Shifts in consumer spending due to recession worries have not benefited discount footwear retailers Shoe Carnival Inc. (NASDAQ: SCVL) or DSW Inc. (NYSE: DSW), as both of them reported declines in their profits in the first quarter.
Shoe Carnival said its first-quarter profit fell 34% to $4.8 million, or 38 cents per share, due to softer-than-expected seasonal sales and economic conditions. Revenue slipped 2% to $162.1 million.
Analysts polled by Thomson Financial had expected earnings of 37 cents per share on sales of $164.8 million.
The Evansville, Indiana-based company said same-store sales declined 4.9% during the quarter, and warned that the "challenging economic environment" would likely influence results for the remainder of the year.
Shares of Shoe Carnival fell 47 cents, or 3.6%, after the opening bell Thursday but bounced right back. Shares have fallen about 8% since the beginning of the year.
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