Posted on Sunday, 28th March 2010 by Laura Hernandez
Toning shoes helped Shoe Carnival firm up its fourth quarter sales, the Evansville-based company said Thursday.
Net fourth-quarter sales were $170.8 million, up 8.8 percent from the same period a year prior.
In a conference call with analysts, Executive Vice President and General Merchandise Manager Cliff Sifford said boots and toning shoes were especially strong sellers.
Toning shoes have curved or contoured soles designed to create instability when a person wears them. Shoemakers claim the design of the footwear helps tone wearers’ muscles.
Toning shoes have been available in all Shoe Carnival stores since October, Sifford said, and they have proven popular with customers.
“The results have been outstanding,” he said.
But Shoe Carnival would have seen sales growth even without toning shoes, Sifford said, and numerous other categories — especially men’s and women’s boots — were also strong sellers.
“Our increases are being driven by every department,” he said.
Shoe Carnival’s net profit during the fourth quarter was $2.6 million, or 20 cents per share, as compared to a net loss of $3 million (24 cents per share) during the fourth quarter of 2008.
For the entire year Shoe Carnival’s made a profit of $15.2 million, or $1.20 per share, as compared to a profit of $5.3 million (43 cents per share) in 2008.
Net sales in 2009 stood at $682.4 million, a 5.4 percent increase over 2008.
Shoe Carnival’s President and Chief Executive Officer, Mark Lemond, said the company expects sales to increase again during the first quarter, with net sales between $181 and $183 million.
“We are very encouraged,” Lemond said.
At the end of 2009, Shoe Carnival operated 311 stores in the Midwest, South and Southeast. The company opened 16 new stores last year and closed nine others.
This year the company expects to open 10 to 15 stores and close 10 to 13 others.
The company’s 2009 financial performance earned its top executives substantial bonuses.
In a notice filed Thursday with the federal Securities and Exchange Commission, the company said its board of directors has approved discretionary bonuses for the company’s executive officers.
The company awarded Lemond a bonus of approximately 60 percent of his 2009 base salary of $703,500. Kerry Jackson, executive vice president, chief financial officer and treasurer, received a bonus worth 48 percent of his base 2009 salary of $400,000. Sifford received a bonus representing 45 percent of his 2009 base salary of $425,000. Timothy T. Baker, executive vice president of store operations, received a bonus of 39 percent of his 2009 base salary of $425,000.
Shares of Shoe Carnival ended trading at $23.18 Friday, down $0.16 from the previous day’s close.
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