Shoe Carnival, Inc. (NASDAQ:SCVL) Q4 2022 Earnings Conference Call March 22, 2023 8:30 AM ET

Company Participants

Mark Worden - President and Chief Executive Officer

Kerry Jackson - Chief Financial and Administrative Officer

Carl Scibetta - Chief Merchandising Officer

Conference Call Participants

Mitch Kummetz - Seaport Research

Sam Poser - Williams Trading

Jim Chartier - Monness, Crespi and Hardt

Operator

Good morning and welcome to Shoe Carnival’s Fourth Quarter 2022 Earnings Conference Call. Today’s conference is being recorded. It is also being broadcast via webcast. Any reproduction or rebroadcast of any portion of this call is expressly prohibited.

Management’s remarks may contain forward-looking statements that involve a number of risk factors. These factors could cause the company’s actual results to be materially different from those projected in such statements. Forward-looking statements should also be considered in conjunction with the discussion of risk factors included in the company’s SEC filings and today’s earnings press release. Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of today’s date. The company disclaims any obligation to update any of the risk factors or to publicly announce any revisions to the forward-looking statements discussed on today’s conference call or contained in today’s press release to reflect future events or developments.

I would now like to turn the conference over to Mr. Mark Worden, President and CEO of Shoe Carnival for opening remarks. Mr. Worden, you may begin.

Mark Worden

Good morning and welcome to Shoe Carnival’s fourth quarter 2022 earnings conference call. Joining me on today’s call are Kerry Jackson, Chief Financial and Administrative Officer, and Carl Scibetta, Chief Merchandising Officer.

Let me start today out by thanking our nearly 6,000 team members. During 2022, they ensured our customer shopping experience at Shoe Carnival and Shoe Station stores across the country was exceptional, with the freshest branded products, a modernized shopping experience, more convenient locations to shop and dedicated service to always meet our customers’ needs. As we start fiscal 2023 and I look ahead, we are well positioned to execute our strategic growth plan to become a multibillion dollar retailer by 2028 and to provide our shareholders with the top tier returns in our sector.

I would now like to begin by reviewing the highlights from 2022. First, during 2022, we grew our customer base to over 32 million, with our loyalty membership surging over 34% from just 3 years ago. Every day of every week, we are learning more about these customers, enabling us to better segment our customer base, better identify the optimal product for them and to better engage them with meaningful messages and the freshest products.