\nShoe Carnival, Inc. (Nasdaq: SCVL) (the \u201cCompany\u201d), a leading retailer of moderately priced footwear and accessories, today reported results for the fourth quarter and fiscal year ended January 30, 2021.\n<\/p>\n
Fourth Quarter 2020 Highlights<\/b><\/p>\n \n\u201cOur exceptional results for fiscal year 2020 were achieved thanks to the resiliency and dedication of the Shoe Carnival team, the unwavering support of our loyal customers, and our ongoing partnership with vendors. Further, our unique concept, operational excellence initiatives, and strategic investments in our CRM and e-commerce capabilities were critical through this period of great uncertainty. I want to offer heartfelt gratitude to our team members and vendors for their tremendous efforts, and to our customers for their loyalty and dedication to Shoe Carnival,\u201d commented Cliff Sifford, Shoe Carnival\u2019s Vice Chairman and Chief Executive Officer. \u201cWith consumer shopping habits upended by the pandemic, our team quickly shifted to meet customer needs by exponentially growing our e-commerce business and re-opening our stores safely by early June. Our multi-year investment in a world-class CRM platform played a significant role in our success during the year, driving increased sales and margins through segmented, personalized marketing.\u201d\n<\/p>\n \nMr. Sifford continued, \u201cAs we enter 2021, we remain financially strong and will leverage the invaluable knowledge we have gained to navigate through a changing dynamic. To date, our fiscal first quarter 2021 results are shaping up to show continued momentum and are on track for record first quarter sales and earnings. We remain focused on maintaining our financial flexibility and expanding market share, while placing an added emphasis on our merchandising strategy and in-store experience. In addition, we will continue to enhance our e-commerce capabilities, delivering growth well ahead of our previous expectations. With so much great work being done, I am looking forward to another strong year for the Shoe Carnival team.\u201d\n<\/p>\n Fourth Quarter Financial Results<\/b><\/p>\n \nThe Company reported net sales of $253.9 million for the fourth quarter of fiscal 2020, a 5.8 percent increase compared to net sales of $239.9 million for the fourth quarter of fiscal 2019. Comparable store sales increased 6.4 percent for the fourth quarter of fiscal 2020. The timing of the sales increase during the fourth quarter correlated with issuance of government stimulus toward the end of calendar year 2020.\n<\/p>\n \nNet income for the fourth quarter of fiscal 2020 was $7.4 million, or $0.52 per diluted share. For the fourth quarter of fiscal 2019, the Company reported net income of $3.5 million, or $0.24 per diluted share.\n<\/p>\n \nGross profit margin for the fourth quarter of fiscal 2020 increased to 30.8 percent compared to 29.1 percent in the fourth quarter of fiscal 2019. Merchandise margin increased 1.6 percent and buying, distribution and occupancy expenses decreased 0.1 percent as a percentage of net sales compared to the fourth quarter of fiscal 2019. The increase in merchandise margin was primarily due to lower promotional activity during the quarter but was partially offset by higher shipping costs associated with the increase in e-commerce sales.\n<\/p>\n \nSelling, general and administrative expenses for the fourth quarter increased $2.5 million to $67.6 million compared to the fourth quarter of fiscal 2019. The increase was primarily attributable to costs supporting increased e-commerce sales. As a percentage of net sales, these expenses were leveraged to 26.6 percent compared to 27.1 percent in the fourth quarter of fiscal 2019.\n<\/p>\n Fiscal Year 2020 Financial Results<\/b><\/p>\n \nNet sales during fiscal 2020 decreased $59.8 million to $976.8 million. This included a $106.3 million year-over-year decrease in first quarter net sales resulting from the temporary closure of the Company\u2019s physical stores due to the global pandemic, followed by a cumulative increase in sales over the remainder of the fiscal year. E-commerce sales increased 175 percent compared to fiscal 2019 and represented approximately 19 percent of net sales in fiscal 2020. Overall, comparable store sales declined 5.3 percent in fiscal 2020, comprised of a 42.3 percent decline in the first quarter, followed by a 6.9 percent cumulative increase over the remainder of the fiscal year.\n<\/p>\n \nNet income for fiscal 2020 was $16.0 million, or $1.12 per diluted share, compared to net income of $42.9 million, or $2.92 per diluted share, in fiscal 2019. Included in fiscal 2019 earnings was a tax benefit in connection with the vesting of equity-based compensation of approximately $1.9 million, or $0.13 per diluted share.\n<\/p>\n \nGross profit margin for fiscal 2020 was 28.7 percent compared to 30.1 percent in fiscal 2019. Merchandise margin decreased 0.6 percent and buying, distribution and occupancy expenses increased 0.8 percent as a percentage of net sales compared to fiscal 2019. The decrease in merchandise margin was primarily due to increased shipping costs associated with the higher level of e-commerce sales. The decrease was partially offset by being less promotional throughout fiscal 2020. The increase in buying, distribution and occupancy costs as a percentage of sales was primarily due to increased distribution costs resulting from recent investments at the Company\u2019s distribution center, and the deleveraging effect of lower sales.\n<\/p>\n \nSelling, general and administrative expenses for fiscal 2020 increased $0.5 million to $258.1 million. As a percentage of net sales, these expenses deleveraged to 26.5 percent compared to 24.9 percent in fiscal 2019.\n<\/p>\n Store Openings and Closings<\/b><\/p>\n \nThe Company opened four stores and closed 13 stores during fiscal 2020 compared to one store opening and six store closings in fiscal 2019.\n<\/p>\n \nStore openings and closings by quarter for the fiscal year were as follows:\n<\/p>\n\n
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