Shoe Carnival (SCVL) has reported a 3.05 percent rise in profit for the quarter ended Oct. 29, 2016. The company has earned $9.67 million, or $0.54 a share in the quarter, compared with $9.39 million, or $0.47 a share for the same period last year.
Revenue during the quarter went up marginally by 1.78 percent to $274.52 million from $269.71 million in the previous year period. Gross margin for the quarter contracted 28 basis points over the previous year period to 29.87 percent. Total expenses were 94.37 percent of quarterly revenues, down from 94.37 percent for the same period last year.
Operating income for the quarter was $15.45 million, compared with $15.17 million in the previous year period.
"Our third quarter operating results were below our expectations due to slower sales of seasonal merchandise in the second half of the quarter," said Cliff Sifford, Shoe Carnival's president and chief executive officer. "We generated a comparable store sales increase in athletic merchandise in each month of the quarter, although this was offset by a high-single digit comparable store sales decline in our boot categories."
For fiscal year 2016, Shoe Carnival forecasts revenue to be in the range of $1,002 million to $1,006 million. The company expects diluted earnings per share to be in the range of $1.46 to $1.51.
Operating cash flow declinesShoe Carnival has generated cash of $21.45 million from operating activities during the nine month period, down 7.95 percent or $1.85 million, when compared with the last year period. The company has spent $17.43 million cash to meet investing activities during the nine month period as against cash outgo of $22.06 million in the last year period.
The company has spent $39.33 million cash to carry out financing activities during the nine month period as against cash outgo of $13.58 million in the last year period.
Cash and cash equivalents stood at $33.51 million as on Oct. 29, 2016, down 31.66 percent or $15.53 million from $49.04 million on Oct. 31, 2015.
Working capital declines
Shoe Carnival has witnessed a decline in the working capital over the last year. It stood at $268.68 million as at Oct. 29, 2016, down 5.49 percent or $15.61 million from $284.29 million on Oct. 31, 2015. Current ratio was at 4.02 as on Oct. 29, 2016, down from 4.05 on Oct. 31, 2015.
Cash conversion cycle (CCC) has decreased to 36 days for the quarter from 121 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 74 days for the quarter compared with 161 days for the previous year period. At the same time, days payable outstanding went down to 39 days for the quarter from 41 for the same period last year.
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