Shoe Carnival, Inc. (SCVL) swung to a net loss for the quarter ended Jan. 28, 2017. The company has made a net loss of $0.92 million, or $ 0.05 a share in the quarter, against a net profit of $4.17 million, or $0.21 a share in the last year period. On an adjusted basis, the company has earned $1.31 million, or $0.07 a share for the quarter. Revenue during the quarter went up marginally by 0.23 percent to $234.20 million from $233.67 million in the previous year period. Gross margin for the quarter contracted 169 basis points over the previous year period to 27.51 percent. Operating margin for the quarter stood at negative 0.63 percent as compared to a positive 2.80 percent for the previous year period.
Operating loss for the quarter was $1.48 million, compared with an operating income of $6.55 million in the previous year period.
However, the adjusted operating profit for the quarter stood at $2.09 million.
"Our comparable stores sales performance was in-line with the updated expectations we provided in January and our gross profit margin came in better than we anticipated," said Cliff Sifford, Shoe Carnival's president and chief executive officer. "Our team took decisive actions to promote our seasonal boot footwear to ensure we ended 2016 in a clean inventory position. We believe the strong athletic footwear cycle we experienced during the year will continue into 2017 and we are pleased with the early results from our casual sandal footwear."
For financial year 2017, Shoe Carnival, Inc. expects revenue to be in the range of $1,028 million to $1,040 million. The company projects diluted earnings per share to be in the range of $1.45 to $1.54.
Operating cash flow improves
Shoe Carnival, Inc. has generated cash of $63.79 million from operating activities during the year, up 8.94 percent or $5.23 million, when compared with the last year. The company has spent $21.83 million cash to meet investing activities during the year as against cash outgo of $27.65 million in the last year.
The company has spent $47.83 million cash to carry out financing activities during the year as against cash outgo of $23.47 million in the last year period.
Cash and cash equivalents stood at $62.94 million as on Jan. 28, 2017, down 8.53 percent or $5.87 million from $68.81 million on Jan. 30, 2016.
Working capital declines
Shoe Carnival, Inc. has witnessed a decline in the working capital over the last year. It stood at $265.46 million as at Jan. 28, 2017, down 5.91 percent or $16.69 million from $282.14 million on Jan. 30, 2016. Current ratio was at 4.08 as on Jan. 28, 2017, down from 4.21 on Jan. 30, 2016.
Cash conversion cycle (CCC) has decreased to 58 days for the quarter from 61 days for the last year period. Days sales outstanding were almost stable at 1 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 75 days for the quarter compared with 81 days for the previous year period. At the same time, days payable outstanding went down to 18 days for the quarter from 20 for the same period last year.
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