·	Net sales increased 14.2 percent to $268.4 million compared to the second quarter last year, with approximately $19.7 million of this increase attributable to the one-week shift in the calendar due to fiscal 2017 being a 53-week year

·	Comparable store sales increased 6.7 percent

·	Earnings per diluted share increased 217 percent to $0.76

Cliff Sifford, Shoe Carnival's President and Chief Executive Officer commented, "We are pleased with our strong financial results for the second quarter which exceeded our expectations. Our mid-single digit comparable store sales increase was primarily driven by a double-digit increase in women's non-athletic footwear with most of our other major footwear categories up mid-single digits. This positive trend has accelerated into the back-to-school season with comparable store sales up 7.7 percent through the first three weeks of August.  This sales increase was on top of a 7.0 percent increase in the full month of August last year.  We believe we remain well positioned for future growth and based on these strong operational and financial results, as well as our outlook for the remainder of the year, we are raising our annual earnings guidance."

Selling, general and administrative expenses for the second quarter of fiscal 2018 increased $7.0 million to $68.9 million.  The increase in expense was primarily due to incentive and equity compensation as a result of the improved financial performance of the Company and advertising expense to support back-to-school sales.  As a percentage of net sales, these expenses decreased to 25.6 percent compared to 26.3 percent in the second quarter of fiscal 2017.

Net income for the second quarter of fiscal 2018 was $11.8 million, or $0.76 per diluted share.  For the second quarter of fiscal 2017, the Company reported net income of $3.9 million, or $0.24 per diluted share.

Net sales during the six months ended August 4, 2018 increased $37.4 million to $525.8 million compared to the six months ended July 29, 2017.  Comparable store sales for the twenty-six week period ended August 4, 2018 increased 4.0 percent compared to the twenty-six week period ended August 5, 2017.

Net earnings for the first six months of fiscal 2018 were $24.7 million, or $1.59 per diluted share, compared to net earnings of $12.1 million, or $0.73 per diluted share, in the first six months of fiscal 2017.  The gross profit margin for the first six months of fiscal 2018 was 30.6 percent compared to 28.7 percent in the same period last year.  Selling, general and administrative expenses for the first six months increased $8.1 million to $128.9 million.  As a percentage of net sales, these expenses decreased to 24.5 percent compared to 24.7 percent in the first six months of fiscal 2017.  The Company closed six stores during the first six months of fiscal 2018 compared to 12 store openings and nine store closings in the first six months of fiscal 2017.

Cautionary Statement Regarding Forward-Looking Information

This press release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, that involve a number of risks and uncertainties.  A number of factors could cause our actual results, performance, achievements or industry results to be materially different from any future results, performance or achievements expressed or implied by these forward-looking

statements.  These factors include, but are not limited to: general economic conditions in the areas of the continental United States in which our stores are located and the impact of the ongoing economic crisis and hurricane recovery in Puerto Rico on sales at, and cash flows of, our stores located in Puerto Rico; the effects and duration of economic downturns and unemployment rates; changes in the overall retail environment and more specifically in the apparel and footwear retail sectors; our ability to generate increased sales at our stores; our ability to successfully navigate the increasing use of on-line retailers for fashion purchases and the impact on traffic and transactions in our physical stores; our ability to attract customers to our e-commerce website and to successfully grow our e-commerce sales; the potential impact of national and international security concerns on the retail environment; changes in our relationships with key suppliers; the impact of competition and pricing; our ability to successfully manage and execute our marketing initiatives and maintain positive brand perception and recognition; changes in weather patterns, consumer buying trends and our ability to identify and respond to emerging fashion trends; the impact of disruptions in our distribution or information technology operations; the effectiveness of our inventory management; the impact of natural disasters on our stores, as well as on consumer confidence and purchasing in general; risks associated with the seasonality of the retail industry; the impact of unauthorized disclosure or misuse of personal and confidential information about our customers, vendors and employees, including as a result of a cyber-security breach; our ability to manage our third-party vendor relationships; our ability to successfully execute our business strategy, including the availability of desirable store locations at acceptable lease terms, our ability to open new stores in a timely and profitable manner, including our entry into major new markets, and the availability of sufficient funds to implement our business plans; higher than anticipated costs associated with the closing of underperforming stores; the inability of manufacturers to deliver products in a timely manner; changes in the political and economic environments in, the status of trade relations with, and the impact of changes in trade policies and tariffs impacting, China and other countries which are the major manufacturers of footwear; the impact of regulatory changes in the United States and the countries where our manufacturers are located; the resolution of litigation or regulatory proceedings in which we are or may become involved; our ability to meet our labor needs while controlling costs; the impact of the U.S. Tax Cuts and Jobs Act of 2017; and future stock repurchases under our stock repurchase program and future dividend payments; and other factors described in the Company's SEC filings, including the Company's latest Annual Report on Form 10-K.

In addition, these forward-looking statements necessarily depend upon assumptions, estimates and dates that may be incorrect or imprecise and involve known and unknown risks, uncertainties and other factors.  Accordingly, any forward-looking statements included in this press release do not purport to be predictions of future events or circumstances and may not be realized.  Forward-looking statements can be identified by, among other things, the use of forward-looking terms such as "believes," "expects," "may," "will," "should," "seeks," "pro forma," "anticipates," "intends" or the negative of any of these terms, or comparable terminology, or by discussions of strategy or intentions.  Given these uncertainties, we caution investors not to place undue reliance on these forward-looking statements, which speak only as of the date hereof.  We disclaim any obligation to update any of these factors or to publicly announce any revisions to the forward-looking statements contained in this press release to reflect future events or developments.