Shoe Carnival profit edges up in Q2

Evansville, Ind. Value-priced footwear retailer Shoe Carnival said Thursday that net earnings for the second quarter ended Aug. 1 totaled $982,000, compared with net earnings of $977,000 in the year-ago period.

According to the retailer, tightened inventory controls drove the improved results.

Sales for the second quarter were $152.8 million, down from $158.5 million for the prior-year quarter. Comp-store sales declined 6.4%.

Mark Lemond, CEO and president said, "While consumer spending and the overall economic environment remained challenging in the second quarter, we were able to improve our year-over-year gross and operating margins and, therefore, record earnings per share equal to last year.”

Looking ahead, Lemond said, “While there is considerable uncertainty regarding consumer discretionary spending after back-to-school, we remain optimistic about the sales trends for the remainder of the third quarter.”

He said the company expects to record positive comp-store sales for the third quarter.

Shoe Carnival said it expects to open 16 new stores in fiscal 2009 and close eight stores.