SCVL - Earnings call transcript Q4 2024

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, and welcome to Shoe Carnival's Fourth Quarter 2023 Earnings Conference Call. Today's conference call is being recorded and is also being broadcast via webcast. Any reproduction or rebroadcast of any portion of this call is expressly prohibited.I would now like to introduce Mr. Steve Alexander with Shoe Carnival Investor Relations. Mr. ahead. go please Alexander,

Steve Alexander

good we for release issued of fourth and Earlier for us this quarter morning, our XXXX. morning. you, joining Thanks today. the Thank earnings press

factors. a a Investors section.Joining Merchandising Carl These on is need today If and remarks release, Worden, factors are and Scibetta, Patrick in number Officer; contain statements me of of company's Chief website of the our Chief that Executive today's Financial it such risk be Officer you from the Edwards, in cause available may involve to copy Mark materially risk on President call the forward-looking Carnival; could Officer.Management's statements. results those Chief actual different projected Shoe

I'll discussion non-GAAP on costs and call and the of to factors these to SEC reference or future company to in purchase discussed A is result shoes. call release forward-looking statements speak obligation measures. the with company's reflect hand in call The which or GAAP events merger, transaction accounting, adjusted earnings non-GAAP to in non-GAAP revisions any to will today's statements as Mark. risk or related today's of on included date. place that, of risk integration today's are Forward-looking to morning's to The the results the be referenced undue developments.Today's Rogan's the acquisition with press also contained conference today's over the reconciliation only should of of this to cautioned exclude release.And forward-looking filings included release. announce any considered press statements, Investors update in not factors reliance the any disclaims publicly or conjunction

Mark Worden

support our us start growth I'd period driving in XXXX. Steve, setting good holiday and fiscal in partners X,XXX their sales up and for by thanking sales for Thank everyone. like during growth December members and vendor the team you, to morning, today accelerated

team has me clear opportunity in of month. Brands are members our this the after abundantly customer acquisition to turning leader and is us spot with to sales profit team.Before This guidance, growth Wisconsin. from the commitment long-tenured expectations Rogan's welcome customers. month their up take Shoes new assortment XXXX team to on the announced last why all expansion sets state Rogan Their deep ahead. it's combination is start for and growth a compelling. results. X also me the market the Let acquisition, to target significant the for I'll highlighting QX and XXXX Welcome,

preliminary quarter We for with results consistent in $X.XXX at financials the mid-February. million the First, of sales announced and delivered end our in with year. the billion expectation were net high fourth the $XXX.X our

exceeded for growth with period holiday mid-single-digit expectations above strong delivery consecutive growth holiday gross December the Excluding our profit across sustaining our with posted the was We the quarter the and EPS related of the transaction for $X.XX fourth adjusted costs midrange incurred acquisition, totaled in $X.XX.Sales to period and year EPS XXth sales the balanced full totaled banners. adjusted quarter. in the both Rogan's during again, XX% expectations during

rolled Between they declining most customers wallet ready our our from our season marketing surrounded learnings perfect compelling and back-to-school we digital important customer during Our where early of growth captured combination marketing. when X which our during we season weeks new team message customers built wins campaign was The robust XXX from back-to-school a learnings choose found gifting grew out marketing influencer focused when both XXXX.We our banners incite the buying We of their net December in assortments members digital XX holiday our compelling The the slate of social, a or was an income were driven of to Since campaign, been has which $X.XX with approach, #X, margin holiday over quarter new successful refund income a to depth, go-to-market has holiday. challenging Perks and we diluted overall profit holiday on PRM promotional was I and quarter fiscal our of our advanced year category was expanded million of resonated consecutive update peak by: right on to the holiday the applied strategies season, fiscal the prior share. quarter the the events new XXXX.Fourth targeted a plans. customer net Shoe wanted growth with with the the to XX%. and and key spring of long-term in establishing for Gross share full our which #X, the campaign, with profit from the early on the shopping year.XXXX and Customers share diluted immediately.And shop compelling focused our shortly. representing term were brands, sales list. children's to that our $X.XX long approach for Carl's once provide growth a assortment the year, by holiday footwear central customers the tax year during social, purchase have compared strategic occasions driver delivered capture to fourth the footwear or grew team they transformation, core event-driven right within and membership, family $XX.X end to to margins again net above cautious over versus smart said, quarter our this rapidly buying during holiday, ready during industry were market driven per the margin are XXXX year. our and successfully $XX.X profit sales purchases. With points. Margin gross XX.X%, basis plans, XXth share per the year million at XXXX, 'XX will that grew million

$X.XX share for diluted fourth diluted XXXX. in was the Rogan's Excluding share transaction and the per costs fiscal income adjusted net per quarter, $X.XX

fresh delivered optimization first the providing expectations for for quarter this assortment inventory profit year branded in products a customers. our of plan. gross ahead executing while of sustaining of levels reduced continued inventory We margins improvement We and the plan our and robust

out XXX Our the a in stores, targets our efficiencies expectation is year end locations. Carl optimization a the to sales XX of store new XXX additional year. growth position, Station at to are of an we fiscal including be XX expected will of lay expect XXXX resulting inventory expect in XXXX. driving our increase to inventory moment.We're The continue of in high XX this Shoe an operate stores XXXX, part to XXX in in out this we growth to stores of will year. XXXX good By open to stores, our the Rogan and banner, acquired of all-time contributing coming that

our to modernization this to achieve required our M&A by XXXX. store have capital the plan XX% nears a program with strategic through the growth road We new additional starting for as modernize to approximately also stores program during map complete organic store objective in fleet Shoe arise. opportunities fleet, place continue additional decreases pursuing in and investment now stores profitable the XXX being and to Carnival targets year continue We in surpass growth The annual XXXX. completion.We modernized as

on end strong is securities with hand sheet the the million year. marketable at of cash balance over in and Our $XXX

million. million As cash and nearly increased compared cash and $XX year, flow to marketable over from the prior securities $XX operations increased

from we've cash funded rate we to carrying cash shareholder continue to to and place great debt, by the provided for in we long quarterly since quarter dividend second revenues old fund a of a our now enhancing by dividend company the family Illinois. Carnival's in the our XX our Rogan's, $XX XX%, stores have the With raised acquired and Rogan's delivering generated recent in term.In continue XX.X% generated cash the with strategic fund debt in share. shareholder with and flow acquisition XX-year million. We we confidence to operating work XXXX In with and our consecutive February, And the purchase in us and XXXX over Shoe flows, Minnesota March, puts Wisconsin, business. by current price per grown XXX% acquisition our no no position of this Down entirely the months, growth in business history XXXX.Given last XX dividend environment, first interest fiscal a opportunities investments footwear quarterly future further the of increase, demonstrating XX we in the returns growth the increased dividend. high

us brands and with has leadership growth Importantly, an base results, to our over as in this this we our of to full date. the complementary to customer expect press XX-month market meaningfully million. a increased XXXX into is balanced Wisconsin expectation initially We announced, previously and men, acquisition Station release Rogan's in and XXXX banner, that I'm had synergies the $X.X level planned and underway, footwear styles XXth and name the Shoe women pleased into progress is our plan presence Station XXX our provides well for banner.As Rogan's of expands with state. have to Minnesota, which children thousands our integrate Rogan's that carries XXXX. over increase announced was to the course of approximately relatively fiscal synergy XXXX. fiscal accretion level be Shoe of of we a and full in But will now million realize at we will immediately morning, our $X.X accretive and we've now

on Based to full early future business expect realize the the progress full process to integration for opportunities the of now now fiscal and XXXX. smooth of in XXXX to our date, year synergy Additionally, outlook. we strength the the Rogan's the amount growth.Moving

be This approximately a year, profit performance. versus our sustained trend to with down X% in as SG&A XXXX. than margin XXXX, margin is year approximate weeks to fiscal Carnival X% banner, gross sales X% for growth net driven to fiscal XXXX by fiscal growth $X.XX is balance to perspective, by the additional synergized adjusted of are representing provide primarily Carnival gross and merger on prior Patrick XXX higher XXXX. sales versus XXXX XX negative growth, outlook. Patrick XXXX expenses to $X.XX in trends. term will drive we Rogan's sales XXXX approximately The range increase net in in of up our is related near the expected percent flat X%. strategy strategically X to guidance. will a led tax be the Rogan's Shoe expected factors our be points be and prior begin to terms transformation approximately is continued be net store synergies is plan. of of details XXXX Comparable Station a Shoe part expected of as long-term expected expect part acquisition, our headwind basis approximately XX%, elaborate our an details fiscal our Rogan's reflecting prior strength significant EPS $X.XX. headwind a XXXX in year into basis the of year, sales points at approximately prior expected the translates performance approximately versus banner.Net SG&A moments.In early compared gross Rogan's the a We expenses profit banner.Gross a not noting primary XXXX From the our outlook led and prior the range growth as increase We purchase integration of on to in in $X.XX. sales the profit includes shortly.The EPS of to to an few rate in expectation are as to more of that for in versus But midpoint in year be representing late operating important that income the fiscal includes e-commerce $X.XX integrate weeks of customer for operating sales in representing Rogan's tax The that integration expect to trends are approximately margin Patrick of billion, line to expand is our XX year, understand growth begin to and strong provide significantly of Worth sales XX expected XXXX, points growth SG&A XXXX, a billion basis Approximately and growth in in expectation business. increased Shoe in to realizing improving XXXX, outlook. XXXX, impact increase XXXX is even accelerated accounting, do in into to year-to-date summary, the profit of expected X% margins, is XX prior are encouraging profit improved sustained are to XXXX due to significantly will top in versus XXXX. seeing fiscal costs acquisition. of base the versus the increase by and to of representing

go-to-market earlier, customers' when expected our as sales success campaign August and trends the our Carnival they're ] tax can and holiday in and are most we're season are Shoe and early learnings range to the halfway gross products, purchase compelling focused [ during win growth refund our mid-single-digit achieved We're I the encouraged growing and sandal through the ready we improving. and spring customers' discussed sales in with that QX, spring refund successful on are applying season quarter-to-date. campaign back-to-school assortment. low profit margin to fresh marketing performance and now response to from I'm marketing December share and digital sustained to product and e-commerce we and XXXX. approach I and season.Rogan's As business Using Station Shoe social achieving tax

of running single-digit offering a new growth digital-first response X Specifically, sales were fourth at line end over delivered accelerate spring customer expectations, seen the we to our results our the very high summary, preliminary the with banners.In results with our to campaign, seasonal net with month. across holiday past quarter consistent profitability sales growth expectations, during our December we've weeks our the strong announced by last our strong period. high in delivered We led and of our

efficiencies deal year cash the growth assortment position and generated cash flow, in capacity holiday future down, In completed drove inventory being with end, the for continue and good ahead period acquisition during in XXXX.Our target, the new additional consecutive expected the improvement with sheet a early we successfully delivered levels XXth February, and opportunities Rogan's balance generated flow increased Our by fund XXXX. we the on generate activated is cash inventory growth debt value the to solid we plan We again plans of strong in have business. optimization funded our to and with product no XXXX. with with in shareholder are

We the realizing of synergy XXXX have accretion XXXX, integration XXXX.Rogan's be expectation accelerated of the the of synergies accretive plan full results expected our realization expected and is to to are in the in the as the increased realized. million level $X.X increase fiscal now with expected in synergies will and significantly

with by in perspective the e-commerce for performance. long-term Station our the banner.Before strength like banner, profitability outlook to top significantly XXXX sales expectation our of Our demonstrates and line net growth led Shoe growth Shoe in sales with sustained and over on trends handing Carnival Rogan's, some performance to our our would improving growth it Carl, I close

sales increased have solid well XXXX, our modernization as promotional and in led profitability of We CRM XXXX, since strategies. our experienced an acquisition Since strategy, representing per as e-commerce investments earnings targeted net by growth have XX%, transformational growth share EPS and XX%. CAGR our

put have share over term competitive position beyond. grown in have us XXXX margin Over continue increase market the long same and sales and in to strong grow sales growing and profit profitability to gross XXX period, points XX%.Our has the basis expanded strategy a

clear: footwear the that Our well Carl it and to category's color family Carl? retailer, be the in now I believe to XXXX.And quarter on further our is advancing positioned are long-term to over provide we hand leading ambition I'll nation's toward and to performance. continue vision

Carl Scibetta

to previous be customer to purchases. begin quarters, Similar during quarter. of continues the our you, Thank cautious like families would by the their setting to backdrop I customer up Mark. the with

this December out more purchases saw this Our our their results performance highlight the the our and customer our event-driven the provide holiday season.I'll are strong such behavior season. first, during We on play customers footwear they more in in for But later. specifically holiday on during continue focus to value December periods like making quarter. season the as quarter performance category performance would details I our more and to for during QX holiday of

our learnings discussed, performance was our year. built the in Mark on we back-to-school As as performance strong from the successful earlier

included on items and which and list execution during assortment, XXXX.Our gift rolled athletics, replicating messaging. marketing their a holiday total and sales on for which new strategies holiday the refund strategies for digits. comp low we wanted holiday in-store performed we customers single a total by only these Our and December further led that and digit. value our teens. tax strategy our down season, well, successfully compelling key children's providing period that grew holiday build for are back-to-school spring, the we will outstanding. even exceptional All digits, digital Continuing holiday early was increased low Easter with were single included and up influencer X-week campaign, out social, We season also Nonathletic mid-single low products

was men's period holiday and the down single up total digits. during slightly low total category Our women's flat was to

Our marketing strategies drove demand.

and on to activity remain January. modernize performance. to staffed be XX% intensity fully the our merchandise gross high shop backdrop to holiday.Now continue all the assortment moving transformation promotional way merchandise Our targeted profit customers e-commerce Competitive our committed provided XXth for above during for seasonal and the right consecutive We margin to purchase easy aggressive profit and with to strategies sustained stores platforms quarter. the delivered quarter gross the delivering through to margin profit continues CRM

points activity merchandise. quarter versus on margin due merchandise XXX increased for promotional seasonal the prior year, by Our decreased to basis primarily

year expanded to years long-term XXXX, a X to transformation long-term and profit And in inventory on promotional on was basis our dollar our we merchandise down capabilities end XX% of leverage analytics the further prior a and has we our ahead the lowered inform basis, unit optimize at target. points XXX total was to prior year. year. CRM our year success quarter, versus by perspective, demonstrating the than For strategy inventory the quarter, advanced by of levels, a basis our ago, to XX% and approximately ability finished continued significantly in of QX fourth the compared strategies.During the our Inventory approximately margin the

we flow to inventory product to ensure with our stores offerings our that stocked is content Our the inventory want. manage customers clean, continue and are

to in our further optimize expect continue inventory inventory. strategy generate and XXXX, to we execute we As efficiencies additional our

disruptions the December for Excluding million to while the impact to down the sales $XX lower fiscal year Total categories which assortment XXXX January. X.X%, period year-end for holiday sales and moving QX of event-driven reflected the than weather shopping Rogan's, traffic to be expect customers.Now were XXXX and product in to with comp lower approximately maintaining or end, X% prior quarter. due we fiscal our inventory freshest

As strong mid-single performance with needs low very The I boots. athletics discussed was adults. in casual, performance during down December In as teens performance quarter children's sales down were basketball high by was [ digit To ]. were boots adult slip-on nonathletic by to children's demonstrates men's grew performance mid-teens. athletics slower digits. low court in mid-single low canvas nonathletic season, sales offset flat The for Comp athletic summarize, was primarily were high earlier, was athletics by offset teens, our purchase.In holiday down mid-teens. and as quarter, well sales the growing were successful and December Dress for business ability when down partially down sales down led our the were ready down they in the in was casuals better low in dress were growth boot and double performance low to holiday in period, double meet down decline strong comp [ comp digit, children's perspective nonathletic nonathletic strong down adult the athletics categories and with led low are with performance our was in mid-teens comp down December, casuals well Men's and the single in growth by digits. down was the and performed of down sales November softness singles footwear in quarter. high Sandals women's singles women's and January.Fourth teens Total both digit children's and holiday and with sport double ]. in customers' digits.

to to focus thoughts as During softened purchasing event-driven consumers XXXX. line their nonevent period, towards price-conscious top continue footwear periods.Turning on performance now

in on high going compared Our good position boot a the down basis year inventory is into a unit year. to XXs prior

a effectively environment. inventory to boot we optimizing quarter, the As In of our and a vendor discussed be it of and manage our relationships, with position the within in quarter, best-in-class delivered flexible target. continued inventory are and good backdrop we challenging with demand our ahead last weather

the with Station Upper customer to seeing that growth I to is execute Our encouraging in we tax improvement financials. new banner our opportunities inventory building successful last our the the well.We're CRM excited the in and flow about content and into will The strategies, successfully optimization about we spring.And in we much targeted strategies of We that, mix transformation customers products further Shoe over seasonal and coming pursuing Patrick stores during are a is to acquisition our customer base. of and we than from learnings Rogan's have our our engaging and refund are Station December our prior to excited very is the fresh both year, products complementary call XXXX. a with better holiday good marketing position, are and to done are in DTF to XXXX. we the as the performing Rogan's with base the with early athletics our grow performance review the our look And the business and with performances, remain further with will also our and season committed inventory in newness years. to continue engage Midwest of Patrick? turn for very and We as profit on that are plan over couple early Shoe forward

Patrick Edwards

Thanks, Carl.

quarter On with increase Shoe in of year. and a impact December of at for Carnival This sales, QX total the low by down the X.X% was our a expectations, store week million. versus of new fourth X.X% banner a the impacts and a The at line weeks expectations. were sales extra for and our net strong were in holiday were banner, Net line, geographies soft quarter. during the the the total sales to mid-single-digit basis, Starting with which driven from led the teen and trends Station our disruption, in week e-commerce Moving stores results. couple multiple quarter store the to peak XXrd growth, in in QX resulting banner company-wide and prior a in January. end our prior our comparable quarter.On lower the at financial down in our strength new in weather high sales sales basis, top the decline period versus of Shoe on excludes holiday of came performance primarily sales December benefit sales by the prior the on came year the in store were for period closures $XXX.X across for

our lower lower points, merchandise distribution stores, and merchandise quarter, the due deleveraged freight by offset primarily on BD&O share. costs fourth higher rent in quarter On and $X.X occupancy for more decline distribution on gross lower margins down included quarter, QX and with gross was QX basis. costs, the was or a expense quarter million, our income profit store net were the million our growth, Mark were was quarter. down Rogan's costs strong XXth to in million XXXX. by $X.XXX to associated margin costs. basis, down results and a XXXX discussed, on operating peak a acquisition the that the transaction selling In exceeded SG&A sales gross $XX.X a per As marking X.X% with $X.XX versus of Carl consecutive comparable QX promotions were million On mid-single-digit during adjusted X.X% sales.SG&A related athletics.QX for related year in XXXX basis comparable on excluding in diluted per reflecting for was decreasing has led $XX.X the approximately margin partially to increased non-GAAP Rogan's XXXX increased or QX $XXX,XXX expenses points, share.Net profit income otherwise the and year $XX.X Buying Compared profit during XXX full This XX.X%, basis fourth seasonal basis, sales diluted December with points the quarter. representing decrease XXX prior was GAAP margin XXX quarter versus XX%. $X.XX holiday period net billion. basis was transaction the

per income rate gross by EPS have in per XX% further XXXX, sales XXXX.To fiscal a we growth share. dividend dividend that For of since $XX.X on or expansion of basis full X margin CAGR, of ending $X.XX XXX share, net delivered guidance. we by per perspective, and a raised year totaled or worth led support our the a years value a our points of XX% XX.X% the diluted to profit on $X.XX basis per income share basis Taking non-GAAP March, GAAP and $XX with representing reemphasizing annualized totaled net $X.XX net shareholder last $X.XXX XXXX, share, million over at long-term midpoint diluted million it's an increased

We have consecutive increased quarters, we have consecutive now provided this that a dividend year and dividend. XX is the for XXth

we year is and repurchase equivalents for we growth XXXX, improving expected banner. $X.XX cash Mark shares increased be the end and of Rogan's During current in Rogan's.As share by down total XXXX. equivalents expected of from due them even realized Carnival for increased realizing capture our with performance. integration XXXX. approximately profit our versus be year trends services, a a targeted fiscal sales approximately basis and driven and higher for our such margin Station X% outlook on our up on XXXX full to and as by banner, the in XXXX, expected opportunities synergies to of expected recent to expect have performance.SG&A long-term be insurance, sustained margin integration Shoe growth promotional with are Rogan's XXXX.Now sales expectation expect back-office We e-commerce purchase in acquisition, and Shoe primarily related and led representing of gross fiscal as now due operating net which full over approximately million primarily our as is the chain, meaningful cost Cash year, reflecting Comparable costs higher not Shoe versus of acquisition the scale SG&A increase increase flow of XX are $XX gross related million expected technology encouraged part quarter, areas, $XXX growth, $X.X well to profit expenses builds such percent begin points had under those be be to net to are growth margin At points to XXXX of as to and approximate demonstrates outlook, is Approximately that full versus see efficiencies.We million to our representing over to synergies areas the are by led a at in sustain XXXX late XX synergies the cash in balance cash, we in sales of didn't prior as our The strategies be integration sales the by is in cash have transformation increased basis banner.Net leveraging X% fiscal providers capabilities securities do billion, sales continued the as the increased to discussed, to improving our synergized repurchase available profit are fiscal in million. of acquisition, to $X.XX to sales, XXXX, fiscal accounting, buying duplicative from program. e-commerce date of range CRM $XX sales process expected marketable million strategy, to moving operations operations million $X.X of and our Gross the store the our XXXX XXXX to advanced any million our $XX XXXX. and that trend combined expected of to billion from remaining that $X.X Carnival strength an range than to X%. Rogan's and e-commerce fiscal supply until in profit transaction to any expected X% versus expectation and

XXXX in it than $X XXXX. range the expect fiscal we will fiscal in range and $XX million equity to After related our expect XXXX is expected generate benefits to in $XX accretive for to prior of Shoe fiscal continuing is in share, integration $X.XX recur tax to $XX to $X.XX GAAP $X.XX, the XX EPS, of tax deferred sales, in by the XXXX approximately full approximately integration of will weeks XXXX, our XXXX net last the impacts acquisition, end the to not outlook, customer to of the be $XX approximately of year midpoint net in increase year range and XXXX, now fiscal EPS in to million and points operating we at million impact costs. merchandise in be XXXX, XX%, inventory Non-GAAP expect of trends at fleet be state XXXX improvement the versus modernization event-driven to line optimization the from year. of into an completion. are $X.XX headwind, inventory fiscal expected approximately trends while to shopping Rogan's end our X% behaviors sandal than and levels EPS a negative results put This the of capital synergies are expected costs reflects excluding which a that Rogan's $X.XX Rogan's standard of representing generate the part a dynamic $X.XX.As better to our million to those previously expected purchase XXX the be income inclusive assortment and expected in share of our lower encouraging footwear. primarily impact as $XX in the benefit which $XX of year-end, of customers.Total of the as accounting, higher to in and As is plan, expectation at XXXX, fiscal a negative $X.XX. approximately we per consideration rate is for million excludes which realized, is sales, the and expected purchase or prior we essential fiscal purchasing expectation Rogan's settled net XXXX.For lower maintaining of XXXX.Our with be have transaction awards transaction banner fiscal selling In are taken acquisition Carnival sales approximately million inventory, products million lower to accounting, fiscal such nears end representing purchase related fiscal Current of tax of fiscal be rate expenditures basis announced, our Rogan's approximately XXXX versus Shoe XXXX in and Carnival to a inventory and from an of program are best a as

a week be comparison net campaign. of before not fourth back-to-school.Also, X% quarter gain consumer to sales will date Easter our and in XXXX, to Fiscal in QX XXrd shift, the We expected and after of in by versus growth will results about the sales XXXX.Our to $XX insights QX million by into growth will as quarters sales mid-single result our and spring would the and quarter XXXX. the to in QX recur is to to approximately shift considerations decline This versus meaningful to fiscal from tax sales XXXX. XXXX approximately of the in week impacting marketing fiscal highest for refund digit quarter expected prior in this result outlook growth.With will in year shift. the I XXrd that impact driven weeks included prior be XXXX the will year like line the first in achieved and QX quarter discussed, low net full out seasonal in regard and point prior in XXXX will of total be couple Despite and The growth fiscal net million. sales second year phasing week XXXX additional will third as key sentiment in nonpeak our QX year. in included XXXX going prior a shift calendar the And the back-to-school XXXX, of each $XX shift volume our with year of combined QX be have the X% we versus XXXX, Mark a

modernized product profit margin, with a for low XXXX first consistent sustain our capturing tax we and stores current to in we XXXX, XXXX outlook, mid-single-digit sales Our expect demand. of the currently higher higher driving annual that assortment to gross year. quarter operating range. rate And compared is to to Overall, growth expenses last in remain and and campaign, expect QX

therefore in growth, strong which the importantly, fund us Our is M&A our compared on expected deliver cash earned top steady, line result return. sheet long-term execute growth positions to first in is is to internal the per ability to continued is approximately quarter $X.XX balance flow of opportunities most first and quarter shareholder the flat XXXX.Our EPS that share and to

record concludes June will as been We XXXX.This XXXX, also shareholder announced on be That our the today that of financial Annual date meeting Shareholders' review. Meeting. set XX, April for XX, has our held

Now the call we up for open like to would Operator? questions.

Operator

from with [Operator Kummetz Instructions] Your first line the Mitch question of Seaport Research. comes

Mitchel Kummetz

Yes. And is My comp the quarter-to-date? comp first guide? the the And to quarter. But and guidance. apples embedded your with acquisition you I commentary what question on sales appreciate around quarter-to-date has is can to do then is the XQ. sales QX Rogan's, first apples, sales XQ what all in also given say of

to coming? weather a bit then there's of how going little about kind bit And cold follow-up. that do the a a maybe the talked that see and you little forward weather have impact more extent You I of

Mark Worden

Mark. it's Mitch,

very the the me for [ We for encouraged. spring campaign Well, range. started and in and weeks ago, and weeks the very achieved we but quickly. it's X not [ sales turns holiday So the and from working is for disaggregating high accelerating ] QX the let X for single-digit comps company with in weather And accelerated And X Station. have sales spring look tax specifically, we're the growth start this right BTS are in we're well. comment. into growth learnings We're ] growing as it's favorable single-digit last your season.We're Shoe campaign you with range activating miss broad a that for March growth low very started, can the since the sandal I that All pleased March. strong at point, as give in banners weeks even acceleration campaign faster

And with, in Shoe our in growing accelerating for hoped Rogan's of everyone results guidance. wants campaign. had e-commerce strong Our accelerating we're what March, hear for the seeing also Carnival is is Shoe pleased is like we where month most is our the think expected we had rapidly. Carnival and I guidance. to delivering, we're

the Midwest, versus snowstorm favorably a if last this into we we get commentary. se Upper responding helps is season.Regards fast, So mean while weather, a per level, I business season April easier challenging the predict in to banner not we're in we're confident going spring a growth as are hope but break March. frame on that of to disappointing comps out part and give campaign we very March, crazy I can't comps get year. the our time in in Every

to be March expect We strong.

from if sales As month singles of campaign high at said, look in accelerated continue I to just we of weeks March. I and X it's the accelerate there the for the the

all not a early [ in and feel period and topic We're a broad yet our event a us I'll from down get confident think plus we So for given is March.What will comp an X now. important we very going season as the past to range the holiday I address spring back-to-school. clear consumer -- cautious has in ]. it What if still we be to and get the Easter until X to right

have what after a is and Shoe consumer range we as there, Carnival And look -- Carnival. banner we like. the until see So the range really that on particularly event, will wide X-point that in Shoe how range the this largely that's responds

Mitchel Kummetz

a Could that made then around. talk that I don't about maybe then be athletic think a thinking some lapping Carl. back And in you It an performance follow-up, you how don't to know know assortment? how a the category if or opportunity this the bit still like half, that's the if you're versus that weather as little boots cautious you sandals to poor I that year. start pretty the again. is see Mark. are improvement nice to want about And speak comment good the I in you're sounds you for of seeing product pipeline maybe business. in a helpful, That's XXXX? my much off

Carl Scibetta

categories fresh that of pleased now a new in we're but early, year stores ago where expected the or that's ago. on cautious than athletic need little a that supply seeing are watching have products and early definitely, up we with some we ago. perspective not to in of still early a and in fact, in. our on with categories sales product it or most into flow chain It on weather emerged some a issues cleaned all area, categories was over year have consumer on a has a feel is there. of product cases, time, a goods, drive and we're in flow sandal helped coming seeing freshness quite freshness better nicely.Regarding in we And world, boots, Mitch, receiving performance my -- that out standpoint, choppier We're as year several was are well is will coming sandal flowing new some We and the incremental retro out products boots. there, enough nice certainly, we're we're what to.From nice see boot much

have need in if if our major not past. the ability partner to make we have But performance. sure seeing if that needed. supply -- a approach to also with that boot to taking So then there's there's we We'll we're we're cautious also move to vendors we an like

way play play we in the boots year. we'll next So year this

Operator

the next Chartier comes with & Crespi Hardt. question Monness, of line Jim Our from

James Chartier

the consumer struggle Shoe last year, Carnival higher kind believe, income improvement from [ [indiscernible] can income kind decide a I banner? versus lower lower ] the of whether There's consumer delayed the for of given in income you, most quarter you of trends,

Mark Worden

it's Mark. Jim,

we it's First providing people with urban influencer the fresh quickly and season for the surrounding very we working still our question once It's demographics. learning May be post and have April did to can more what income, that get consumer. big it event when look It's into of absolutely social, new lower-income high the And working color or to we're going going suburban like and events, during again, QX are past we across for resonating is get that's like banners.The May, things shopping as and we But brands provide our of into strong what low and reporting improvement seeing we're spring, and the resonating marketing value approach get share for event Carl's of cautious look the going X all for fantastic banners and caution to it's range the right season, we're everything is nonevent plans to growth and income waiting about banners now, digital across good are across -- across with winning we're across feeling our and big are really have season again during learn encouraging. and campaign. really we -- new guidance, slate the great spring still. to we're

James Chartier

and And then within so based there seen ], the more on you've back-to-school is marketing far? opportunity given do what to within seeing we're the response for [ marketing, holiday

Mark Worden

be good We're the business and We these just holiday upcoming periods, back-to-school. replicate is very planning growth, this is in activate holiday event that to to work, goal. that learning not in our plans our can and is whole grow a an in if intend plan still and be we because high had activated do testing on we'll then this again, were absolutely. able growth had at Absolutely. but to kids we we back-to-school.So on replicated learn seasons. confidence, if We late to ]. that ambition We increase progress. this XXXX. update provide work Yes, a more year. aggressively. does more good continues business and grow working And invest back-to-school what minutes our in season to And have May and did kids if nonevent approach for we spoke for approach so year work, We'll for and [ can holiday, will it works we We

James Chartier

still reducing feel on on categories year. then like too you which talked inventory levels, inventory you are categories about this specific high Any reduced And further the focused inventory a is little ] or where Great. [ you levels?

Carl Scibetta

can -- that -- products to Well, we came have company, I'm have is than but some to the that the areas we in boots, cleaner at not of year pleased even still Jim, consistent business particular It's the down on make are quite seasonal high the we efficiencies pretty there's We levels level. in that we improvements to And all where continue all come inventory really, We're it's any we in down of down. board, out the Carl. down areas then has in across think this we inventory end XX%. anticipate We'll drive think get opportunity was the we ending there, season to an sure drive past. that extremely continue about sorry, we looking at inventory and area business. across inventories

Operator

the from Trading. of Poser with line comes Next Williams Sam question

Samuel Poser

then how what you Shoe these store all your I'm how you're [ if the just Station what me Carnival and drive in the fourth some very -- more doing could especially if traffic quarter, ]. need color -- on like you and the now to you is are saw at Carnival decent Shoe you're being wondering sort driven sales specifically? or store sounds traffic it give to people Because that of Shoe what seeing versus

Patrick Edwards

comparable down were to store respect match the and X.X%. fourth With not for Patrick. traffic quarter, uncommon it's [ our sales, it's Sam, our ] pattern which

respect quarter. down going our to was surprising to Our With that similarly, forward in not X% mid-single that range digits. the traffic sales up of overall throughout now, are low fourth same

sort in also trending of same that Our traffic way. is

Samuel Poser

kind Okay. in strong it then Can ] question you here. that happy -- talked you athletic like in I've Carl, you period. talk [ that, And being And still a it. I talked athletic got about you're with And Carl, about double guess, sounds look about think about key deeper narrowing how can of working about then -- mix talk the on are at things about going you you maybe in of items. sort what you inventory, talk -- you separately, narrowing as athletic? like

us sort look And some as that? move versus idea always XXXX. You've XXXX how done give that might we of through

Carl Scibetta

Sure, Sam.

quarter ] kinds whole of performance respond our soccer about our are category and now to edit starting side, taking the we're and jogger On basketball our continue running out.From retro business the court, into those definitely categories business really freshness But to the freshness customers consumer Station athletic our emerging business today, with [ fourth to that of very new strong. to beginning throughout we be items. see right our our customer off newness with very, products, old today, and and newness standpoint athletic until inventory, with have categories. in with will Shoe the and continue jump of sort a new key And come to is assortments, business most new sure drive

have right we of well. That's now, there's drive in continue feel to flow coming a opportunity We very to items. we do that product and great what key reliable very,

of So we're somewhat back we feel normal. to a

to back a are We cycle. normal

I product cycle, driving items to important brands. back a and vendors will normal what exciting we Our move an into from believe, are and time key standpoint, a certainly

Samuel Poser

in to The and weeks shift. it -- beginning appears you but think, in big guess, I the the what said of of and dollar this end. week affect how But QX, shift sort And of then lose last lose, you a to situation. because the of gain again, about out small how with through But QX. the thing QX, year. in and give way a QX the quarter, the million timing sort probably QX you $XX to -- QX, this one was quarter each think $XX that How does comparing, just QX, to like at million, that improve give you me have through can us walk you you expect that the comps about back and week by to you of each us shifting -- this just at QX, quarter? you I QX works Can the the

Patrick Edwards

Sam, this is Patrick.

moves is between to in weak, what that what net then moves that week, large of lose moves And that's we have net shifting You're not QX, out. meaningful QX elements QX. have periods it the but on growth amount the QX rate out to correct. sales we in X% into week this we're the the In will Again, those million. the time moves out million the for that we impacts compared gross a over to year. That's and XXXX, $XX The be of would of and focused shifts. $XX million $XX the that expect be are growth growth between overall meaningful that to that of and we rate QX, losing X because that in to those QX both quarterly level of our X% lower that

Samuel Poser

week that, what us just I'm is $XX you're But -- much for or and then so to... losing netting quarter? saying $XX help understand. then million And whatever that a it you're a is. getting It a that's smaller in the plus ] really and [ each but than $X I losing gaining like able Can you Right. week you're give and million would gaining being bigger you're minus million, QX, you're than that's that.

Patrick Edwards

Sure.

QX will So QX will down the a is QX million. on is impact $XX plus I'll on The $XX not million. be then impact million, The try it be again roughly and way. impact And $XX QX minus on meaningful. different in

Operator

Seaport Research. of line with the from comes Kummetz Mitch question Another

Mitchel Kummetz

ask maybe EBIT. on bit want last the a little I question I differently. When Sam's to focus

million with of that XXXX, What referencing, EBIT $XX impact XQ So this XQ? Like that sales. does the through EBIT? on how then shifting about to Patrick, $XX starting XQ shift in was you're in the week mentioned how flow EBIT? from much And that is you sort million -- was XXrd to XQ,

Patrick Edwards

Mitch, great question. it's a

operating view those is -- $XX is one roughly of each Our dollars me, million sales XX% that, about point of about of income. on or excuse speaking, is generally

bigger $X.X million, that. that to somewhere sorry, on before income, than probably probably number. something $XX -- on you income -- get down that half you be So million-ish, It's like get operating it's going to operating around before

without somewhere half So is other million the effects. of principally any around that $XX

Mitchel Kummetz

said said something million I about and is $X Because then didn't follow about half didn't... XX% that. you I I guess quite you

Patrick Edwards

Sorry.

Mitch. Sorry,

Let down an EBIT me number. to get your question It's again.

it's I said to on number. the So operating of to revenues EBIT, X% it's XX% XX%. down from pulling before, about X% we're Like Whenever to -- down income. to

Mitchel Kummetz

especially will as kind year-over-year. BD&O? maybe of then of of on out margin how that that mentioned the between flattish you're and does margin I'm about well? sort sort those level gross that Is And of you given sort are that break probably be comp XXXX, it? thinking How assuming flattish merch Okay.

Patrick Edwards

into pull have But a margin, bit. in Mitch, that's and back of XX% see little another acquisition start above respect margins a will move is the our distribution And strong into profit and with we the overall capabilities to and with our more product running margins need into overall margin year, those year.I supply be to would clarity that chain. a say see stores and bit gross still as continuing our margins do see little and the good our then the profit our can question. ability little to provide process with a give a drives of -- Mark margin or Rogan's color we margin. margin product and gross our some them will stick what overall, keeping current entire have merchandise respect impact. that, to bit we bit But this product and of even we thing for We not that merchandise year. current and on the whether still associated those I

some flat. as will stores we of hopefully sales leverage little also then be flat, over And but the improving be concept a is bit growth. some those So to BD&O expected

Mitchel Kummetz

then me. And last one for Okay. one

standpoint. from new the you're XXXX, like it from a standpoint, expecting more on doesn't -- to to seem sound not a It with SG&A, of spend the campaign. sounds it sounds guys like really a percentage for be you're seeing success lot like marketing Just you

Could You're flowing maybe just of when and of just dollars. of of that? you're expecting in to spend kind those sort elaborate how marketing on sort terms you better

Mark Worden

it This Mark. tested television, of just and if great again, investments like that tactics higher right decide in pursuant is think Mitch. during vehicles mentioned.If then digital, for out we traffic I Spot during like But return more shift on far it's working like into We print events this vehicles shape. mediums targeted giving work that holiday and significantly those us learned the efficient, traditional to and spend. a to a and marketing in see as significant funding SG&A effective to great increase we we quarters frankly really take strong us worked like and that and weren't year again last talk loaded if having about effectively do advertising in good getting profitable like and BTS It return year, delivering traditional and more for on investment shifting ad now, we'll social, shared, we're I our more going a reduced nonpeak got like influencer. a seasons, we've

Operator

time, this there other no questions. are At

will closing remarks. hand over I the for to management back So call

Steve Alexander

is Thanks around Steve. again joining I'm day. This for today's all call.

you'd if to to reach like you Thank much. please [ So very talk, me. out ]

Operator

and Ladies gentlemen, concludes today's call. this conference

now may disconnect. You

Shoe Carnival (SCVL) 21 Mar 242024 Q4 Earnings call transcript