Shoe Carnival, Inc. (SCVL) has reported a 13.23 percent fall in profit for the quarter ended Oct. 31, 2015. The company has earned $9.39 million, or $0.47 a share in the quarter, compared with $10.82 million, or $0.54 a share for the same period last year.
Revenue during the quarter grew 5.90 percent to $269.71 million from $254.69 million in the previous year period. Gross margin for the quarter expanded 1 basis points over the previous year period to 30.15 percent. Total expenses were 94.37 percent of quarterly revenues, up from 93.01 percent for the same period last year. That has resulted in a contraction of 136 basis points in operating margin to 5.63 percent.
Operating income for the quarter was $15.17 million, compared with $17.79 million in the previous year period.
Cliff Sifford, president and chief executive officer, stated, "We experienced strong athletic and women's fashion boot sales throughout the third quarter which helped drive our fifth consecutive quarter of positive comparable store sales and on-plan earnings performance. We also benefited from our multi-channel sales initiatives which drove higher quarterly conversion rates, average sales per transaction and units per transaction."
For financial year 2015, Shoe Carnival, Inc. expects revenue to be in the range of $980 million to $987 million. The company projects diluted earnings per share to be in the range of $1.38 to $1.43. and This represents an increase of 9 percent to 13 percent over fiscal 2014 earnings per diluted share of $1.27.
Operating cash flow improves significantly
Shoe Carnival, Inc. has generated cash of $23.30 million from operating activities during the nine month period, up 27.86 percent or $5.08 million, when compared with the last year period. The company has spent $22.06 million cash to meet investing activities during the nine month period as against cash outgo of $26.45 million in the last year period.
The company has spent $13.58 million cash to carry out financing activities during the nine month period as against cash outgo of $10.94 million in the last year period.
Cash and cash equivalents stood at $49.04 million as on Oct. 31, 2015, up 68.57 percent or $19.95 million from $29.09 million on Nov. 01, 2014.
Working capital increases
Shoe Carnival, Inc. has recorded an increase in the working capital over the last year. It stood at $284.29 million as at Oct. 31, 2015, up 6.30 percent or $16.84 million from $267.45 million on Nov. 01, 2014. Current ratio was at 4.05 as on Oct. 31, 2015, up from 4.04 on Nov. 01, 2014.
Cash conversion cycle (CCC) has decreased to 121 days for the quarter from 124 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 161 days for the quarter compared with 168 days for the previous year period. At the same time, days payable outstanding went down to 41 days for the quarter from 45 for the same period last year.
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