Shoe Carnival, Inc. (NASDAQ:SCVL) Q4 2022 Earnings Call Transcript

Kerry Jackson: Mitch, also on €“ so when you look at the comps, we see the comps flowing that way. We see the better opportunity being in Q2 and early into Q3. There was also the wildcards is the opening of the new stores. So, to get to the high end of the guidance, if we see the economy is in good shape, we are negotiating a lot of deals that would be later this year in the second half. And if we felt the economy wasn’t set right, we could push those into early €˜24 also. So, it’s dependent upon our view of the economy and how many new stores we could open.

Mitch Kummetz: Okay. And then Mark, you mentioned that Shoe Station was roughly $100 million in €˜22. What kind of sales projection is embedded in the €˜23 guide for Shoe Station?

Mark Worden: Strong growth, we have a double-digit growth plan for Shoe Station. And I think two biggest drivers we are most excited about are new store openings plus in the guidance are largely Shoe Station as well as shoestation.com is now up and running and capturing growth. So, we got it in the low-double digit to put a range on that, Mitch.

Mitch Kummetz: Okay. And then Carl, just a couple of quick merchandising questions. So, I think you said for Q4, boots were weak. I am wondering if that has continued into early Q1, particularly February. I believe that February was a pretty strong month for boots a year ago.

Carl Scibetta: You are correct. The boot trend that we saw in the fourth quarter did continue into the early part of the spring season as customers were looking for newness and freshness. So, that boot issue did continue. Frankly, we are waiting for fresh new boots for next year.

Mitch Kummetz: Okay. And then sandals, I don’t think it’s terribly important for you in Q1. I think it’s a lot more important for you in Q2. But I am guessing sandals probably not off to a very good start in March. But €“ and so I am curious if that’s the case. And then remind me, I feel like a year ago, April was not the best month weather-wise. I am wondering if that’s an easy compare on the sandal business for April and then maybe the balance of the quarter, I guess that is the balance of the quarter, so?

Carl Scibetta: Sure. Sandals €“ yes, sandals have €“ a good majority of our stores are in the Midwest and in the North. And you have seen how that weather is in those areas. So, that directly affects sandal business. In some of the areas where we have seen very few areas of decent weather, sandals seem to be performing. Last year, absolutely, it came late, sandal business really did kick into the very end of April and through the May timeframe in the second quarter. And based on weather, that certainly could happen again this year.

Mitch Kummetz: Okay. And then last thing, just housekeeping. I know Kerry, Sam asked you about the 53rd week’s impact on sales. Is there any impact on earnings for the year?

Kerry Jackson: It’s immaterial. There’s a slight benefit to EPS, but it’s not material to the overall guidance.

Mitch Kummetz: Okay. Alright. Thanks again.

Operator: Our final question comes from the line of Sam Poser from Williams Trading. Please proceed.

Sam Poser: Well, I guess the question is you have baked €“ you have said 10 to 20 new stores, and I wonder how many €“ like what’s the €“ is 15 new stores baked into the guidance? Is 10 on the range, I mean €“ or is the range of the guidance reflective of the new store count?