Shoe Carnival stock up 7% after company reports online sales jump

Shoe Carnival stock up 7% after company reports online sales jump

Shares of Shoe Carnival Inc.
SCVL,
+3.55%

jumped 7% on Monday after the retailer said its online sales have risen more than 400% so far in the company’s fiscal second quarter. Shoe Carnival also warned that margins likely will suffer due to shipping and other costs. As of Monday, the company has re-opened all but one of its 390 stores across the U.S., it said. Same-store sales are up 28.1% compared with the prior year, including a rise around 470% for e-commerce, the company said. “While the company is encouraged by the strong sales performance quarter-to-date, it does anticipate gross margin headwinds for the fiscal second quarter 2020” thanks to the increased shipping charges associated with the higher e-commerce sales, it said. As did other non-essential businesses, Shoe Carnival closed its brick-and-mortar stores in March on health orders designed to curb the spread of the coronavirus. It had been reopening its stores since late April. “As we have slowly re-emerged with heightened safety procedures, we have welcomed back our customers to stores, and as a result, fiscal second quarter-to-date sales have exceeded our expectations. While there are still many unknowns, we are encouraged by these more than positive sales trends,” Chief Executive Cliff Sifford said in the statement. Shoe Carnival is expected to report fiscal second-quarter results in August. The stock ended the regular trading day up 3.6%.

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