In The News

In The News: Shoe Carnival, Crocs, Columbia Sportswear, and More

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Shoe Carnival senior executives declined to answer an analyst question about footwear vendors possibly extending dating on orders by 60 days during the company’s fourth-quarter conference call last week.

“From an operational standpoint, we have been working closely with each of our vendors to determine the full impact to our supply chain,” CEO Cliff Sifford told analysts.

On another note, the retailer will likely experience accelerated growth in its e-commerce business this year given the impact of COVID-19. In FY19, SCVL generated approximately 8 percent of its top line, or an implied $83 million, in e-commerce sales and had hoped to get above 10 percent in the next year or two. Shoe Carnival comparable store sales were up 4.5 percent through March 10 ahead of door closures through April 2. From late February and early March, the retailer experienced sales strength in women’s, kids and men’s non-athletic categories.


Crocs has amended its credit revolver and suspends share repurchases to preserve liquidity and flexibility. The company has also suspended its first quarter and FY20 outlook that was issued on Feb. 27.


Columbia Sportswear CEO Tim Boyle is lowering his annual salary to $10,000 and a number of other executives at the Portland, OR company are taking a 15 percent salary cut. COLM recently extended the shutdown of its North American stores until April 10 and intends to increase “catastrophic pay” to affected employees accordingly.


Rocky Brands, faced with a two-week, government-mandated shutdown of its manufacturing facilities in Puerto Rico and the Dominican Republic through April 6, is continuing operations and shipments from its 200,000-sq. ft. distribution center in Logan, OH. The facility had approximately 1.3 million pairs on hand last week to service U.S. work, duty and outdoor customers.


Wolverine Worldwide, whose brand portfolio includes Merrell, Saucony and Sperry, has taken a number of actions aimed at reducing its capital expenses until business conditions stabilize. Among them, WWW has delayed working capital projects and operating expense moves that will result in up to $500 million in cash savings and help the Rockford, MI company generate more than $150 million in positive operating cash flow this fiscal year. While anticipating a challenging business outlook over its next two fiscal quarters, Wolverine confirmed its supply chain, logistics and distribution centers are operational to service all customers, including its owned and third-party online channels that represent nearly 40 percent of all U.S. sales.