Shoe Carnival slides as profit falls on costs, inflation impact

Shoe Station

18/05/2022 17:55

** Shares in footwear chain  SCVL.O  fall as much as 18.7%
to $25.80, a more than one-year low
    ** SCVL says net income decreased 38% to $26.9 million on
higher distribution costs due to the impact of inflation on
transportation and fuel  urn:newsml:reuters.com:*:nBw9VTk1Ba
    ** Shares are last down nearly 15% and on course for biggest
decline in more than two years
    ** A decline in discretionary funds and high inflation
didn't slow down traffic, but it slowed down the ability of
customers to make multiple purchases for the more expensive
products - CEO Mark Worden during an earnings call
    ** Target and Walmart executives have also flagged a hit to
sales from high inflation  urn:newsml:reuters.com:*:nL3N2X927U  urn:newsml:reuters.com:*:nL3N2XA1XU
    ** However, SCVL raises its earnings per share forecast to
between $3.95 and $4.15 from $3.80-$4.10
    ** Shares are down nearly 31% this year

 (Reporting by Praveen Paramasivam)
 ((Praveen.Paramasivam@thomsonreuters.com;))