 basis points in operating margin to 5.22 percent.
Cliff Sifford, Shoe Carnival’s President and Chief Executive Officer commented, “While February was a very challenging month due to the delay in the tax refunds, we are encouraged by the improvement in our sales as we progressed through the quarter. Comparable store sales for March and April combined, which includes the shift in the Easter selling season, were up low single digits. Our focus on inventory management resulted in higher merchandise margins and a per-store reduction in inventory for the quarter. We continue to manage our inventory effectively while keeping our product offering fresh and relevant. Looking forward, our consistently strong financial position provides the financial flexibility to support our future strategies and further enhance shareholder value over time as a result of our dividend and share repurchase programs.”
For fiscal year 2017, Shoe Carnival, Inc expects revenue to be in the range of $1,002 million to $1,018 million and its diluted earnings per share to be in the range of $1.30 to $1.45.
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