Earnings call transcript Q4 2022

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Operator

Good morning and welcome to Shoe Carnival’s Fourth Quarter 2022 Earnings Conference Call. Today’s conference is being recorded. It is also being broadcast via webcast. Any reproduction or rebroadcast of any portion of this call is expressly prohibited.

Management’s remarks may contain forward-looking statements that involve a number of risk factors. the projected results in cause different be could those from such factors company’s to actual materially These statements.

the SEC included Forward-looking in statements cautioned forward-looking the not factors on undue Investors of company announce as of release the or statements, any conjunction in update statements to considered today’s risk any company’s in these or with The the to press obligation contained should discussion of disclaims are date. developments. also today’s any today’s release. to on filings publicly factors to and be revisions which reliance only or earnings events place conference forward-looking risk speak discussed to reflect call future press today’s

over CEO Worden, President Mark I would to begin. now Mr. of remarks. Mr. Carnival like and for you opening may conference Worden, to Shoe the turn

Mark Worden

Shoe welcome quarter Good to earnings morning Carnival’s conference call. fourth and XXXX

Jackson, Carl and today’s me Financial Administrative are Officer. Chief Merchandising and Kerry Officer, Chief Joining call on Scibetta,

today out nearly me X,XXX Let by start members. team our thanking

XXXX, exceptional, meet and experience Station locations country experience, shop ensured convenient the Shoe to branded service across stores Carnival needs. and was Shoe more During customer the a at modernized our to products, our shopping freshest customers’ dedicated always with shopping they

XXXX in tier look to fiscal start top growth by XXXX multibillion provide we we the strategic As positioned sector. our with returns and ahead, and execute a well retailer dollar our I shareholders to are plan our become to

now the from would highlights XXXX. I to begin like reviewing by

just customer freshest we to customers, more the ago. day identify engage us customer to for better these over XX% loyalty meaningful them optimal base product surging XX better years to and million, enabling better segment during Every from our First, membership week, about we our the are grew with them and with over base, messages of every products. learning our XXXX, X

basis our prior. our plan targeted continue just points including stores internal CRM of basis This QX and gross to levels a acceleration analytical year capabilities and promotional into developing the XXX traffic that activities our that and growth advantages gross for years most the upgrading to marketing and promotional technology, and X We year, for building as that QX, capabilities online, margin XXX for margin talent. drive of into segmented the up sustainable. The deliver helped improved elevate compared points our translated period further our is margins profit year the are reassurance growth in our

basis higher gross the In fact, X,XXX points been of XXXX. for last to eight each quarters margins XXX versus have now

were margins QX our in gross from the competitive our increasingly highest QX price discounting XX-year set. results despite history deep

only already nearly Station launching. we customers few captured short loyalty after our a So, million into have Shoe X.X program months

this for Moving expertise returns. see forward, to relationship as continue expanding and delivering customer our driving a accounts, will key lever tier traffic shareholder and customer build we top

X-year Second, of This our share prior growth or resulted to continued results. in period customer sales high gross ago of growth achieved the growth years plus million growth over $XXX competitors’ XXXX and versus XX.X%. market our X rapid significant compared count the margins

the accessories and selecting Carnival in Customers for markets for and best fact, of footwear branded moderate or sales Specifically, XXXX department from Shoe the brands. of from stores family half the looking at competition the Shoe in footwear resoundingly corporation sales other the competition XXXX, X-year growth public us over declines. most retailers loved to their the and competitors, achieved none many Station horizon our had are

$X see approach growth part billion approximately acquisitions. a growth $XXX roadmap, our XXXX. million balanced from of of growth the growth continuing We has balanced this strategic sales core in Our approximately been past X organic sales years surpassing million over with $XXX of in and sales as

our achieved just This growth $X.XX of XXX% years EPS X XXX% result versus and X ago. share annual per earnings of years growth earnings is profit ago versus guidance. Third,

earnings In XXXX encouraged earnings most than despite combined. GAAP generated and profitable storms per shopping our share fact, QX our QX that the period. peak our earnings were during was are holiday XX XXXX total history I more most customer years the of during the the disrupting prior in winter

profit X.X% Fourth, has shareholder the this that doubling in X and made X strategic report returns ending achieved last to pleased XX.X% I compared a tier throughout am the year ago. years in I profit Operating years our to guidance would I have the increased commitment margins operating been generating result sector. quarter, past the achieved. shareholders full shared to our top executing plans of at

We elevated our margins successfully X our top last the sustained and profit segment. XX% operating over shareholder the years in have now to tier returns for

Last, debt. is the strong. zero sheet our at marking consecutive We of no end had balance year XXXX, the debt XXth of

free categories debt across levels We generation no we cash have rapid progress our inventory today. peak we normalizing. season, and And see into back-to-school flow selling as

We economic are mindful uncertainty the markets. inflationary of and in the environment

acquisitions XXXX. half As investment XXXX, accelerated the have operationally, organically fund in second the and growth capital our desirable us we of available. first for such, become positioned and both this a XXXX of to half Financially approach with modest has if into updated and to very targets targeted well

and few Kerry about add XXXX a Carl to now further Turning detail. comments before

We are of prospects the Our high growth strong this see current and counts growth store inflationary environment. long-term customers business and of year. fundamentals growth despite

year overview we that to remain the third and a will double-digit operating for per Our is outcome XXXX. provide our likely earnings share track detailed shortly. on is of guidance over $X the for be XXXX most see Kerry margins consecutive

of driver I corporation. stores on growth from XXXX store new ahead. in that historical stores the to down stores’ time the pacing new leverage our self-fund contributor by duration years This, of in took in Station increasingly profit for are the first expansion within double-digit Shoe exceeded to years Shoe new generation to far rapid The successful opened ahead. profit operation, X opening core deliver new the XX fleet Carnival launch cutting contribution our profit Station to of the Shoe that share new solid Historically, the contributions from turn, us will to stores to the stores, excited XX%. be enables in average, double-digit am have results. launch, years of profit addition approximately generate new The months the the

and stores XX example, self-fund fund X in XX For XXXX openings store opening so XX the year. more in can on. new can opened openings XXXX this than in store XXXX stores

methodical profit top returns site and activity, our to to continue for to strategies allocation take We to a ensure tier shareholders. selection, approach new to M&A capital

have XXX be stores by to year organic of planned XX a As surpass shared guidance. XXXX growth a roadmap previously, range we with through growth will acquisitions. and this backloaded we a to this store surpass XXX additional primarily our to of had stores XX stores store year We and combination in targeted

of make on rollout. currently. vendors, over program experience modernization our with differentiated fleet compelling XX% the significant progress from We fleet Feedback customers and this store with our to continue complete have been for

plan the As plan complete and of such, to end the fleet rollout XXXX. our proceed modernization by fiscal with we to of XX% over

April. to CFO exceptional Carnival. years behind week, organization. the leaves in Kerry has and company announced Gast Jackson, so shared, be is in our of for forward contributions community the orientation in Mr. I Finally, joining Erik Kerry’s am in that M&A make retail President joining and to May at him XX at after finance and retiring our Last will strong years of plus the I introducing roles, I Farm, CFO, been the for Vice results in Erik legacy finance $X addition deep earnings currently in him our as retailer service a to and excellence Executive Midwest. next his thankful Shoe a look to is he plus named previously his the experience management QX call Erik CFO Fleet billion Erik’s XX scheduled our and and our team. investment May.

to discuss Carl? With that, will performance ask I further. our Carl

Carl Scibetta

you, Thank Mark.

Mark As our are evidence that work. results continues today’s strategy highlighted, to compelling

fashion supply deliveries period demand demand to During positioned again product the in continue during to shift This the same have consumer to to this a was to sales the in experiencing We been move XXXX. customer years points we of improvement XXX the continue non-athletic categories. We in the the basis we several this change. non-athletic advantage improve. to quarter, issues shift move take see as past compared anticipated fourth in product as chain the and inventory did saw

team the outstanding collaborate and of inventories continues team closely The of ensuring The and deliveries with Our as managing we receipt the desired the are levels. through store result as modernization appropriate plan move further stores. flow will growth fiscal time consistent ensure stores stocked see execute to our enables appropriate will through year. to our merchants with our are as vendor will reducing This well products merchant consistency of partners, offerings aggressive our product our as Diligently monthly reduction support XXXX. flow inventory normalization plans. to move that we most

both and carryover inventories are in aged Importantly, line. seasonal inventory

we deep liquidate As provide discounts forward. need do going to of result, distressed see not a no to inventories have and a glut goods

Turning to results.

Women’s non-athletic down was in and up were shift athletic dress the comp mid-XXs, non-athletic for in the up singles up sales versus the versus the XXXX up versus non-athletics shoes athletic categories low XXs down in down Casuals in footwear high fourth were attributed Sales women’s the in up the Comp low our to XXs. sport mentioned, As XXXX. mid-XXs. the up the quarter. were low-XXs, XX%. sales drove lower were sales XXXX department, to in were the singles By in I in were anticipated from categories the non-athletic in and continued boot mid-singles. the sales and boots categories athletics in sales low in

this to Men’s we high in dress XXXX. the versus and consumers’ Children’s were and serve, lead casuals footwear. in and further than XXXX. markets children’s children’s less almost mid-XXs. which to high were non-athletic were Shoe Men’s up versus low XXXX increases the non-athletic down up children’s singles XXXX. athletic sales up in in up in down Sales sales the mid-XXs. non-athletic the drove continues X% infants’ product XXs the were reflects versus In athletic significantly. in footwear. XX% the sales All were XXX% were categories Casuals move over up the was drove compared singles mid-teens. to Carnival in the sales Men’s up way boots regarding increase, Adult up non-athletic the were up men’s

trends are continuation fashion anticipate non-athletic the the results product flow, seeing fiscal XXXX. sales for of in categories we strong improved and we the the With

result quarter we As for ran eight Fourth to trends versus continue excellent up deliver the margins. strategy. XXXX our margins basis our on product product over points XXX national past of seen have we quarters, promotional

with engage growth. drive smart are program XX to proof over for these provides customer the CRM that not to these valuable X have million The utilizing and effective dilutive. through us This loyal we consumers enables continues strategy customers promotions best-in-class seen and margin the fact our into this data insights Our that of over have years success is levels margin transform model, Carnival Shoe us that. seen we

weather move slow into XXXX, well the as the fiscal of season. climate as economic uncertain spring As to start led we a cooler has

inventory delayed. year, our the important While has demand versus the categories last improved been position consumer in has

delay the years realized this in time which period. sales spring acceleration seen then, have We the in we came anticipate and summer later previous

athletic In the addition, selling the fall offering improvements stronger much will a and back-to-school moving chain into season. supply provide

will of our call Kerry? over to Kerry for a With review turn financials. that, the I

Kerry Jackson

driven highlights profit results financial the most quarter quarters as to Carl. our Similar as and QX versus share the you, holiday history I be you excited Thank a start season. from pandemic. promotional relevant another in the despite gross will prior XXXX this see the we successful I’m of normalized period previous to to the year, margin by comparing with highest

in were only – year sales surpassed sales a comparable highest compared from increased with the the $XX.X the double-digit These million in by QX by were store sales sales highest pre-pandemic sales our Net increase from last QX increase Station in year-to-date store Carnival store of quarterly and is million to driven XX.X% year. QX of the and comparable quarter fourth banner. million quarter or increase $XXX.X resulting second banner history, This second this sales XX.X% sales third of XX.X%. Shoe Shoe comparable our XXXX $XX.X

Christmas, QX. Total of XXXX been our blast XX% XX% increases into did leading However, sales this in results ended closer buy to winter apparent Arctic pricing. for along upper into quarter. We trending expectations ramp-up season sales below was but up trend sales last-minute positive holiday the in waiting of halted It and Christmas. the the area, of the the us to for severe over the our snow brought nation shoppers Christmas, shopper. weather ice impulse promotional much have saw attribute the below were Christmas lost increase to in temperatures dangerous after which leading fall to finding sales with net the to just hope and to but prior We we until a the Christmas

Our XXX came compared and a QX from XXXX. buying, with our fourth quarter basis XX.X%, margin gross profit point margin to distribution was occupancy increase the This increase all of flat. merchandise

record Our this was XXX QX year increase than last year. to points deleveraging profit distribution buying last active margin basis QX basis year higher compared gross despite points by costs QX XXX our

in $XX.X and acquired sales QX X.X% compared XXXX. $X.X in XX.X% in The or was Station with expense QX million in million QX primarily in to store-level sales wages advertising XX.X% was investments of X.X% Shoe SG&A QX million compared banner increase $XX.X the of SG&A to of or or year. last sales was of sales income $XX.X or XXXX. million expenses along operating for to due

For double XXXX. the in double-digit which This than run full operating more historical operating is of our year, in rate. XX.X% was with expectation our margins, compared our annual line fiscal to margin are X.X%

the athletic income better fourth in earnings to earnings is year. inventories. up and compared the the increase of it the or remaining to quarter the quarter fourth fourth This $XX.X fourth XXXX the XXX% $X.XX income quarter or XX% stores quarter a in-transit acquired inventory basis is We diluted the of the million, XXXX. history the adjusted for Station out inventory last Shoe last in of GAAP highest net quarter increase of Of compared $XXX.X on which this Almost earnings share for highest the our an fourth was million share, in with children per Net year inventories. the compared quarter per million is of second year or closed to $XXX.X increase, XXXX. and and opened of part diluted in

and Generally, second the on-order year with merchandise that in the merchandise. supply have chains filled this with of the came of delayed current half along delivery

our a in more inventories after are our have avoid a us and inventories in selling keep season athletic purchases manage fashion, partners the our to in markdowns our we plan but with together that have also first September vendor order We with to unnecessary worked level confident fresh allow will has and completed. back-to-school compelling half return children the to typical

activity we year. but initiating XXXX Today, week. the sales our remember fiscal Please exclude company extra are XXXX store that will the total The guidance. includes XX weeks, XX include this comparable results for will weeks

account see in wide we flat uncertainty take not feel outcomes conservative EPS and expect fiscal that will economy we to the of in view in beyond, QX at is our this sales economy it the with will guidance Given into a XXXX. a time, we and in stronger and prudent a range

to approximately and our more new comparable lead stable will will view to EPS expect X.X%, up economy store positive increase optimistic scenario, will growth. sales Under robust this X%. store more we increase a more Our and is sales

comparable to Driven billion $X.XX. expenditures for to from XX.X%, should to $XX from to expectations flat our billion. earnings range see sales last be decrease income profit will are flow we $X.XX the decreases free range part annual to of Implied X% million. $X.XX After guidance, $XXX fiscal Summarizing X% inventory, range to XXXX year diluted store from million margin $XX to to up and in $XXX year our share year, slightly to at million. expect margin will down Operating between operations sales by for per in to XX%. and Gross approximately $XXX $X.XX cash expected fiscal from $XXX million, we capital million we flow be expect million to cash compared to sales XXXX. in

final guidance. on One note

earlier, As to start seen mentioned our a Carl had we quarter. have first slow

QX ranges. EPS QX and in in decline guidance into last sales These expecting compared net factored decline year. our expectations to are are mid-single-digit a currently for QX We a annual

Carnival closing, pre-pandemic profitability are In to continuation results a Shoe our levels. quarter for compared transformational of fourth

our through top-tier we acquisitions. multibillion expansion confident ability XXXX. are execute become in will and profitability this We in long-term a modernization of combination and And on strategy a with growth store organic retailer a to achieve to selective

is today comments final My personal.

mentioned years in a was soon sales. Mark retiring ideas. As with XX stores grand after at we will be million those earlier, company I I small Carnival, XX $XX joined of doing Shoe in CFO. about XX When XXXX, It as had

the I Mark, the Board Station. of baton Carl In think the into to better long with and it a been friends together and to have in recent As so never my company, I I asset is to I at is a built areas. the has an accounting me I team work the acquisition owe and to how future. sum The always Carl, the each to working be to I personally. – helping hardworking during want of the its company can’t so and greater people. to to management Shoe and and look team, than some them with of has and love could due many an weeks, growth a each rest Shoe of thank this of the back, stronger person I particularly to talented and hand career. fortunate has the for management of me seemed by for people most knowing profitable We wish that drive which the Mark team most I realize no Erik nicest, future. leave led different. few excellent and And been Directors much was Carnival I coworkers company have I my along Gast. the thank finance other. owe I broad partner will of notable people of parts

With I’d to that questions. call like open up the said, for

Operator

comes Our proceed. the Seaport Instructions] [Operator Please question line from first Kummetz Mitch Research. from of

Mitch Kummetz

for And want my for all Kerry, your best wish question. help the over want of you the Hi. thanks taking I to I Yes, years. thank you to luck.

fourth first quarter. The is on question the

the in X-year think year-over-year? comp press release, I was you a it gave on What basis.

Kerry Jackson

XX.X% a down were basis. year-over-year We on

Mitch Kummetz

Okay. the on mid-singles, assume how think quarter? I’m quarter-to-date? the the is sales earnings do could of sales, balance if or little mentioned the the kind down of don’t that mid-singles guide you expect QX, trending being you’re down hoping be – over else then earnings is some a year-over-year. Or And that to or improvement wondering down. I know for then down you does on I there you you the helpful. was elaborate And Anything I a it down would lot. be

Kerry Jackson

Well, the we’ve what now a this And we’re seeing our it with trending seen we’re way Carl as right higher the expectation. bit is, said, story than weather little before.

expect warms up, better, digits. at to trend be it to our As still but sales down expect we we mid-single get

We’re to for we the as we not outcomes just in going want QX, annual of we’ve but see fact EPS the alert a given We in that that to the quarter guidance. will we quantify that range yet. believe have do down

Mitch Kummetz

Okay.

Okay. I back between mistaken, non-athletic mentioned side. athletic, I Maybe two, ‘XX, in but it with quite for on what let me relates particularly you’re more to more to I a gotten performance athletic I’m you bit Can there back-to-school. that think think just than a not that’s just bit seeing as by expect athletic the in you If you sneak in inventory provide the color stronger kind little starting the in better expect flows? said you Carl, kick of Carl. think half, for one – you maybe

Carl Scibetta

Mitch. Sure,

correct. absolutely You’re

on a frame year, and had of selling athletic forward, disruption This in missed late actually the starting athletic As fourth we’re deliveries that we actually lot early. back-to-school period. deliveries move the and goods through in deliveries time and footwear experiencing year, what the side, in in we coming back-to-school some cases, the our on last quarter time

opportunity athletic quarter the third as quarter move from out we we fall second into season So that’s of and an standpoint. the throughout think

Mitch Kummetz

alright. Okay, Thanks.

Operator

Our Williams of next Sam Poser comes Please the from proceed. question Trading. line from

Sam Poser

– what the and In year-over-year? questions. was missed Thanks the Q have margin in QX, for my merch it, might I taking but

Kerry Jackson

profit flat. well, increase costs gross gave We – distribution were entire in all as book margin, the buying and was occupancy – the the increase merch

Sam Poser

In the quarter?

Kerry Jackson

In quarter. the

Sam Poser

XXrd more in then how – And you a Thanks. The Okay. dollars? – are is couple a the on of the week, week color little valuing what guidance. that

Kerry Jackson

about $XX million. It’s

Sam Poser

kind the first about the should are I should of Okay. mean quarter – how and you that? margin quarter margin how think we in current relative I be so we mean you the thinking And gross the – in first you Are on so the at looking Thanks. and then forth? about same guidance, to saw in trend gross – the

Kerry Jackson

Yes.

running still profit year. we an are last elevated like did We gross

So, are the in we sales. it really stores is in a the the traffic that seeing decline

Sam Poser

coming I Carl, in do athletic maneuvering that kids you year the like athletic you inventory boots down, like the to – then in of is that. inventory the to the then stuff receipts So, how first of of bringing most first and or markdowns this how have the the and out and get mean are improves, not part down receipts – take so in

Carl Scibetta

Yes. category inventory, age seasonal stated I is category Sam, the line. and from an in have well a as

had delivered time, of is at ago. lot pointed which In both out and a we seasonal inventory carryover areas. on-time those elevated in a Kerry inventory same was of We delivered it delayed and than the fact, the and year a lot the less product product

that vendors enables have program to us inventory, We going worked maneuver, into timeframe. keep put ourselves sell as we together the a to all we be get back-to-school want very that our and head freshness with through where to closely

for have need to with partnership our push So, with out the isn’t inventory we the had there vendors. markdowns

Sam Poser

QX question, comparing or ‘XX? about were talking year-over-year on versus were you you when – earlier comparing are you When Okay. the

Kerry Jackson

‘XX But the think now will important we to are ‘XX on. – new referencing comparable benchmark, as – and this against into be We comparing that’s recognize ‘XX we ‘XX ‘XX, in ‘XX we ‘XX. now rest against the compare ‘XX, what from in it year that the will be best QX Anything ‘XX. results, was QX was was a

Sam Poser

In in margin what of it on to breakdown want clarify or the gross margin BD&O is points Was ‘XX, improved just clarify flat ‘XX? just the year-over-year a I margin you of Alright. basis, something. and merch XQ can basis QX was versus QX, year-over-year? versus XX that the the gross

Kerry Jackson

saying, know wanting ‘XX Is to that versus you Sam? ‘XX? are QX you are of what said, you So

Sam Poser

Right. margin BD&O. The merch versus

Kerry Jackson

The BD&O Yes. points. XXX points, we We merch basis margin a saw up basis. deleveraged basis improvement was by GAAP XXX basis XXX on and points

Sam Poser

very Your gross I Thank – margin alright. much. you appreciate it.

Kerry Jackson

Yes. Sam, the you have ‘XX, had to numbers we decide use Station, the if or you are the same because in of of QX Shoe adjusted acquisition either talking had with way. some earnings which about we we adjusted margin GAAP – of – changed

Operator

line comes question Please Chartier Monness, proceed. Our Jim next from and Crespi Hardt. from the of

Jim Chartier

Good morning. questions. taking my Thanks for

quarter and in performance well the above gross your margin was the X-year year improvement. year fourth the strongest So, full of

some that? about And the So, in are? headwinds we are and expenses some I are the am curious what from be tailwinds thinking benefit half, of as you what offset first some may facing you of then potential distribution lap that the how the those of freight

Kerry Jackson

you in right, supply will of significantly absolutely for healed. have higher we we And first the Jim. Well, a tailwind had where we us – That go become the freight ‘XX, chains into ‘XX, – half saw costs. are as the

that a on ‘XX. transportation for labor basis and elevated see against to go-forward levels, benefit still is against going fuel will it’s not elevated, ‘XX but to back go a is we While

of some by retail is Now, to within are our supply more one down as coming into that opportunity we that merchandise we become wanted normalizes, lower, kind will but that account of going costs more take that guidance also. leaving a chain the are offset to be things ourselves lower the margin, slightly we

to are mean why guiding way are gross we doesn’t we are changing about It margin. So, a operating. XX% that’s we profit the

see We opportunity pressure more are on as merch margin. we more the may that retail our a little normalizes giving

Jim Chartier

like And missed by Station Okay. in fourth something then or looks it Shoe like million $X your quarter.

does And outlook would business around quarter be in then the color any happened Station the Shoe great. fourth the it what change So, going with for forward?

Mark Worden

at it’s ahead Mark. what ended where far Jim, landed we just The The below integration and of approximately wanted we Hey expected million. slightly where Shoe Station count customer $XXX of ahead the wanted. we

to As any the have new Kerry seasons. weather of risk quarter mentioned, putting some to disruptions the into think as the last the decided we call, I core the opposed this launch we fourth to mentioned in shoestation.com throughout February. I future And launch. fiscal And launched beginning go-forward basis, year new successful On we That our are new smoothly a enthusiastic are data got bright great in have internal It’s rapidly success. Shoe this exceeding capturing a begin we and had postpone incredibly expectations, and Station. about customers, we to of ahead.

Jim Chartier

Great. Thank you.

Operator

Please Our line comes the of Mitch Research. from Kummetz next question from Seaport proceed.

Mitch Kummetz

taking questions. Yes. Thanks my follow-up for

expect can you year understand of more bit on flat up Just color get kind a QX sales QX? of more or mean sales shape to to kind a little growth of do the the starting Any year, from you full of and course sales progressively the step is – get the that? you do me year? help shape X.X%, just change progressively sort the maybe on sales of to of year, to better to the over – how QX I there the if mid-singles think big we are were down

Mark Worden

Hey to. Mitch, Mark. good love morning it’s would We

our If challenges and we in year, you athletic business back-to-school. in And important to the most were disruptions disappointed of our some part kid that with we had ability significant athletic delight to recall, customer year. last our supply

also position of chain season where product season. the as we the all had our back-to-school the this want of that biggest in expect to, on well some world’s as alluded from leading Carl the it, significant surrounding challenges into significantly most back-to-school growth And June-July vendors improved timeframe. customers brands and are As we therefore, choppy expecting supply we

a better We that. in for much are place

last that So, us is the Kerry a the year being really primary that And we curtailment see is That macroeconomic will challenges a of see provide situation. real we reason have can timeframe. tied But year. this specifics. more benefit based in to don’t acceleration. a that for rectified confidence on lot some significant we

Kerry Jackson

you see the the also QX. way. also comps being Mitch, the the is the flowing and that in was look – so of at wildcards There we see on better early into We opportunity opening comps, when stores. new QX the

second So, also. those the economy into to we good economy And shape, negotiating a later in year in if guidance, lot is end of this could of be felt the right, push are ‘XX high the if we early get to we deals we the that the set wasn’t would see half.

new So, how it’s dependent stores upon open. our could we view of many economy the and

Mitch Kummetz

Mark, then mentioned was guide for is the embedded projection you in What And ‘XX $XXX Station kind in Shoe Station? that million roughly sales Okay. Shoe of ‘XX.

Mark Worden

growth, plan we two are for and the I as Strong is think guidance openings largely well store Station. And have and about double-digit new growth. capturing Station are plus most Shoe we in drivers a are as excited now Shoe growth running shoestation.com biggest up

Mitch. So, it the in put digit we low-double range got that, a on to

Mitch Kummetz

Carl, And questions. couple a just Okay. merchandising then of quick

So, I month am February. believe QX, think February continued if boots a boots that strong you wondering ago. said particularly weak. were has for a that into I was early for I QX, pretty year

Carl Scibetta

quarter did spring trend that freshness. newness correct. the customers looking we You saw early and continue were the boot into the are for season part fourth The as of in

waiting issue for that we for year. boots are continue. So, boot new Frankly, did fresh next

Mitch Kummetz

sandals, I then in important QX. it’s terribly for you And Okay. don’t think

a QX. for that’s – very curious April like am quarter, of And April an I the the the month so? I off important think not I balance balance I maybe then start good case. But then is guessing am quarter, me, to sandal year in sandals and the the feel in it’s probably weather-wise. a a I the on guess if that’s so you remind I lot best that March. But am wondering of compare for was not the if business and ago, easy more

Carl Scibetta

Sure. Sandals areas. North. stores yes, in how seen that in have are majority good those – – and of sandals in a And is have weather the Midwest you the our

based the sandal did areas May really in seen sandal of seem areas where the this Last very weather, again business be to quarter. end affects business. directly have certainly came the through the into late, year. In performing. that So, decent And second we could and some that sandals absolutely, timeframe April happen year, of on few very weather, kick it of

Mitch Kummetz

the then housekeeping. Is any asked impact the about impact earnings XXrd sales. for Okay. Kerry, I thing, Sam on last year? know just there you on And week’s

Kerry Jackson

a It’s material benefit immaterial. to EPS, not guidance. to the There’s it’s but overall slight

Mitch Kummetz

Alright. Okay. Thanks again.

Operator

Our final line the of Williams question comes from Please Poser Sam Trading. from proceed.

Sam Poser

is stores, on XX many the the range, stores what’s I have – – how baked you is range count? XX wonder Is the into mean guess XX new is question said have like and the the new guidance the XX store Well, guidance? – of I new I – of to or the baked you reflective

Kerry Jackson

into high outcomes at Sam, have the of to built end what of new guidance and there the is we we try stores. range comps and a high do be end, is the that would what – the of the number

the for they year, at One biggest new store factors look be stores in both sales productive in it’s they the of is the about high do count. higher when the new would end, you year. comps the and But how when open

Sam Poser

the a all Kerry, then pleasure. been I retirement. your it’s Okay. you in And best wish lastly,

Kerry Jackson

been Sam, also kind I all Mitch’s I a that, It’s you. too three with working pleasure appreciate also. been you and appreciate of – Jim, it’s and a words

Operator

now to would to call I for the remarks. Worden like over Mark turn closing

Mark Worden

after wish joining forward May. a for quarter Thank discussing again you. XX call. I And us look you best fourth all today’s retirement in all to for you for Kerry results And again, with QX the years. wonderful Thank we

Operator

Thank and you for conclude call. you, Thank participation. today’s does ladies gentlemen. your This

You may disconnect. now

Shoe Carnival (SCVL) 22 Mar 232022 Q4 Earnings call transcript