Shoe Carnival Posts Record Q2 Sales
The 378-door Shoe Carnival chain, which has posted $1.16 billion in sales over the trailing 12 months and is on track to approach $300 in sales per square foot this year (up from previous high of $245 in FY19), says it can sustain operating margins of at least 8 percent over the long-term. Its previous target was a 6 percent operating margin by 2023.
Shoe Carnival senior management attributes the likely improvement to technology investments and strategy shifts, including the dialing back of regular promotions. In Q2 ended July 31, comparable store sales rose 11.4 percent from Q2/20 and were up 25.5 percent from Q2/19. All product category revenues rose double-digits with men’s non-athletic up 30 percent from Q2/19, driven by men’s canvas, seasonal and all boots. Basketball, Skate and Core categories paced the men’s and women’s athletic segments. Overall Q2 sales increased 10.5 percent y-o-y to $332.3 million as comparable store sales increased 11.4 percent.
In addition to record sales in Q2, the retailer saw Back-To-School sales surging. Through the first three weeks of August, Shoe Carnival said overall store traffic was up 50 percent y-o-y with comparable sales 60 percent higher y-o-y and up 23 percent versus Q2/19. The company, which is planning for a mid-single digit increase in H2 boot sales, says it will “re-ignite” its store growth plans in 2023 and will have Nike shops in 100 of its doors by Spring 2022.