Shoe Carnival Inc. (NASDAQ:SCVL) Q1 2019 Earnings Conference Call - Final Transcript
May 22, 2019 • 04:30 pm ET
our buying, distribution and occupancy expense. This deleveraging will be more than offset by the leveraging of our SG&A expense resulting in a small increase in our operating margin.
The deleveraging of occupancy cost is a result of recording in Q2 last year of $1 million lease terminations benefit for two stores in Puerto Rico, where the landlord cannot make and check contractually required hurricane repairs within the allotted time.
The leveraging of our SG&A is due to expected lower equity and incentive compensation during Q2 this year. Based on our strong earnings in Q2 last year, we incurred an increase in incentive and equity compensation expense of $4.8 million. In Q2 of this year, we are expecting a more typical level of expense.
This concludes our financial review. I'd now like to open the call for questions.