Buoyed by record earnings in 2010, Evansville-based Shoe Carnival says it’s poised to enter the “e-tail” arena later this year.
The retailer released its fourth quarter and year-end 2010 financial results Thursday.
Net earnings during the 2010 fiscal year were $26.8 million ($2.05 per diluted share), an increase of 77 percent over its 2009 net earnings of $15.2 million ($1.20 per diluted share). The company’s 2010 fiscal year ended Jan. 29.
Net sales for the year were $739.2 million, up 8.3 percent from the previous year.
“We’re extremely pleased with the consistent strength of our financial performance in 2010,” Shoe Carnival President and Chief Executive Officer Mark Lemond told investors during a conference call.
Currently, Shoe Carnival sells merchandise only through its stores. At the end of 2010, the retailer had 314 stores in the Midwest, South and Southeast.
Later this year, Shoe Carnival will begin selling through its website (shoecarnival.com) as well.
“We’re extremely excited about the launch of Shoe Carnival’s e-commerce platform,” Lemond said.
The process of establishing an online sales presence, Lemond said, will cost $1.4 million in capital expenditures, mostly software-related.
Cliff Sifford, executive vice president and general merchandise manager, said Shoe Carnival has already started its efforts to drive customers to its website through online coupons that can be printed and redeemed in-store.
“We already have a loyal fan base visiting our site regularly,” Sifford said.
The online shopping experience will aim to recreate the “fun and exciting environment” found in Shoe Carnival’s stores, he said.
Other details from Shoe Carnival’s financial release:
n Net sales in the fourth quarter rose 5.3 percent, to $179.9 million, as compared to the same period in 2009. Comparable store sales rose 4.6 percent.
n Net fourth-quarter earnings were $4.4 million (33 cents per diluted share), up 70 percent from a year earlier.
n The company’s selling, general and administrative expenses rose 5.6 percent in the fourth quarter, to $47.0 million.
The company’s Chief Financial Officer, Kerry Jackson, said this was mostly due to higher advertising and store operating costs, plus an increase in incentive and equity compensation.
These increases were somewhat offset, he said, by a drop in health care costs. Selling, general and administrative expenses rose 6.3 percent for the year, to $179.2 million.
n At the close of the fiscal year, the company’s cash and cash equivalents totaled $60.2 million, up from $44.2 million at the beginning of the year.
Shares of Shoe Carnival closed at $25.86 Thursday on the Nasdaq market, up 46 cents.
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