By Dhirendra Tripathi

Investing.com – Shoe Carnival Stock (NASDAQ): The stock was 7% more expensive after the shoe retailer gave an optimistic outlook and approved a 29% increase in dividends.

In every quarter 2021, the company saw double-digit sales growth with triple-digit profit per share growth. The company completed a multiyear program to improve store productivity. Its benefits are reflected in positive cash flows each of the 323 stores produced in the previous financial year.

The company now expects its operating revenue for the current year to range from $142 to $154 millions, nearly three times its level before 2019. At the midpoint in its guidance range, profit per share was $3.85. This compares to $1.46 in 2019. As consumers return to shops with a greater focus on health after the pandemic, and also to re-do the wardrobes they have worn for two years, the company expects to make $3.85 to $3.85 profit per share. 

The current year’s sales are expected to rise by between 4% and 7%, on top of the 36% growth in 2021 sales that will bring them to $1.33 Billion.

President and CEO Mark Worden said momentum in the fourth quarter “was very strong.” Shop traffic rose 18%

The fourth quarter’s net sales grew 23% to $313million, thanks to an increase in customer acquisition and store traffic. The adjusted profit per share increased more than 50% to 72 cents, beating estimates.

The fewer margin-dilutive promotional offers and the higher average selling price drove a 5.1 percent increase in merchandise margin.

Company is working to expand its store count. The plan calls for the addition of 10+ to 20+ or 25+ additional stores within the three-year period from 2024 to 2024.