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<SEC-DOCUMENT>0001206774-07-001570.txt : 20070614
<SEC-HEADER>0001206774-07-001570.hdr.sgml : 20070614
<ACCEPTANCE-DATETIME>20070614154948
ACCESSION NUMBER:		0001206774-07-001570
CONFORMED SUBMISSION TYPE:	10-Q
PUBLIC DOCUMENT COUNT:		5
CONFORMED PERIOD OF REPORT:	20070505
FILED AS OF DATE:		20070614
DATE AS OF CHANGE:		20070614

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SHOE CARNIVAL INC
		CENTRAL INDEX KEY:			0000895447
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-SHOE STORES [5661]
		IRS NUMBER:				351736614
		STATE OF INCORPORATION:			IN
		FISCAL YEAR END:			0202

	FILING VALUES:
		FORM TYPE:		10-Q
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-21360
		FILM NUMBER:		07920008

	BUSINESS ADDRESS:	
		STREET 1:		7500 EAST COLUMBIA STREET
		CITY:			EVANSVILLE
		STATE:			IN
		ZIP:			47715
		BUSINESS PHONE:		8128676471

	MAIL ADDRESS:	
		STREET 1:		7500 EAST COLUMBIA STREET
		CITY:			EVANSVILLE
		STATE:			IN
		ZIP:			47715
</SEC-HEADER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>shoecarnival_10q.htm
<DESCRIPTION>QUARTERLY REPORT
<TEXT>

<HTML>
<HEAD>
   <TITLE></TITLE>
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<BODY bgcolor="#ffffff">

<P align=center><B><FONT face=serif size=2>UNITED STATES<BR></FONT></B><B><FONT face=serif size=2>SECURITIES AND EXCHANGE COMMISSION<BR></FONT></B><FONT face=serif size=2>Washington, D.C. 20549</FONT></P>
<P align=center><B><FONT face=serif size=2>Form 10-Q </FONT></B></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="1%"><B><FONT face=serif size=2>[X]</FONT></B></TD>
    <TD noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    </TD>
    <TD noWrap align=left width="97%"><B><FONT face=serif size=2>Quarterly
      report pursuant to Section 13 or 15(d) of the Securities Exchange Act of
      1934</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="97%"><FONT face=serif size=2>For the
      quarterly period ended</FONT>&nbsp; <B><FONT face=serif size=2>May 5,
      2007</FONT></B>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="99%" colSpan=3><FONT face=serif size=2>or</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%"><B><FONT face=serif size=2>[&nbsp;
      ]</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="97%"><B><FONT face=serif size=2>Transition
      report pursuant to Section 13 or 15(d) of the Securities Exchange Act of
      1934</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="97%"><FONT face=serif size=2>For the
      transition period from __________________</FONT>&nbsp;<FONT face=serif size=2><B>to
</B>__________________<B>&nbsp;</B></FONT></TD></TR></TABLE><BR>
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 width="85%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="15%"><FONT face=serif size=2>Commission File
      Number:</FONT>&nbsp; </TD>
    <TD noWrap align=left width="20%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="64%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      0-21360</FONT>&nbsp; </TD></TR></TABLE></DIV><BR>
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 width="85%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=center width="100%"><B><FONT face=serif size=2>Shoe Carnival, Inc.</FONT></B>
  </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="100%"><I><FONT face=serif size=2>(Exact
      name of registrant as specified in its charter)</FONT></I>&nbsp;
  </TD></TR></TABLE></DIV><BR>
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 width="85%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="47%"><B><FONT face=serif size=2>Indiana</FONT></B>&nbsp; </TD>
    <TD noWrap align=center width="5%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="48%"><B><FONT face=serif size=2>35-1736614</FONT></B>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="47%"><I><FONT face=serif size=2>(State or
      other jurisdiction of</FONT></I>&nbsp; </TD>
    <TD noWrap align=center width="5%"></TD>
    <TD noWrap align=center width="48%"><I><FONT face=serif size=2>(IRS
      Employer Identification Number)</FONT></I>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="47%"><I><FONT face=serif size=2>incorporation or organization)</FONT></I>&nbsp; </TD>
    <TD noWrap align=left width="5%"></TD>
    <TD noWrap align=left width="48%">&nbsp; </TD></TR>
  <TR>
    <TD width="100%" colSpan=3>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="47%"><B><FONT face=serif size=2>7500 East
      Columbia Street</FONT></B>&nbsp; </TD>
    <TD noWrap align=left width="5%"></TD>
    <TD noWrap align=left width="48%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="47%"><B><FONT face=serif size=2>Evansville, IN</FONT></B>&nbsp; </TD>
    <TD noWrap align=center width="5%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="48%"><B><FONT face=serif size=2>47715</FONT></B>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="47%"><I><FONT face=serif size=2>(Address of
      principal executive offices)</FONT></I>&nbsp; </TD>
    <TD noWrap align=center width="5%"></TD>
    <TD noWrap align=center width="48%"><I><FONT face=serif size=2>(Zip
      code)</FONT></I>&nbsp; </TD></TR></TABLE></DIV><BR>
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 width="85%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="100%"><B><FONT size=2>(812) <FONT face=serif>867-6471</FONT></FONT></B>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="100%"><I><FONT face=serif size=2>(Registrant&#146;s telephone number, including area
      code)</FONT></I>&nbsp; </TD></TR></TABLE></DIV><BR>
<P style="PADDING-RIGHT: 24pt; PADDING-LEFT: 24pt" align=left><FONT face=serif size=2>Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. </FONT></P>
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 width="75%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="25%"><FONT face=serif size=2>[X]Yes</FONT>&nbsp; </TD>
    <TD noWrap align=left width="74%"><FONT face=serif size=2>[&nbsp;
      ]No</FONT>&nbsp; </TD></TR></TABLE></DIV><BR>
<P style="PADDING-RIGHT: 24pt; PADDING-LEFT: 24pt" align=left><FONT face=serif size=2>Indicate by check mark whether the registrant is a large accelerated
filer, an accelerated filer, or a non-accelerated filer. See definition of
&#147;accelerated filer and large accelerated filer&#148; in Rule 12b-2 of the Exchange
Act. </FONT></P>
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 width="75%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="31%"><FONT face=serif size=2>[&nbsp; ]Large
      accelerated filer</FONT>&nbsp; </TD>
    <TD noWrap align=left width="34%"><FONT face=serif size=2>[X]Accelerated
      filer</FONT>&nbsp; </TD>
    <TD noWrap align=left width="34%"><FONT face=serif size=2>[&nbsp;
      ]Non-accelerated filer</FONT>&nbsp; </TD></TR></TABLE></DIV><BR>
<P style="PADDING-RIGHT: 24pt; PADDING-LEFT: 24pt" align=left><FONT face=serif size=2>Indicate by check mark whether the registrant is a shell company (as
defined in Rule 12b-2 of the Exchange Act). </FONT></P>
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 width="75%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="25%"><FONT face=serif size=2>[&nbsp;
      ]Yes</FONT>&nbsp; </TD>
    <TD noWrap align=left width="74%"><FONT face=serif size=2>[X]No</FONT>&nbsp; </TD></TR></TABLE></DIV><BR>
<P align=center><FONT face=serif size=2>APPLICABLE ONLY TO CORPORATE ISSUERS:
</FONT></P>
<P style="PADDING-RIGHT: 24pt; PADDING-LEFT: 24pt" align=left><FONT face=serif size=2>Indicate the number of shares outstanding of each of the issuer&#146;s classes
of common stock, as of the latest practicable date. </FONT></P>
<P style="PADDING-RIGHT: 24pt; PADDING-LEFT: 24pt" align=center><FONT face=serif size=2>Number of Shares of Common Stock, $.01 par value, outstanding at June 8,
2007 were 13,020,315. </FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=center><B><FONT face=serif size=2>SHOE CARNIVAL, INC.<BR>INDEX TO FORM
10-Q </FONT></B></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="4%">&nbsp; </TD>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD noWrap align=left width="86%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><B><FONT face=serif size=2>Page</FONT></B>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%" bgColor=#c0c0c0><FONT face=serif size=2>Part I&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT>&nbsp;</TD>
    <TD noWrap align=left width="93%" bgColor=#c0c0c0 colSpan=2><FONT face=serif size=2>Financial Information</FONT> </TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%">&nbsp; </TD>
    <TD noWrap align=left width="7%"><FONT face=serif size=2>Item 1.</FONT>
</TD>
    <TD noWrap align=left width="86%"><FONT face=serif size=2>Financial
      Statements (Unaudited)</FONT> </TD>
    <TD noWrap align=left width="2%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="93%" bgColor=#c0c0c0 colSpan=2>&nbsp; &nbsp;
      &nbsp; &nbsp;<FONT face=serif size=2>Condensed Consolidated Balance
      Sheets</FONT> </TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>3</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%">&nbsp; </TD>
    <TD noWrap align=left width="93%" colSpan=2>&nbsp; &nbsp; &nbsp;
      &nbsp;<FONT face=serif size=2>Condensed Consolidated Statements of
      Income</FONT> </TD>
    <TD noWrap align=right width="2%"><FONT face=serif size=2>4</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="93%" bgColor=#c0c0c0 colSpan=2>&nbsp; &nbsp;
      &nbsp; &nbsp;<FONT face=serif size=2>Condensed Consolidated Statement of
      Shareholders' Equity</FONT> </TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>5</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%">&nbsp; </TD>
    <TD noWrap align=left width="93%" colSpan=2>&nbsp; &nbsp; &nbsp;
      &nbsp;<FONT face=serif size=2>Condensed Consolidated Statements of Cash
      Flows</FONT> </TD>
    <TD noWrap align=right width="2%"><FONT face=serif size=2>6</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="93%" bgColor=#c0c0c0 colSpan=2>&nbsp; &nbsp;
      &nbsp; &nbsp;<FONT face=serif size=2>Notes to Condensed Consolidated
      Financial Statements</FONT> </TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>7 - 10</FONT> </TD></TR>
  <TR>
    <TD width="99%" colSpan=4>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="7%" bgColor=#c0c0c0><FONT face=serif size=2>Item 2.</FONT> </TD>
    <TD noWrap align=left width="86%" bgColor=#c0c0c0><FONT face=serif size=2>Management's Discussion and Analysis of Financial Condition and
      Results of Operations</FONT>&nbsp; </TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>11 - 15</FONT> </TD></TR>
  <TR>
    <TD width="99%" colSpan=4>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="7%" bgColor=#c0c0c0><FONT face=serif size=2>Item 3.</FONT> </TD>
    <TD noWrap align=left width="86%" bgColor=#c0c0c0><FONT face=serif size=2>Quantitative and Qualitative Disclosures About Market Risk</FONT>
    </TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>16</FONT> </TD></TR>
  <TR>
    <TD width="99%" colSpan=4>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="7%" bgColor=#c0c0c0><FONT face=serif size=2>Item 4.</FONT> </TD>
    <TD noWrap align=left width="86%" bgColor=#c0c0c0><FONT face=serif size=2>Controls and Procedures</FONT> </TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>16</FONT> </TD></TR>
  <TR>
    <TD width="99%" colSpan=4>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%" bgColor=#c0c0c0><FONT face=serif size=2>Part II</FONT> </TD>
    <TD noWrap align=left width="93%" bgColor=#c0c0c0 colSpan=2><FONT face=serif size=2>Other Information</FONT> </TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%" bgColor=#ffffff>&nbsp; </TD>
    <TD noWrap align=left width="7%"><FONT face=serif size=2>Item 1A.</FONT>
    </TD>
    <TD noWrap align=left width="86%"><FONT face=serif size=2>Risk
      Factors</FONT>&nbsp; </TD>
    <TD noWrap align=right width="2%"><FONT face=serif size=2>17</FONT> </TD></TR>
  <TR>
    <TD width="99%" colSpan=4>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="7%" bgColor=#c0c0c0><FONT face=serif size=2>Item 2.</FONT> </TD>
    <TD noWrap align=left width="86%" bgColor=#c0c0c0><FONT face=serif size=2>Unregistered Sales of Equity Securities and Use of Proceeds</FONT>
    </TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>17</FONT> </TD></TR>
  <TR>
    <TD width="99%" colSpan=4>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="7%" bgColor=#c0c0c0><FONT face=serif size=2>Item 6.</FONT> </TD>
    <TD noWrap align=left width="86%" bgColor=#c0c0c0><FONT face=serif size=2>Exhibits</FONT> </TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>17 - 19<FONT style="BACKGROUND-COLOR: #c0c0c0" size=3>
      </FONT></FONT></TD></TR>
  <TR>
    <TD width="99%" colSpan=4>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="7%" bgColor=#c0c0c0><FONT face=serif size=2>Signature</FONT> </TD>
    <TD noWrap align=left width="86%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>20</FONT> </TD></TR></TABLE><BR>
<P align=center><FONT face=serif size=2>2</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE><BR>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD align=center width="100%"><B><FONT face=serif size=2>SHOE CARNIVAL,
      INC.</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="100%"><B><FONT face=serif size=2>PART I -
      FINANCIAL INFORMATION</FONT></B>&nbsp; </TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="1%"><B><FONT face=serif size=2>ITEM
      1.</FONT></B></TD>
    <TD noWrap align=left width="2%">&nbsp;&nbsp; </TD>
    <TD noWrap align=left width="97%"><B><FONT face=serif size=2>FINANCIAL
      STATEMENTS</FONT></B></TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD align=center width="100%" colSpan=9><B><FONT face=serif size=2>SHOE
      CARNIVAL, INC.</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD align=center width="100%" colSpan=9><B><FONT face=serif size=2>CONDENSED CONSOLIDATED BALANCE SHEETS</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD align=center width="100%" colSpan=9><B><FONT face=serif size=2>Unaudited</FONT></B> </TD></TR>
  <TR>
    <TD width="100%" colSpan=9>&nbsp; </TD></TR>
  <TR>
    <TD width="100%" colSpan=9>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="72%">&nbsp; </TD>
    <TD noWrap align=center width="8%" colSpan=2><B><FONT face=serif size=2>May 5,</FONT></B> </TD>
    <TD noWrap align=center width="2%">&nbsp; </TD>
    <TD noWrap align=center width="8%" colSpan=2><B><FONT face=serif size=2>February 3,</FONT></B> </TD>
    <TD noWrap align=center width="2%"></TD>
    <TD noWrap align=center width="8%" colSpan=2><B><FONT face=serif size=2>April 29,</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="72%"><B><FONT face=serif size=2>(In
      thousands, except per share data)</FONT></B>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="8%" colSpan=2><B><FONT face=serif size=2>2007</FONT></B> </TD>
    <TD noWrap align=center width="2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="8%" colSpan=2><B><FONT face=serif size=2>2007</FONT></B> </TD>
    <TD noWrap align=center width="2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="8%" colSpan=2><B><FONT face=serif size=2>2006</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="72%" bgColor=#c0c0c0><B><FONT face=serif size=2>Assets</FONT></B>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="7%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="7%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="7%" bgColor=#c0c0c0>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="72%"><FONT face=serif size=2>Current
      Assets:</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="7%"></TD>
    <TD noWrap align=left width="2%">&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="7%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="72%" bgColor=#c0c0c0>&nbsp; &nbsp;<FONT face=serif size=2>Cash and cash equivalents</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="7%" bgColor=#c0c0c0><FONT face=serif size=2>21,293</FONT> </TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="7%" bgColor=#c0c0c0><FONT face=serif size=2>34,839</FONT> </TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="7%" bgColor=#c0c0c0><FONT face=serif size=2>31,958</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="72%">&nbsp; &nbsp;<FONT face=serif size=2>Accounts receivable</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=right width="7%"><FONT face=serif size=2>793</FONT> </TD>
    <TD noWrap align=left width="2%">&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="7%"><FONT face=serif size=2>948</FONT> </TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="7%"><FONT face=serif size=2>1,202</FONT>
  </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="72%" bgColor=#c0c0c0>&nbsp; &nbsp;<FONT face=serif size=2>Merchandise inventories</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=right width="7%" bgColor=#c0c0c0><FONT face=serif size=2>182,646</FONT> </TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=right width="7%" bgColor=#c0c0c0><FONT face=serif size=2>196,662</FONT> </TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=right width="7%" bgColor=#c0c0c0><FONT face=serif size=2>174,388</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="72%" bgColor=#ffffff>&nbsp; &nbsp;<FONT face=serif size=2>Deferred income tax benefit</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp; </TD>
    <TD noWrap align=right width="7%" bgColor=#ffffff><FONT face=serif size=2>2,192</FONT> </TD>
    <TD noWrap align=left width="2%" bgColor=#ffffff>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp; </TD>
    <TD noWrap align=right width="7%" bgColor=#ffffff><FONT face=serif size=2>2,088</FONT> </TD>
    <TD noWrap align=left width="2%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp; </TD>
    <TD noWrap align=right width="7%" bgColor=#ffffff><FONT face=serif size=2>1,135</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="72%" bgColor=#c0c0c0>&nbsp; &nbsp;<FONT face=serif size=2>Other</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="7%" bgColor=#c0c0c0><FONT face=serif size=2>7,307</FONT> </TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="7%" bgColor=#c0c0c0><FONT face=serif size=2>2,605</FONT> </TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="7%" bgColor=#c0c0c0><FONT face=serif size=2>3,673</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="72%"><FONT face=serif size=2>Total Current
      Assets</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="7%"><FONT face=serif size=2>214,231</FONT>
    </TD>
    <TD noWrap align=left width="2%">&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="7%"><FONT face=serif size=2>237,142</FONT>
    </TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="7%"><FONT face=serif size=2>212,356</FONT>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="72%" bgColor=#c0c0c0><FONT face=serif size=2>Property and equipment-net</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="7%" bgColor=#c0c0c0><FONT face=serif size=2>74,005</FONT> </TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="7%" bgColor=#c0c0c0><FONT face=serif size=2>74,020</FONT> </TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="7%" bgColor=#c0c0c0><FONT face=serif size=2>58,319</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="72%"><FONT face=serif size=2>Total
      Assets</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="7%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 288,236</FONT> </TD>
    <TD noWrap align=left width="2%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="7%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 311,162</FONT> </TD>
    <TD noWrap align=right width="2%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="7%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 270,675</FONT>
  </TD></TR>
  <TR>
    <TD width="100%" colSpan=9>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="72%" bgColor=#c0c0c0><B><FONT face=serif size=2>Liabilities and Shareholders' Equity</FONT></B>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="7%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="7%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="7%" bgColor=#c0c0c0>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="72%"><FONT face=serif size=2>Current
      Liabilities:</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="7%"></TD>
    <TD noWrap align=left width="2%">&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="7%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="72%" bgColor=#c0c0c0>&nbsp; &nbsp;<FONT face=serif size=2>Accounts payable</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="7%" bgColor=#c0c0c0><FONT face=serif size=2>38,304</FONT> </TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="7%" bgColor=#c0c0c0><FONT face=serif size=2>70,352</FONT> </TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="7%" bgColor=#c0c0c0><FONT face=serif size=2>49,313</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="72%">&nbsp; &nbsp;<FONT face=serif size=2>Accrued and other liabilities</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="7%"><FONT face=serif size=2>15,405</FONT> </TD>
    <TD noWrap align=left width="2%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="7%"><FONT face=serif size=2>14,576</FONT> </TD>
    <TD noWrap align=left width="2%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="7%"><FONT face=serif size=2>14,035</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="72%" bgColor=#c0c0c0><FONT face=serif size=2>Total Current Liabilities</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=right width="7%" bgColor=#c0c0c0><FONT face=serif size=2>53,709</FONT> </TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=right width="7%" bgColor=#c0c0c0><FONT face=serif size=2>84,928</FONT> </TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=right width="7%" bgColor=#c0c0c0><FONT face=serif size=2>63,348</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="72%"><FONT face=serif size=2>Deferred lease
      incentives</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="7%"><FONT face=serif size=2>5,814</FONT> </TD>
    <TD noWrap align=left width="2%">&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="7%"><FONT face=serif size=2>6,095</FONT> </TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="7%"><FONT face=serif size=2>5,978</FONT>
  </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="72%" bgColor=#c0c0c0><FONT face=serif size=2>Accrued rent</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=right width="7%" bgColor=#c0c0c0><FONT face=serif size=2>6,195</FONT> </TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=right width="7%" bgColor=#c0c0c0><FONT face=serif size=2>6,260</FONT> </TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=right width="7%" bgColor=#c0c0c0><FONT face=serif size=2>6,421</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="72%"><FONT face=serif size=2>Deferred income
      taxes</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="7%"><FONT face=serif size=2>477</FONT> </TD>
    <TD noWrap align=left width="2%">&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="7%"><FONT face=serif size=2>781</FONT> </TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="7%"><FONT face=serif size=2>1,833</FONT>
  </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="72%" bgColor=#c0c0c0><FONT face=serif size=2>Deferred compensation</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=right width="7%" bgColor=#c0c0c0><FONT face=serif size=2>3,469</FONT> </TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=right width="7%" bgColor=#c0c0c0><FONT face=serif size=2>3,149</FONT> </TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=right width="7%" bgColor=#c0c0c0><FONT face=serif size=2>2,525</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="72%"><FONT face=serif size=2>Other</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="7%"><FONT face=serif size=2>784</FONT> </TD>
    <TD noWrap align=left width="2%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="7%"><FONT face=serif size=2>0</FONT> </TD>
    <TD noWrap align=left width="2%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="7%"><FONT face=serif size=2>0</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="72%" bgColor=#c0c0c0><FONT face=serif size=2>Total Liabilities</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="7%" bgColor=#c0c0c0><FONT face=serif size=2>70,448</FONT> </TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="7%" bgColor=#c0c0c0><FONT face=serif size=2>101,213</FONT> </TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="7%" bgColor=#c0c0c0><FONT face=serif size=2>80,105</FONT> </TD></TR>
  <TR>
    <TD width="100%" colSpan=9>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="72%" bgColor=#c0c0c0><FONT face=serif size=2>Shareholders' Equity:</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="7%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="7%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="7%" bgColor=#c0c0c0>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="72%">&nbsp; &nbsp;<FONT face=serif size=2>Common stock, $.01 par value, 50,000 shares authorized,</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="7%"></TD>
    <TD noWrap align=left width="2%">&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="7%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="72%">&nbsp; &nbsp; &nbsp;<FONT face=serif size=2>13,673, 13,561 and 13,395 shares issued at, May 5, 2007,</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="7%"></TD>
    <TD noWrap align=left width="2%">&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="7%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="72%">&nbsp; &nbsp; &nbsp;<FONT face=serif size=2>February 3, 2007 and April 29, 2006, respectively</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="7%"><FONT face=serif size=2>137</FONT> </TD>
    <TD noWrap align=left width="2%">&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="7%"><FONT face=serif size=2>136</FONT> </TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="7%"><FONT face=serif size=2>134</FONT>
</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="72%" bgColor=#c0c0c0>&nbsp; &nbsp;<FONT face=serif size=2>Additional paid-in capital</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=right width="7%" bgColor=#c0c0c0><FONT face=serif size=2>74,858</FONT> </TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=right width="7%" bgColor=#c0c0c0><FONT face=serif size=2>73,959</FONT> </TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=right width="7%" bgColor=#c0c0c0><FONT face=serif size=2>70,946</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="72%">&nbsp; &nbsp;<FONT face=serif size=2>Retained earnings</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="7%"><FONT face=serif size=2>143,067</FONT>
    </TD>
    <TD noWrap align=left width="2%">&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="7%"><FONT face=serif size=2>135,854</FONT>
    </TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="7%"><FONT face=serif size=2>119,490</FONT>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="72%" bgColor=#c0c0c0>&nbsp; &nbsp;<FONT face=serif size=2>Treasury stock, at cost, 8 shares at May 5, 2007 and 0
      shares</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="7%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="7%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="7%" bgColor=#c0c0c0>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="72%" bgColor=#c0c0c0>&nbsp; &nbsp;
      &nbsp;<FONT face=serif size=2>at February 3, 2007 and April 29,
      2006</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="7%" bgColor=#c0c0c0><FONT face=serif size=2>(274</FONT> </TD>
    <TD style="BORDER-BOTTOM: #c0c0c0 1pt solid" noWrap align=left width="2%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="7%" bgColor=#c0c0c0><FONT face=serif size=2>0</FONT> </TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="7%" bgColor=#c0c0c0><FONT face=serif size=2>0</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="72%"><FONT face=serif size=2>Total
      Shareholders' Equity</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="7%"><FONT face=serif size=2>217,788</FONT> </TD>
    <TD noWrap align=left width="2%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="7%"><FONT face=serif size=2>209,949</FONT> </TD>
    <TD noWrap align=left width="2%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="7%"><FONT face=serif size=2>190,570</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="72%" bgColor=#c0c0c0><FONT face=serif size=2>Total Liabilities and Shareholders' Equity</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="7%" bgColor=#c0c0c0><FONT face=serif size=2>288,236</FONT> </TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="7%" bgColor=#c0c0c0><FONT face=serif size=2>311,162</FONT> </TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="7%" bgColor=#c0c0c0><FONT face=serif size=2>270,675</FONT>
</TD></TR></TABLE><BR>
<P align=left><FONT face=serif size=2>See notes to condensed consolidated
financial statements. </FONT></P>
<P align=center><FONT face=serif size=2>3</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE><BR>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=center width="99%" colSpan=7>&nbsp; <B><FONT face=serif size=2>SHOE CARNIVAL, INC.</FONT></B> &nbsp; &nbsp; &nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="99%" colSpan=7><B><FONT face=serif size=2>CONDENSED CONSOLIDATED STATEMENTS OF INCOME</FONT></B> &nbsp;
      &nbsp; &nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="99%" colSpan=7><B><FONT face=serif size=2>Unaudited</FONT></B> </TD></TR>
  <TR>
    <TD width="99%" colSpan=7>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%">&nbsp; </TD>
    <TD noWrap align=center width="6%" colSpan=2><B><FONT face=serif size=2>Thirteen</FONT></B> </TD>
    <TD noWrap align=center width="5%">&nbsp; </TD>
    <TD noWrap align=center width="6%" colSpan=2><B><FONT face=serif size=2>Thirteen</FONT></B> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%">&nbsp; </TD>
    <TD noWrap align=center width="6%" colSpan=2><B><FONT face=serif size=2>Weeks Ended</FONT></B> </TD>
    <TD noWrap align=center width="5%">&nbsp; </TD>
    <TD noWrap align=center width="6%" colSpan=2><B><FONT face=serif size=2>Weeks Ended</FONT></B> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%"><B><FONT face=serif size=2>(In
      thousands, except per share data)</FONT></B>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="6%" colSpan=2>&nbsp; <B><FONT face=serif size=2>May 5, 2007</FONT></B> </TD>
    <TD noWrap align=center width="5%"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="6%" colSpan=2><B><FONT face=serif size=2>April 29, 2006</FONT></B> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%" bgColor=#c0c0c0><FONT face=serif size=2>Net sales</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT>&nbsp; </TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>165,653</FONT> </TD>
    <TD noWrap align=left width="5%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT>&nbsp; </TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>168,469</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%"><FONT face=serif size=2>Cost of sales
      (including buying,</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="5%"></TD>
    <TD noWrap align=left width="5%">&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="5%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%" bgColor=#c0c0c0>&nbsp; &nbsp;<FONT face=serif size=2>distribution and occupancy costs)</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>115,862</FONT> </TD>
    <TD noWrap align=left width="5%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>117,019</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%"><FONT face=serif size=2>Gross
      profit</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>49,791</FONT>
</TD>
    <TD noWrap align=left width="5%">&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>51,450</FONT>
</TD>
    <TD noWrap align=left width="1%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%" bgColor=#c0c0c0><FONT face=serif size=2>Selling, general and administrative</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="5%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="5%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="5%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%" bgColor=#c0c0c0>&nbsp; &nbsp;<FONT face=serif size=2>expenses</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>39,325</FONT> </TD>
    <TD noWrap align=left width="5%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>39,634</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%"><FONT face=serif size=2>Operating
      income</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>10,466</FONT>
</TD>
    <TD noWrap align=left width="5%">&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>11,816</FONT>
</TD>
    <TD noWrap align=left width="1%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%" bgColor=#c0c0c0><FONT face=serif size=2>Interest income</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>(334</FONT> </TD>
    <TD noWrap align=left width="5%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>(208</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%"><FONT face=serif size=2>Interest
      expense</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%"><FONT face=serif size=2>32</FONT> </TD>
    <TD noWrap align=left width="5%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%"><FONT face=serif size=2>32</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%" bgColor=#c0c0c0><FONT face=serif size=2>Income before income taxes</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>10,768</FONT> </TD>
    <TD noWrap align=left width="5%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>11,992</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%"><FONT face=serif size=2>Income tax
      expense</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%"><FONT face=serif size=2>3,441</FONT> </TD>
    <TD noWrap align=left width="5%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%"><FONT face=serif size=2>4,592</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%" bgColor=#c0c0c0><FONT face=serif size=2>Net income</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      7,327</FONT> </TD>
    <TD noWrap align=left width="5%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      7,400</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=7>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%" bgColor=#c0c0c0><FONT face=serif size=2>Net income per share:</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="5%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="5%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="5%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%">&nbsp; &nbsp;<FONT face=serif size=2>Basic</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="5%"><FONT face=serif size=2>.54</FONT> </TD>
    <TD noWrap align=left width="5%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="5%"><FONT face=serif size=2>.56</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%" bgColor=#c0c0c0>&nbsp; &nbsp;<FONT face=serif size=2>Diluted</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>.53</FONT> </TD>
    <TD noWrap align=left width="5%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>.54</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
  <TR>
    <TD width="99%" colSpan=7>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%" bgColor=#c0c0c0><FONT face=serif size=2>Average shares outstanding:</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="5%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="5%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="5%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%">&nbsp; &nbsp;<FONT face=serif size=2>Basic</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="5%"><FONT face=serif size=2>13,499</FONT> </TD>
    <TD noWrap align=left width="5%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="5%"><FONT face=serif size=2>13,247</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%" bgColor=#c0c0c0>&nbsp; &nbsp;<FONT face=serif size=2>Diluted</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>13,865</FONT> </TD>
    <TD noWrap align=left width="5%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>13,656</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
</TD></TR></TABLE><BR>
<P align=justify><FONT face=serif size=2>See notes to condensed consolidated
financial statements. </FONT></P>
<P align=center><FONT face=serif size=2>4</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=center><B><FONT face=serif size=2>SHOE CARNIVAL, INC.
<BR></FONT></B><B><FONT face=serif size=2>CONDENSED CONSOLIDATED STATEMENT OF
SHAREHOLDERS' EQUITY<BR>Unaudited</FONT></B></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="66%">&nbsp; </TD>
    <TD noWrap align=center width="2%">&nbsp; </TD>
    <TD noWrap align=center width="3%"></TD>
    <TD noWrap align=center width="3%"></TD>
    <TD noWrap align=center width="1%">&nbsp; </TD>
    <TD noWrap align=center width="1%">&nbsp; </TD>
    <TD noWrap align=center width="3%">&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=2>Additional</FONT></B> </TD>
    <TD noWrap align=center width="1%">&nbsp; </TD>
    <TD noWrap align=center width="1%">&nbsp; </TD>
    <TD noWrap align=center width="3%"></TD>
    <TD noWrap align=center width="1%">&nbsp; </TD>
    <TD noWrap align=center width="1%">&nbsp; </TD>
    <TD noWrap align=center width="3%"></TD>
    <TD noWrap align=center width="1%">&nbsp; </TD>
    <TD noWrap align=center width="1%">&nbsp; </TD>
    <TD noWrap align=center width="3%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="66%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="13%" colSpan=6><B><FONT face=serif size=2>Common Stock</FONT></B> </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=2>Paid-In</FONT></B> </TD>
    <TD noWrap align=center width="1%">&nbsp; </TD>
    <TD noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=2>Retained</FONT></B> </TD>
    <TD noWrap align=center width="1%">&nbsp; </TD>
    <TD noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=2>Treasury</FONT></B> </TD>
    <TD noWrap align=center width="1%">&nbsp; </TD>
    <TD noWrap align=center width="1%">&nbsp; </TD>
    <TD noWrap align=center width="3%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="66%"><B><FONT face=serif size=2>(In
      thousands)</FONT></B>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="2%"><B><FONT face=serif size=2>Issued</FONT></B> </TD>
    <TD noWrap align=center width="3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="3%"><B><FONT face=serif size=2>Treasury</FONT></B> </TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=2>Amount</FONT></B> </TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=2>Capital</FONT></B> </TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=2>Earnings</FONT></B> </TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=2>Stock</FONT></B> </TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=2>Total</FONT></B> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="66%" bgColor=#c0c0c0><FONT face=serif size=2>Balance at</FONT>&nbsp; </TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="66%" bgColor=#c0c0c0>&nbsp; &nbsp;<FONT face=serif size=2>February 3, 2007</FONT>&nbsp; </TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>13,561</FONT> </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>0</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT>&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>136</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT>&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>73,959</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT>&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>135,854</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT>&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>0</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT>&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>209,949</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="66%"><FONT face=serif size=2>Stock option
      exercises</FONT>&nbsp; </TD>
    <TD noWrap align=right width="2%"><FONT face=serif size=2>23</FONT> </TD>
    <TD noWrap align=right width="3%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>(2</FONT> </TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT>&nbsp;
</TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="3%">&nbsp; </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>290</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="3%">&nbsp;</TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>78</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>368</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="66%" bgColor=#c0c0c0><FONT face=serif size=2>Stock-based compensation</FONT>&nbsp; </TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="66%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>income tax benefit</FONT>&nbsp; </TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>367</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>367</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="66%"><FONT face=serif size=2>Employee stock
      purchase</FONT>&nbsp; </TD>
    <TD noWrap align=left width="2%">&nbsp; </TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="3%">&nbsp; </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="3%">&nbsp;</TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="66%">&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>plan purchases</FONT>&nbsp; </TD>
    <TD noWrap align=right width="2%"><FONT face=serif size=2>2</FONT> </TD>
    <TD noWrap align=right width="3%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="3%">&nbsp; </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>63</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>63</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="66%" bgColor=#c0c0c0><FONT face=serif size=2>Restricted stock awards</FONT>&nbsp; </TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>87</FONT> </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(10</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>1</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(295</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>294</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>0</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="66%"><FONT face=serif size=2>Common
      stock</FONT>&nbsp; </TD>
    <TD noWrap align=left width="2%">&nbsp; </TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="3%">&nbsp; </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="66%">&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>repurchased</FONT>&nbsp; </TD>
    <TD noWrap align=left width="2%">&nbsp; </TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>20</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="3%">&nbsp; </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>(646</FONT> </TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT>&nbsp;
</TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>(646</FONT> </TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="66%" bgColor=#c0c0c0><FONT face=serif size=2>Stock-based compensation</FONT>&nbsp; </TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="66%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>expense</FONT>&nbsp; </TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>474</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>474</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="66%"><FONT face=serif size=2>Cumulative
      effect of</FONT>&nbsp; </TD>
    <TD noWrap align=left width="2%">&nbsp; </TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="3%">&nbsp; </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="66%">&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>adoption of FIN 48</FONT>&nbsp; </TD>
    <TD noWrap align=left width="2%">&nbsp; </TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="3%">&nbsp; </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>(114</FONT> </TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT>&nbsp;
</TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>(114</FONT> </TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="66%" bgColor=#c0c0c0><FONT face=serif size=2>Net income</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>7,327</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>7,327</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="66%"><FONT face=serif size=2>Balance
      at</FONT>&nbsp; </TD>
    <TD noWrap align=left width="2%">&nbsp; </TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="3%">&nbsp; </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="66%">&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>May 5, 2007</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%"><FONT face=serif size=2>13,673</FONT> </TD>
    <TD noWrap align=right width="3%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face=serif size=2>8</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT face=serif size=2>$</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face=serif size=2>137</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face=serif size=2>74,858</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face=serif size=2>143,067</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face=serif size=2>(274</FONT> </TD>
    <TD style="BORDER-BOTTOM: #ffffff 1.5pt solid" noWrap align=left width="1%"><FONT face=serif size=2>)</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face=serif size=2>217,788</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD></TR></TABLE><BR>
<P align=justify><FONT face=serif size=2>See notes to condensed consolidated
financial statements. </FONT></P>
<P align=center><FONT face=serif size=2>5</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=center><B><FONT face=serif size=2>SHOE CARNIVAL,
INC.<BR></FONT></B><B><FONT face=serif size=2>CONDENSED CONSOLIDATED STATEMENTS
OF CASH FLOWS<BR>Unaudited</FONT></B></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="89%">&nbsp; </TD>
    <TD noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=2>Thirteen</FONT></B> </TD>
    <TD noWrap align=center width="1%">&nbsp; </TD>
    <TD noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=2>Thirteen</FONT></B> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%">&nbsp; </TD>
    <TD noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=2>Weeks Ended</FONT></B> </TD>
    <TD noWrap align=center width="1%">&nbsp; </TD>
    <TD noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=2>Weeks Ended</FONT></B> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=2>May 5, 2007</FONT></B> </TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=2>April 29, 2006</FONT></B> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%" bgColor=#c0c0c0><FONT face=serif size=2>Cash flows from operating activities:</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%">&nbsp; &nbsp;<FONT face=serif size=2>Net
      income</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT>&nbsp;
</TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>7,327</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>7,400</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%" bgColor=#c0c0c0>&nbsp; &nbsp;<FONT face=serif size=2>Adjustments to reconcile net income to net</FONT>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%" bgColor=#c0c0c0>&nbsp; &nbsp;
      &nbsp;<FONT face=serif size=2>cash (used in) provided by operating
      activities:</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%">&nbsp; &nbsp; &nbsp;<FONT face=serif size=2>Depreciation and amortization</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>3,876</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>3,567</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%" bgColor=#c0c0c0>&nbsp; &nbsp;
      &nbsp;<FONT face=serif size=2>Stock-based compensation</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>474</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>663</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%">&nbsp; &nbsp; &nbsp;<FONT face=serif size=2>Loss on retirement of assets</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>25</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>86</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%" bgColor=#c0c0c0>&nbsp; &nbsp;
      &nbsp;<FONT face=serif size=2>Deferred income taxes</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(161</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(378</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%">&nbsp; &nbsp; &nbsp;<FONT face=serif size=2>Other</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>(16</FONT> </TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT>&nbsp;
</TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>(396</FONT> </TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT>&nbsp;
  </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%" bgColor=#c0c0c0>&nbsp; &nbsp;
      &nbsp;<FONT face=serif size=2>Changes in operating assets and
      liabilities:</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=serif size=2>Accounts receivable</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>155</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>(916</FONT> </TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT>&nbsp;
  </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%" bgColor=#c0c0c0>&nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp;<FONT face=serif size=2>Merchandise inventories</FONT>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>14,016</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>9,605</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=serif size=2>Accounts payable and accrued liabilities</FONT>&nbsp;
</TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>(31,283</FONT>
    </TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT>&nbsp;
</TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>(17,505</FONT>
    </TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT>&nbsp;
  </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%" bgColor=#c0c0c0>&nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp;<FONT face=serif size=2>Other</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(2,188</FONT> </TD>
    <TD style="BORDER-BOTTOM: #c0c0c0 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>3,390</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=7>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%" bgColor=#c0c0c0><FONT face=serif size=2>Net cash (used in) provided by operating activities</FONT>&nbsp;
</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(7,775</FONT> </TD>
    <TD style="BORDER-BOTTOM: #c0c0c0 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>5,516</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=7>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%" bgColor=#c0c0c0><FONT face=serif size=2>Cash flows from investing activities:</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%">&nbsp; &nbsp;<FONT face=serif size=2>Purchases of property and equipment</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>(5,991</FONT>
</TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT>&nbsp;
</TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>(2,214</FONT>
</TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT>&nbsp;
  </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%" bgColor=#c0c0c0>&nbsp; &nbsp;<FONT face=serif size=2>Proceeds from sale of property and
      equipment</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>144</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>7,200</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%">&nbsp; &nbsp;<FONT face=serif size=2>Other</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>0</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>2</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=7>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%" bgColor=#c0c0c0><FONT face=serif size=2>Net cash (used in) provided by investing activities</FONT>&nbsp;
</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(5,847</FONT> </TD>
    <TD style="BORDER-BOTTOM: #c0c0c0 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>4,988</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=7>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%" bgColor=#c0c0c0><FONT face=serif size=2>Cash flows from financing activities:</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%">&nbsp; &nbsp;<FONT face=serif size=2>Proceeds from issuance of stock</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>431</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>1,130</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%" bgColor=#c0c0c0>&nbsp; &nbsp;<FONT face=serif size=2>Excess tax benefits from stock-based
      compensation</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>291</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>261</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%">&nbsp; &nbsp;<FONT face=serif size=2>Common stock repurchased</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>(646</FONT> </TD>
    <TD style="BORDER-BOTTOM: #ffffff 1pt solid" noWrap align=left width="1%"><FONT face=serif size=2>)</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>(241</FONT> </TD>
    <TD style="BORDER-BOTTOM: #ffffff 1pt solid" noWrap align=left width="1%"><FONT face=serif size=2>)</FONT>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=7>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%" bgColor=#c0c0c0><FONT face=serif size=2>Net cash provided by financing activities</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>76</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>1,150</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=7>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%" bgColor=#c0c0c0><FONT face=serif size=2>Net (decrease) increase in cash and cash equivalents</FONT>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(13,546</FONT> </TD>
    <TD style="BORDER-BOTTOM: #c0c0c0 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>11,654</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%"><FONT face=serif size=2>Cash and cash
      equivalents at beginning of period</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>34,839</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>20,304</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=7>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%" bgColor=#c0c0c0><FONT face=serif size=2>Cash and Cash Equivalents at End of Period</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>21,293</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>31,958</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=7>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%" bgColor=#c0c0c0><FONT face=serif size=2>Supplemental disclosures of cash flow information:</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%">&nbsp; &nbsp;<FONT face=serif size=2>Cash paid during period for interest</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT>&nbsp;
</TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>32</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT>&nbsp;
</TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>31</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%" bgColor=#c0c0c0>&nbsp; &nbsp;<FONT face=serif size=2>Cash paid (received) during period for income
      taxes</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT>&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>471</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT>&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(15</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%">&nbsp; &nbsp;<FONT face=serif size=2>Capital expenditures incurred but not yet paid</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT>&nbsp;
</TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>2,861</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT>&nbsp;
</TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>711</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=7>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%"><FONT face=serif size=2>See notes to
      condensed consolidated financial statements.</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD></TR></TABLE><BR>
<P align=center><FONT face=serif size=2>6</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=center><B><FONT face=serif size=2>SHOE CARNIVAL,
INC.<BR></FONT></B><B><FONT face=serif size=2>NOTES TO CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS<BR></FONT></B><B><FONT face=serif size=2>Unaudited</FONT></B></P>
<P align=justify><B><FONT face=serif size=2>Note 1 - Basis of
Presentation</FONT></B></P>
<P align=justify><FONT face=serif size=2>In our opinion, the accompanying
unaudited condensed consolidated financial statements contain all adjustments
necessary to present fairly our financial position and the results of our
operations and our cash flows for the periods presented. Certain information and
disclosures normally included in notes to consolidated financial statements have
been condensed or omitted according to the rules and regulations of the
Securities and Exchange Commission (the &#147;SEC&#148;), although we believe that the
disclosures are adequate to make the information presented not misleading. The
results of operations for the interim periods are not necessarily indicative of
the results to be expected for the full year. The condensed consolidated
financial statements should be read in conjunction with the audited consolidated
financial statements and the notes thereto contained in our Annual Report on
Form 10-K for the fiscal year ended February 3, 2007.</FONT></P>
<P align=justify><B><FONT face=serif size=2>Note 2 - Net Income Per
Share</FONT></B><FONT face=serif size=2> </FONT></P>
<P align=justify><FONT face=serif size=2>Net income per share of common stock is
based on the weighted average number of shares and common share equivalents
outstanding during the period. The following table presents a reconciliation of
our basic and diluted weighted average common shares outstanding as required by
Statement of Financial Accounting Standards (&#147;SFAS&#148;) No. 128, &#147;Earnings Per
Share&#148;: </FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="88%">&nbsp; </TD>
    <TD noWrap align=center width="3%"><B><FONT face=serif size=2>Thirteen</FONT></B> </TD>
    <TD noWrap align=center width="5%"></TD>
    <TD noWrap align=center width="3%"><B><FONT face=serif size=2>Thirteen</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%">&nbsp; </TD>
    <TD noWrap align=center width="3%"><B><FONT face=serif size=2>Weeks
      Ended</FONT></B> </TD>
    <TD noWrap align=right width="5%"></TD>
    <TD noWrap align=center width="3%"><B><FONT face=serif size=2>Weeks
      Ended</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%"><FONT face=serif size=2>(In
      thousands)</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="3%"><B><FONT face=serif size=2>May 5, 2007</FONT></B> </TD>
    <TD noWrap align=right width="5%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      &nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="3%"><B><FONT face=serif size=2>April 29, 2006</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%" bgColor=#c0c0c0><FONT face=serif size=2>Basic shares</FONT>&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>13,499</FONT> </TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>13,247</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%"><FONT face=serif size=2>Dilutive effect
      of stock-based awards</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>366</FONT> </TD>
    <TD noWrap align=right width="5%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>409</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%" bgColor=#c0c0c0><FONT face=serif size=2>Diluted shares</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>13,865</FONT> </TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>13,656</FONT>
</TD></TR></TABLE><BR>
<P align=justify><FONT face=serif size=2>For the quarters ended May 5, 2007 and
April 29, 2006, there were no anti-dilutive shares. </FONT></P>
<P align=justify><B><FONT face=serif size=2>Note 3 &#150; Recently Issued Accounting
Pronouncements </FONT></B></P>
<P align=justify><FONT face=serif size=2>In July 2006, the Financial Accounting
Standards Board (the &#147;FASB&#148;) issued FASB Interpretation No. 48, &#147;Accounting for
Uncertainty in Income Taxes&#148; (&#147;FIN 48&#148;), an interpretation of FASB No. 109
(&#147;SFAS No. 109&#148;). FIN 48 clarifies the accounting for the uncertainty in income
taxes recognized by prescribing a recognition threshold that a tax position is
required to meet before being recognized in the financial statements.
Additionally, FIN 48 provides guidance on measurement, derecognition,
classification, accounting in interim periods and disclosure requirements for
uncertain tax positions. We adopted the provisions of FIN 48 on February 4,
2007. See Note 5 &#150; &#147;Income Taxes&#148;, in this Quarterly Report on Form 10-Q for
additional information, including the effects of adoption on our consolidated
financial statements. </FONT></P>
<P align=justify><FONT face=serif size=2>In September 2006, the FASB issued SFAS
No. 157, &#147;Fair Value Measurements&#148; (&#147;SFAS No. 157&#148;). SFAS No. 157 defines fair
value, establishes a framework for measuring fair value in generally accepted
accounting principles, and expands disclosures about fair value measurements.
SFAS No. 157 is effective for financial statements issued for fiscal years
beginning after November 15, 2007, and interim periods within those fiscal
years. We do not believe the adoption of SFAS No. 157 will have a material
impact on our consolidated financial statements.</FONT></P>
<P align=center><FONT face=serif size=2>7</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=justify><FONT face=serif size=2>In February 2007, the FASB issued SFAS
No. 159, &#147;The Fair Value Option for Financial Assets and Financial
Liabilities&#151;Including an Amendment of FASB Statement No. 115&#148; (&#147;SFAS No. 159&#148;).
SFAS No. 159 allows companies the choice to measure many financial instruments
and certain other items at fair value. This gives companies the opportunity to
mitigate volatility in reported earnings caused by measuring related assets and
liabilities differently without having to apply complex hedge accounting
provisions. The provisions of SFAS No. 159 will be effective for fiscal years
beginning after November 15, 2007. We are currently evaluating the impact the
adoption of SFAS No. 159 will have on our consolidated financial statements.
</FONT></P>
<P align=justify><B><FONT face=serif size=2>Note 4 - Stock-Based Compensation
</FONT></B></P>
<P align=justify><FONT face=serif size=2><U>Stock Options</U></FONT></P>
<P align=justify><FONT face=serif size=2>The following table summarizes the
stock option transactions for the quarter ended May 5, 2007: </FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="81%">&nbsp; </TD>
    <TD noWrap align=center width="3%">&nbsp; </TD>
    <TD noWrap align=center width="3%">&nbsp; </TD>
    <TD noWrap align=center width="1%">&nbsp; </TD>
    <TD noWrap align=center width="3%">&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="3%"><B><FONT face=serif size=2>Weighted-</FONT></B> </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%">&nbsp; </TD>
    <TD noWrap align=center width="2%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%">&nbsp; </TD>
    <TD noWrap align=center width="3%">&nbsp; </TD>
    <TD noWrap align=center width="3%">&nbsp; </TD>
    <TD noWrap align=center width="1%">&nbsp; </TD>
    <TD noWrap align=center width="3%">&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="3%"><B><FONT face=serif size=2>Average</FONT></B> </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%">&nbsp; </TD>
    <TD noWrap align=center width="2%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%">&nbsp; </TD>
    <TD noWrap align=center width="3%">&nbsp; </TD>
    <TD noWrap align=center width="3%">&nbsp; </TD>
    <TD noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=2>Weighted-</FONT></B> </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="3%"><B><FONT face=serif size=2>Remaining</FONT></B> </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="3%" colSpan=2><B><FONT face=serif size=2>Aggregate</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%">&nbsp; </TD>
    <TD noWrap align=center width="3%"><B><FONT face=serif size=2>Number
      of</FONT></B> </TD>
    <TD noWrap align=center width="3%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=2>Average</FONT></B> </TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD noWrap align=center width="3%"><B><FONT face=serif size=2>Contractual</FONT></B> </TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD noWrap align=center width="3%" colSpan=2><B><FONT face=serif size=2>Intrinsic Value</FONT></B> </TD></TR>
  <TR>
    <TD noWrap align=left width="81%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="3%"><B><FONT size=2>Shares</FONT></B>&nbsp;</TD>
    <TD noWrap align=center width="3%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><B><FONT size=2>Exercise&nbsp;Price</FONT></B> </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="3%"><B><FONT size=2>Term&nbsp;(Years)</FONT></B> </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="3%" colSpan=2><B><FONT size=2>(in thousands)</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%" bgColor=#c0c0c0><FONT face=serif size=2>Outstanding at February 3, 2007</FONT>&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>652,946</FONT> </TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp;$</FONT> </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>12.51</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%">&nbsp; &nbsp;<FONT face=serif size=2>Forfeited or expired</FONT>&nbsp; </TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>(1,001</FONT>
</TD>
    <TD noWrap align=left width="3%"><FONT face=serif size=2>)</FONT>&nbsp;
</TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>16.10</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%">&nbsp; </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="2%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%" bgColor=#c0c0c0>&nbsp; &nbsp;<FONT face=serif size=2>Exercised</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(25,855</FONT> </TD>
    <TD style="BORDER-BOTTOM: #c0c0c0 1pt solid" noWrap align=left width="3%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>14.24</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%"><FONT face=serif size=2>Outstanding at
      May 5, 2007</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face=serif size=2>626,090</FONT> </TD>
    <TD noWrap align=left width="3%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face=serif size=2>&nbsp;$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face=serif size=2>12.44</FONT> </TD>
    <TD noWrap align=right width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face=serif size=2>4.43</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face=serif size=2>&nbsp;$</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%"><FONT face=serif size=2>11,109</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%" bgColor=#c0c0c0><FONT face=serif size=2>Options outstanding at May 5, 2007, net of</FONT>&nbsp; </TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%" bgColor=#c0c0c0>&nbsp; &nbsp;<FONT face=serif size=2>estimated forfeitures</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>623,346</FONT> </TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp;$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>12.44</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>4.41</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp;$</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>11,060</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%"><FONT face=serif size=2>Exercisable at
      May 5, 2007</FONT>&nbsp; </TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>606,087</FONT>
    </TD>
    <TD noWrap align=left width="3%">&nbsp; </TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>&nbsp;$</FONT>
</TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>12.45</FONT> </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>4.33</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>&nbsp;$</FONT>&nbsp; </TD>
    <TD noWrap align=right width="2%"><FONT face=serif size=2>10,748</FONT>
  </TD></TR></TABLE><BR>
<P align=justify><FONT face=serif size=2>The following table summarizes
information regarding outstanding and exercisable options at May 5, 2007:
</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="5%">&nbsp; </TD>
    <TD noWrap align=center width="14%">&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="47%" colSpan=6><B><FONT face=serif size=2>Options Outstand</FONT></B><B><FONT face=serif size=2>ing</FONT></B> </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="31%" colSpan=4><B><FONT face=serif size=2>Options Exercisable</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="5%">&nbsp; </TD>
    <TD noWrap align=center width="14%">&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="15%"><B><FONT face=serif size=2>Number</FONT></B> </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="15%"><B><FONT face=serif size=2>Weighted</FONT></B> </TD>
    <TD align=center width="1%"></TD>
    <TD align=center width="15%" colSpan=2><B><FONT face=serif size=2>Weighted</FONT></B> </TD>
    <TD align=center width="1%"></TD>
    <TD noWrap align=center width="15%"><B><FONT face=serif size=2>Number</FONT></B> </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="15%" colSpan=2><B><FONT face=serif size=2>Weighted</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="19%" colSpan=2><B><FONT face=serif size=2>Range of</FONT></B> </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="15%"><B><FONT face=serif size=2>of
      Options</FONT></B> </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="15%"><B><FONT face=serif size=2>Average</FONT></B> </TD>
    <TD align=center width="1%"></TD>
    <TD align=center width="15%" colSpan=2><B><FONT face=serif size=2>Average</FONT></B> </TD>
    <TD align=center width="1%"></TD>
    <TD noWrap align=center width="15%"><B><FONT face=serif size=2>of
      Options</FONT></B> </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="15%" colSpan=2><B><FONT face=serif size=2>Average</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="19%" colSpan=2><B><FONT face=serif size=2>Exercise Price</FONT></B> </TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="15%"><B><FONT face=serif size=2>Outstanding</FONT></B> </TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="15%"><B><FONT face=serif size=2>Remaining Life</FONT></B> </TD>
    <TD align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=center width="15%" colSpan=2><B><FONT face=serif size=2>Exercise Price</FONT></B> </TD>
    <TD align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="15%"><B><FONT face=serif size=2>Exercisable</FONT></B> </TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="15%" colSpan=2><B><FONT face=serif size=2>Exercise Price</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="5%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=center width="14%" bgColor=#c0c0c0><FONT face=serif size=2>4.38 &#150; 5.75</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="15%" bgColor=#c0c0c0><FONT face=serif size=2>62,662</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=center width="15%" bgColor=#c0c0c0><FONT face=serif size=2>3.57</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="8%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="7%" bgColor=#c0c0c0><FONT face=serif size=2>4.48</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="15%" bgColor=#c0c0c0><FONT face=serif size=2>62,662</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=center width="8%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT>&nbsp; </TD>
    <TD noWrap align=right width="7%" bgColor=#c0c0c0><FONT face=serif size=2>4.48</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="5%"><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=center width="14%"><FONT face=serif size=2>&nbsp; 8.56 &#150;
      11.13</FONT> </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="15%"><FONT face=serif size=2>176,125</FONT>
    </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=center width="15%"><FONT face=serif size=2>2.00</FONT>
</TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=center width="8%"><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="7%"><FONT face=serif size=2>10.44</FONT> </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="15%"><FONT face=serif size=2>176,125</FONT>
    </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=center width="8%"><FONT face=serif size=2>$</FONT>&nbsp;
    </TD>
    <TD noWrap align=right width="7%"><FONT face=serif size=2>10.44</FONT>
  </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="5%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=center width="14%" bgColor=#c0c0c0><FONT face=serif size=2>11.88 &#150; 12.67</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="15%" bgColor=#c0c0c0><FONT face=serif size=2>201,835</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="15%" bgColor=#c0c0c0><FONT face=serif size=2>6.07</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="8%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="7%" bgColor=#c0c0c0><FONT face=serif size=2>12.57</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="15%" bgColor=#c0c0c0><FONT face=serif size=2>182,666</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="8%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT>&nbsp; </TD>
    <TD noWrap align=right width="7%" bgColor=#c0c0c0><FONT face=serif size=2>12.62</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="5%"><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=center width="14%"><FONT face=serif size=2>13.87 &#150;
      17.12</FONT> </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="15%"><FONT face=serif size=2>185,468</FONT>
    </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=center width="15%"><FONT face=serif size=2>5.23</FONT>
</TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=center width="8%"><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="7%"><FONT face=serif size=2>16.88</FONT> </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="15%"><FONT face=serif size=2>184,634</FONT>
    </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=center width="8%"><FONT face=serif size=2>$</FONT>&nbsp;
    </TD>
    <TD noWrap align=right width="7%"><FONT face=serif size=2>16.89</FONT>
  </TD></TR></TABLE><BR>
<P align=justify><FONT face=serif size=2>The total intrinsic value, defined as
the difference between the market value at exercise and the grant price, of
stock options exercised during the first quarter of fiscal 2007 and 2006 was
$504,000 and $901,000, respectively. The total cash received from these stock
option exercises during the first quarter of fiscal 2007 and 2006 was $368,000
and $1.1 million, respectively. The recorded excess tax benefits associated with
these stock option exercises during the first quarter of fiscal 2007 and 2006
was $180,000 and $338,000, respectively.</FONT></P>
<P align=justify><FONT face=serif size=2>During the first quarter of fiscal 2007
and 2006, we recognized approximately $22,000 and $106,000 in stock-based
compensation expense for non-vested stock options before the recognized tax
benefit of $8,600 and $40,000, respectively.</FONT></P>
<P align=justify><FONT face=serif size=2>As of May 5, 2007, there was
approximately $48,000 of unrecognized stock-based compensation expense remaining
related to non-vested stock options. This expense is expected to be recognized
over a period of less than one year. </FONT></P>
<P align=center><FONT face=serif size=2>8</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=justify><U><FONT face=serif size=2>Restricted Stock
Awards</FONT></U><FONT face=serif size=2> </FONT></P>
<P align=justify><FONT face=serif size=2>The following table summarizes the
restricted share transactions for the quarter ended May 5, 2007: </FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="87%">&nbsp; </TD>
    <TD noWrap align=center width="3%"></TD>
    <TD noWrap align=center width="5%">&nbsp; </TD>
    <TD noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=2>Weighted-</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="87%">&nbsp; </TD>
    <TD noWrap align=center width="3%"><B><FONT face=serif size=2>Number
      of</FONT></B> </TD>
    <TD noWrap align=center width="5%">&nbsp; </TD>
    <TD noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=2>Average Grant</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="87%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="3%"><B><FONT face=serif size=2>Shares</FONT></B> </TD>
    <TD noWrap align=center width="5%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=2>Date Fair Value</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="87%" bgColor=#c0c0c0><FONT face=serif size=2>Non-vested at February 3, 2007</FONT>&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>79,517</FONT> </TD>
    <TD noWrap align=left width="5%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp;$</FONT>&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>21.58</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="87%">&nbsp; &nbsp;<FONT face=serif size=2>Granted</FONT>&nbsp; </TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>98,000</FONT>
</TD>
    <TD noWrap align=left width="5%">&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>29.42</FONT>
  </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="87%" bgColor=#c0c0c0>&nbsp; &nbsp;<FONT face=serif size=2>Forfeited</FONT>&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(834</FONT> </TD>
    <TD noWrap align=left width="5%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>26.84</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="87%">&nbsp; &nbsp;<FONT face=serif size=2>Vested</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>(41,228</FONT> </TD>
    <TD style="BORDER-BOTTOM: #ffffff 1pt solid" noWrap align=left width="5%"><FONT face=serif size=2>)</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>19.84</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="87%" bgColor=#c0c0c0><FONT face=serif size=2>Non-vested at May 5, 2007</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>135,455</FONT> </TD>
    <TD noWrap align=left width="5%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp;$</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>27.75</FONT>
</TD></TR></TABLE><BR>
<P align=justify><FONT face=serif size=2>The total fair value at grant date of
previously non-vested stock awards that vested during the first quarter of
fiscal 2007 was $831,000. The weighted-average grant date fair value of stock
awards granted during the first quarter of fiscal 2007 and 2006 was $29.42 and
$22.99, respectively.</FONT></P>
<P align=justify><FONT face=serif size=2>During the first quarter of fiscal 2007
and 2006, we recognized approximately $441,000 and $547,000 in stock-based
compensation expense for restricted stock awards before the recognized tax
benefit of $168,000 and $210,000, respectively. As of May 5, 2007, there was
approximately $3.2 million of unrecognized compensation expense remaining
related to non-vested stock awards. This expense is expected to be recognized
over a weighted-average period of 2.02 years. The majority of the non-vested
restricted stock are performance-based awards and the weighted-average period
incorporates the current assumptions of the estimated requisite period required
to achieve the designated performance conditions. </FONT></P>
<P align=justify><U><FONT face=serif size=2>Employee Stock Purchase
Plan</FONT></U><FONT face=serif size=2> </FONT></P>
<P align=justify><FONT face=serif size=2>During the first quarter of fiscal
2007, we recognized approximately $11,000 in stock-based compensation expense
for the employee stock purchase plan before the recognized income tax benefit of
$4,000 representative of the 15% discount employees are provided for purchases
under the employee stock purchase plan. </FONT></P>
<P align=justify><B><FONT face=serif size=2>Note 5 &#150; Income Taxes
</FONT></B></P>
<P align=justify><FONT face=serif size=2>On February 4, 2007, we adopted the
provisions of FIN 48. This interpretation of SFAS No. 109 clarifies the
accounting for the uncertainty in income taxes recognized by prescribing a
recognition threshold that a tax position is required to meet before being
recognized in the financial statements. FIN 48 also provides guidance on
derecognition of tax benefits, classification on the balance sheet, interest and
penalties, accounting in interim periods, disclosure, and transition. Our
evaluation under FIN 48 was performed for the tax years encompassing our fiscal
years 1999 through 2005, the tax years which remain subject to examination by
major tax jurisdictions as of May 5, 2007. Prior to the adoption of FIN 48, we
recorded interest expense related to uncertain tax positions as a component of
interest expense. Upon adoption of FIN 48 we changed this policy to record such
items as a component of income tax expense in the consolidated statement of
income. Penalties have historically been included as a component of income tax
expense and will continue be recorded in this manner with the adoption of FIN
48. </FONT></P>
<P align=justify><FONT face=serif size=2>The total effect of the adoption on our
consolidated balance sheet as of February 4, 2007 was a $361,000 increase in tax
liability including penalties and interest and a $247,000 increase in deferred
income tax benefits; resulting in a $114,000 reduction to retained earnings.
After recording these entries, we had a liability for unrecognized tax benefits,
including interest and penalties, of $775,000.</FONT></P>
<P align=justify><FONT face=serif size=2>For the first quarter of fiscal 2007,
we recorded $9,000 of interest expense related to uncertain tax positions. As of
May 5, 2007, our liability for unrecognized tax positions was $566,000 and
accrued interest and penalties associated with this liability were $218,000;
resulting in a total liability for unrecognized tax benefits of $784,000. This
amount was classified as an Other liability on our consolidated balance sheet as
of May 5, 2007. If our uncertain tax positions become recognizable, the amount
would reduce our effective tax rate. We do not expect the amount of the
liability for unrecognized tax benefits, excluding interest and penalties, will
change significantly within the next 12 months.</FONT></P>
<P align=center><FONT face=serif size=2>9</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=justify><FONT face=serif size=2>The effective income tax rate for the
first quarter of fiscal 2007 decreased to 32.0% from 38.3% for the same time
period in 2006. The reduction in the effective income tax rate was primarily due
to a reduction in state income taxes from state incentives related to the
investment in our new distribution center.</FONT></P>
<P align=justify><B><FONT face=serif size=2>Note 6 &#150; Stock Repurchase
Program</FONT></B></P>
<P align=justify><FONT face=serif size=2>In fiscal 2006, our Board of Directors
authorized a $50.0 million stock buy-back program, which will terminate upon the
earlier of the repurchase of the maximum amount or December 31, 2008. During the
first quarter of fiscal 2007, we repurchased 10,000 shares of our outstanding
common stock at a cost of $295,000 under this program. As of May 5, 2007, the
amount that remained available under the existing repurchase authorization was
$49.7 million. Subsequent to May 5, 2007, through the date of this report, we
purchased an additional 662,000 shares of our outstanding common stock at a cost
of $18.9 million. All repurchases under this program have been made utilizing
available cash on hand.&nbsp;&nbsp;</FONT></P>
<P align=center><FONT face=serif size=2>10</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE><BR>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="1%"><B><FONT face=serif size=2>ITEM
      2.</FONT></B>&nbsp; </TD>
    <TD noWrap align=left width="2%">&nbsp;&nbsp;&nbsp; </TD>
    <TD noWrap align=left width="96%"><B><FONT face=serif size=2>MANAGEMENT'S
      DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
      OPERATIONS</FONT></B>&nbsp; </TD></TR></TABLE><BR>
<P align=justify><B><FONT face=serif size=2>Factors That May Effect Future
Results</FONT></B><FONT face=serif size=2> </FONT></P>
<P align=justify><FONT face=serif size=2>This Quarterly Report on Form 10-Q
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 United States in which our
stores are located; changes in the overall retail environment and more
specifically in the apparel and footwear retail sectors; 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;
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 impact of hurricanes or
other 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 availability of desirable store locations at acceptable lease
terms and our ability to open new stores in a timely and profitable manner;
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 People&#146;s Republic of
China, a major manufacturer of footwear; and the continued favorable trade
relations between the United States and China and other countries which are the
major manufacturers of footwear. For a more detailed discussion of certain risk
factors, see the &#147;Risk Factors&#148; section of our Annual Report on Form 10-K for
the fiscal year ended February 3, 2007. </FONT></P>
<P align=justify><B><FONT face=serif size=2>General </FONT></B></P>
<P align=justify><FONT face=serif size=2>Management&#146;s Discussion and Analysis of
Financial Condition and Results of Operations is intended to provide information
to assist the reader in better understanding and evaluating our financial
condition and results of operations. We encourage you to read this in
conjunction with our condensed consolidated financial statements and the notes
to those statements included in PART I, ITEM 1 FINANCIAL STATEMENTS of this
Quarterly Report on Form 10-Q, as well as our Annual Report on Form 10-K for the
fiscal year ended February 3, 2007 as filed with the SEC. </FONT></P>
<P align=justify><B><FONT face=serif size=2>Overview</FONT></B><FONT face=serif size=2> </FONT></P>
<P align=justify><FONT face=serif size=2>Shoe Carnival, Inc. is one of the
nation's largest family footwear retailers. As of May 5, 2007, we operated 278
stores in 25 states in the Midwest, South and Southeast regions of the United
States. We offer a distinctive shopping experience, a broad merchandise
assortment and value to our customers while maintaining an efficient store level
cost structure.</FONT></P>
<P align=justify><FONT face=serif size=2>Our stores combine competitive pricing
with a highly promotional, in-store marketing effort that encourages customer
participation and creates a fun and exciting shopping experience. We believe
this highly promotional atmosphere results in various competitive advantages,
including increased multiple unit sales; the building of a loyal, repeat
customer base; the creation of word-of-mouth advertising; and enhanced sell
through of in-season goods. Our objective is to be the destination
store-of-choice for a wide range of consumers seeking moderately priced, current
season name brand and private label footwear. Our product assortment includes
dress and casual shoes, sandals, boots and a wide assortment of athletic shoes
for the entire family. We believe that by offering a wide selection of both
athletic and non-athletic footwear, we are able to reduce our exposure to shifts
in fashion preferences between those categories. Our ability to identify and
react to fashion changes is a key factor in our sales and earnings performance.
</FONT></P>
<P align=justify><FONT face=serif size=2>Our marketing effort targets middle
income, value-conscious consumers seeking name brand footwear for all age
groups. We believe that by offering a wide selection of popular styles of name
brand merchandise at competitive prices, we generate broad customer appeal. Our
cost-efficient store operations and real estate strategy enable us to price
products competitively and earn attractive store level returns. Low labor costs
are achieved by housing merchandise directly on the selling floor in an
open-stock format, enabling customers who choose to serve themselves. This
reduces the staffing required to assist customers and reduces store level labor
costs as a percentage of sales. We locate stores predominantly in strip shopping
centers in order to take advantage of lower occupancy costs and maximize our
exposure to value-oriented shoppers.</FONT></P>
<P align=center><FONT face=serif size=2>11</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=justify><B><FONT face=serif size=2>Critical Accounting Policies
</FONT></B></P>
<P align=justify><FONT face=serif size=2>It is necessary for us to include
certain judgements in our reported financial results. These judgements involve
estimates that are inherently uncertain and actual results could differ
materially from these estimates. The accounting policies that require the more
significant judgements are: </FONT></P>
<P align=justify><I><FONT face=serif size=2>Merchandise
Inventories</FONT></I><FONT face=serif size=2> - Merchandise inventories are
stated at the lower of cost or market using the first-in, first-out (FIFO)
method. In determining market value, we estimate the future sales price of items
of merchandise contained in the inventory as of the balance sheet date. Factors
considered in this determination include, among others, current and recently
recorded sales prices, the length of time product has been held in inventory and
quantities of various product styles contained in inventory. The ultimate amount
realized from the sale of certain product could differ materially from our
estimates. We also estimate a shrinkage reserve for the period between the last
physical count and the balance sheet date. The estimate for the shrinkage
reserve can be affected by changes in merchandise mix and changes in actual
shrinkage trends. </FONT></P>
<P align=justify><I><FONT face=serif size=2>Valuation of Long-Lived
Assets</FONT></I><FONT face=serif size=2> - We review long-lived assets whenever
events or circumstances indicate the carrying value of an asset may not be
recoverable and annually when no such event has occurred. We evaluate the
ongoing value of assets associated with retail stores that have been open longer
than one year. When events such as these occur, the assets subject to impairment
are adjusted to estimated fair value and, if applicable, an impairment loss is
recorded in selling, general and administrative expenses. Our assumptions and
estimates used in the evaluation of impairment, including current and future
economic trends for stores, are subject to a high degree of judgement and if
actual results or market conditions differ from those anticipated, additional
losses may be recorded. </FONT></P>
<P align=justify><I><FONT face=serif size=2>Income Taxes</FONT></I><FONT face=serif size=2> - We calculate income taxes in accordance with SFAS No. 109
and account for uncertain tax positions in accordance with FIN 48. Under SFAS
No. 109, deferred tax assets and liabilities are recognized based on the
difference between the consolidated financial statement carrying amounts of
existing assets and liabilities and their respective tax basis. Deferred tax
assets and liabilities are measured using the estimated tax rates in effect in
the years when those temporary differences are expected to reverse. Under FIN
48, we are required to make many subjective assumptions and judgments regarding
our income tax exposures. Interpretations of and guidance surrounding income tax
laws and regulations are often complex, ambiguous and change over time. As such,
changes in our subjective assumptions and judgments can materially affect
amounts recognized in the consolidated financial statements. See our Notes to
Condensed Consolidated Financial Statements, Note 5 &#150; &#147;Income Taxes&#148; included in
PART I, ITEM 1 FINANCIAL STATEMENTS of this Quarterly Report on Form 10-Q for
additional details on our uncertain tax positions.</FONT></P>
<P align=justify><B><FONT face=serif size=2>Results of
Operations</FONT></B><FONT face=serif size=2> </FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="10%">&nbsp; </TD>
    <TD noWrap align=center width="2%"></TD>
    <TD noWrap align=center width="11%">&nbsp; </TD>
    <TD noWrap align=center width="2%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="20%" colSpan=3><B><FONT face=serif size=2>Number of Stores</FONT></B>&nbsp; </TD>
    <TD noWrap align=center width="2%"></TD>
    <TD noWrap align=center width="9%">&nbsp; </TD>
    <TD noWrap align=center width="2%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="24%" colSpan=3><B><FONT face=serif size=2>Store Square Footage</FONT></B> </TD>
    <TD noWrap align=center width="2%"></TD>
    <TD noWrap align=center width="15%"><B><FONT face=serif size=2>Comparable</FONT></B> </TD>
    <TD noWrap align=center width="1%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="10%">&nbsp; </TD>
    <TD noWrap align=center width="2%"></TD>
    <TD noWrap align=center width="11%">&nbsp; </TD>
    <TD noWrap align=center width="2%"></TD>
    <TD noWrap align=center width="8%">&nbsp; </TD>
    <TD noWrap align=center width="2%"></TD>
    <TD noWrap align=center width="10%">&nbsp; </TD>
    <TD noWrap align=center width="2%"></TD>
    <TD noWrap align=center width="9%">&nbsp; </TD>
    <TD noWrap align=center width="2%"></TD>
    <TD noWrap align=center width="11%">&nbsp; </TD>
    <TD noWrap align=center width="2%"></TD>
    <TD noWrap align=center width="11%">&nbsp; </TD>
    <TD noWrap align=center width="2%"></TD>
    <TD noWrap align=center width="15%"><B><FONT face=serif size=2>Store
      Sales</FONT></B> </TD>
    <TD noWrap align=center width="1%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="10%">&nbsp; </TD>
    <TD noWrap align=center width="2%"></TD>
    <TD noWrap align=center width="11%"><B><FONT face=serif size=2>Beginning</FONT></B>&nbsp; </TD>
    <TD noWrap align=center width="2%">&nbsp;</TD>
    <TD noWrap align=center width="8%">&nbsp; </TD>
    <TD noWrap align=center width="2%">&nbsp;</TD>
    <TD noWrap align=center width="10%">&nbsp; </TD>
    <TD noWrap align=center width="2%">&nbsp;</TD>
    <TD noWrap align=center width="9%"><B><FONT face=serif size=2>End
      of</FONT></B>&nbsp; </TD>
    <TD noWrap align=center width="2%">&nbsp;</TD>
    <TD noWrap align=center width="11%"><B><FONT face=serif size=2>Net</FONT></B>&nbsp; </TD>
    <TD noWrap align=center width="2%"></TD>
    <TD noWrap align=center width="11%"><B><FONT face=serif size=2>End</FONT></B>&nbsp; </TD>
    <TD noWrap align=center width="2%">&nbsp;</TD>
    <TD noWrap align=center width="15%"><B><FONT face=serif size=2>(Decrease)</FONT></B> </TD>
    <TD noWrap align=center width="1%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="10%"><FONT size=+0><B><FONT face=serif size=2>Quarter
      Ended</FONT></B> </FONT></TD>
    <TD noWrap align=center width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="11%"><FONT size=+0><B><FONT face=serif size=2>Of
      Period</FONT></B>&nbsp; </FONT></TD>
    <TD noWrap align=center width="2%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="8%"><FONT size=+0><B><FONT face=serif size=2>Opened</FONT></B>&nbsp; </FONT></TD>
    <TD noWrap align=center width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="10%"><FONT size=+0><B><FONT face=serif size=2>Closed</FONT></B>&nbsp; </FONT></TD>
    <TD noWrap align=center width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="9%"><FONT size=+0><B><FONT face=serif size=2>Period</FONT></B>&nbsp; </FONT></TD>
    <TD noWrap align=center width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="11%"><FONT size=+0><B><FONT face=serif size=2>Change</FONT></B>&nbsp; </FONT></TD>
    <TD noWrap align=center width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="11%"><FONT size=+0><B><FONT face=serif size=2>of
      Period</FONT></B>&nbsp; </FONT></TD>
    <TD noWrap align=center width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="15%"><FONT size=+0><B><FONT face=serif size=2>Increase
      </FONT></B><B><FONT face=serif size=1>(1)</FONT></B> </FONT></TD>
    <TD noWrap align=center width="1%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="10%" bgColor=#c0c0c0><FONT face=serif size=2>May 5, 2007</FONT>&nbsp; </TD>
    <TD noWrap align=center width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="11%" bgColor=#c0c0c0><FONT face=serif size=2>271</FONT>&nbsp; </TD>
    <TD noWrap align=center width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="8%" bgColor=#c0c0c0><FONT face=serif size=2>7</FONT>&nbsp; </TD>
    <TD noWrap align=center width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="10%" bgColor=#c0c0c0><FONT face=serif size=2>0</FONT>&nbsp; </TD>
    <TD noWrap align=center width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="9%" bgColor=#c0c0c0><FONT face=serif size=2>278</FONT>&nbsp; </TD>
    <TD noWrap align=center width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="11%" bgColor=#c0c0c0><FONT face=serif size=2>66,000</FONT>&nbsp; </TD>
    <TD noWrap align=center width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="11%" bgColor=#c0c0c0><FONT face=serif size=2>3,128,000</FONT>&nbsp; </TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="15%" bgColor=#c0c0c0><FONT face=serif size=2>(3.7%</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT>&nbsp; </TD></TR>
  <TR>
    <TD width="100%" colSpan=16>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="10%" bgColor=#c0c0c0><FONT face=serif size=2>April 29, 2006</FONT>&nbsp; </TD>
    <TD noWrap align=center width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="11%" bgColor=#c0c0c0><FONT face=serif size=2>263</FONT>&nbsp; </TD>
    <TD noWrap align=center width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="8%" bgColor=#c0c0c0><FONT face=serif size=2>0</FONT>&nbsp; </TD>
    <TD noWrap align=center width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="10%" bgColor=#c0c0c0><FONT face=serif size=2>0</FONT>&nbsp; </TD>
    <TD noWrap align=center width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="9%" bgColor=#c0c0c0><FONT face=serif size=2>263</FONT>&nbsp; </TD>
    <TD noWrap align=center width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="11%" bgColor=#c0c0c0><FONT face=serif size=2>0</FONT>&nbsp; </TD>
    <TD noWrap align=center width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="11%" bgColor=#c0c0c0><FONT face=serif size=2>3,012,000</FONT>&nbsp; </TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="15%" bgColor=#c0c0c0><FONT face=serif size=2>4.1%</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
</TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=1>(1)</FONT></TD>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD vAlign=top width="100%"><FONT face=serif size=2>Comparable store sales
      for the thirteen-week period ended May 5, 2007 are compared to the
      thirteen-week period ended May 6, 2006.</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=3>&nbsp;</TD></TR></TABLE>
<P align=center><FONT face=serif size=2>12</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=justify><FONT face=serif size=2>The following table sets forth our
results of operations expressed as a percentage of net sales for the periods
indicated: </FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="84%">&nbsp; </TD>
    <TD noWrap align=center width="6%" colSpan=2><B><FONT face=serif size=2>Thirteen</FONT></B> &nbsp; </TD>
    <TD noWrap align=center width="2%"></TD>
    <TD noWrap align=center width="7%" colSpan=2><B><FONT face=serif size=2>Thirteen</FONT></B> &nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%">&nbsp; </TD>
    <TD noWrap align=center width="6%" colSpan=2><B><FONT face=serif size=2>Weeks Ended</FONT></B> &nbsp; </TD>
    <TD noWrap align=center width="2%">&nbsp;</TD>
    <TD noWrap align=center width="7%" colSpan=2><B><FONT face=serif size=2>Weeks Ended</FONT></B> &nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="6%" colSpan=2><B><FONT face=serif size=2>May 5, 2007</FONT></B> &nbsp; </TD>
    <TD noWrap align=center width="2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="7%" colSpan=2><B><FONT face=serif size=2>April 29, 2006</FONT></B> &nbsp;
  </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%" bgColor=#c0c0c0><FONT face=serif size=2>Net sales</FONT>&nbsp; </TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>100.0</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>%</FONT>&nbsp; </TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=serif size=2>100.0</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>%</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%"><FONT face=serif size=2>Cost of sales
      (including buying,</FONT>&nbsp; </TD>
    <TD noWrap align=left width="5%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="6%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%">&nbsp; &nbsp;<FONT face=serif size=2>distribution and occupancy costs)</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%"><FONT face=serif size=2>70.0</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="2%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="6%"><FONT face=serif size=2>69.5</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%" bgColor=#c0c0c0><FONT face=serif size=2>Gross profit</FONT>&nbsp; </TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>30.0</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=serif size=2>30.5</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%"><FONT face=serif size=2>Selling, general
      and</FONT>&nbsp; </TD>
    <TD noWrap align=left width="5%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="6%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%">&nbsp; &nbsp;<FONT face=serif size=2>administrative expenses</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%"><FONT face=serif size=2>23.7</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="2%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="6%"><FONT face=serif size=2>23.5</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%" bgColor=#c0c0c0><FONT face=serif size=2>Operating income</FONT>&nbsp; </TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>6.3</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=serif size=2>7.0</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%"><FONT face=serif size=2>Interest
      income</FONT>&nbsp; </TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>(0.2</FONT> </TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT>&nbsp;
</TD>
    <TD noWrap align=right width="2%"></TD>
    <TD noWrap align=right width="6%"><FONT face=serif size=2>(0.1</FONT> </TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>)</FONT>&nbsp;
  </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%" bgColor=#c0c0c0><FONT face=serif size=2>Interest expense</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>0.0</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=serif size=2>0.0</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%"><FONT face=serif size=2>Income before
      income taxes</FONT>&nbsp; </TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>6.5</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="2%"></TD>
    <TD noWrap align=right width="6%"><FONT face=serif size=2>7.1</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%" bgColor=#c0c0c0><FONT face=serif size=2>Income tax expense</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>2.1</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=serif size=2>2.7</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%"><FONT face=serif size=2>Net
      income</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="5%"><FONT face=serif size=2>4.4</FONT> </TD>
    <TD style="BORDER-BOTTOM: #ffffff 2pt solid" noWrap align=left width="1%"><FONT face=serif size=2>%</FONT>&nbsp; </TD>
    <TD noWrap align=right width="2%"></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="6%"><FONT face=serif size=2>4.4</FONT> </TD>
    <TD style="BORDER-BOTTOM: #ffffff 2pt solid" noWrap align=left width="1%"><FONT face=serif size=2>%</FONT>&nbsp; </TD></TR></TABLE><BR>
<P align=justify><I><FONT face=serif size=2>Net Sales</FONT></I><FONT face=serif size=2> </FONT></P>
<P align=justify><FONT face=serif size=2>In the regular course of business, we
offer our customers sales incentives including coupons, discounts, and free
merchandise. Sales are recorded net of such incentives and returns and
allowances. If an incentive involves free merchandise, that merchandise is
recorded as a zero sale and the cost is included in cost of sales. Comparable
store sales for the periods indicated include stores that have been open for 13
full months prior to the beginning of the period, including those stores that
have been relocated or remodeled. Therefore, stores opened or closed during the
periods indicated are not included in comparable store sales.</FONT></P>
<P align=justify><FONT face=serif size=2>It is important to note that the
53</FONT><SUP><FONT face=serif size=2>rd</FONT></SUP><FONT face=serif size=2>
week in fiscal 2006 caused a one-week shift in our fiscal 2007 calendar,
resulting in the end of our fiscal 2007 first quarter being shifted one week
later to May 5 as compared to April 29 for the prior year. This shift will
affect all quarters and if there are seasonal influences near the respective
quarter-end dates, our year-over-year sales comparisons may be impacted. Our
reported quarterly and year-to-date comparable store sales results for fiscal
2007, both in this Quarterly Report on Form 10-Q and in our other public
disclosures, are being adjusted for this shift.</FONT></P>
<P align=justify><FONT face=serif size=2>Net sales decreased $2.8 million to
$165.7 million in the first quarter ended May 5, 2007, a 1.7% decrease over net
sales of $168.5 million in the first quarter ended April 29, 2006. Of this
decrease, $6.0 million was attributable to a 3.7% decrease in comparable store
sales; partially offset by $5.8 million of sales generated by operating 15 more
stores during the first quarter of fiscal 2007 compared to the same period last
year. The net sales decrease also included a decrease of $2.2 million in sales
due to the seasonal differences associated with the fiscal calendar shift noted
above. </FONT></P>
<P align=justify><I><FONT face=serif size=2>Gross Profit</FONT></I><FONT face=serif size=2> </FONT></P>
<P align=justify><FONT face=serif size=2>Gross profit decreased $1.7 million to
$49.8 million in the first quarter of 2007, a 3.2% decrease over gross profit of
$51.5 million for the first quarter of fiscal 2006. Our gross profit margin for
the first quarter of 2007 decreased to 30.0% from 30.5% in the prior year. This
decrease in profit margin resulted from a&nbsp;1.5% increase in buying,
distribution and occupancy costs partially offset by a&nbsp;1.0% increase in the
merchandise margin. The increase in buying, distribution and occupancy costs was
due primarily to an increase in distribution costs and the deleveraging effect
of lower same store sales. Of the increase in distribution costs, approximately
$936,000, or $0.04 per diluted share, was related to converting to a new
distribution center.</FONT></P>
<P align=center><FONT face=serif size=2>13</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=justify><I><FONT face=serif size=2>Selling, General and Administrative
Expenses</FONT></I><FONT face=serif size=2> </FONT></P>
<P align=justify><FONT face=serif size=2>Selling, general and administrative
expenses decreased $309,000 to $39.3 million in the first quarter of fiscal 2007
from $39.6 million in the comparable prior year period.&nbsp;This decrease in
expense was primarily due to a&nbsp;decrease in incentive compensation partially
offset by higher store pre-opening costs.&nbsp;&nbsp;As a percentage of
sales,&nbsp;selling, general and administrative&nbsp;expenses increased to 23.7%
in the first quarter of fiscal 2007 from 23.5% for the comparable period last
year due to the deleveraging effect of lower sales. </FONT></P>
<P align=justify><FONT face=serif size=2>Pre-opening costs for the seven stores
opened in the first quarter of fiscal 2007 were $289,000, or 0.2% of sales. No
stores were opened and no pre-opening costs were incurred in the first quarter
of last year. Pre-opening costs, such as advertising, payroll and supplies,
incurred prior to the opening of a new store are charged to expense in the
period they are incurred. The total amount of pre-opening expense incurred will
vary on a store-by-store basis depending on the specific market and the
promotional activities involved. </FONT></P>
<P align=justify><I><FONT face=serif size=2>Interest (Income) Expense
</FONT></I></P>
<P align=justify><FONT face=serif size=2>We recorded net interest income of
$302,000 in the first quarter of fiscal 2007 as compared to net interest income
of $176,000 in the first quarter of the prior year. The increase in net interest
income was primarily the result of higher average investments during the first
quarter of fiscal 2007 as compared to the prior year. We had no direct
borrowings under our credit facility during the first quarter of fiscal 2007.
</FONT></P>
<P align=justify><I><FONT face=serif size=2>Income Taxes</FONT></I><FONT face=serif size=2> </FONT></P>
<P align=justify><FONT face=serif size=2>The effective income tax rate for the
first quarter of fiscal 2007 decreased to 32.0% from 38.3% for the same time
period in 2006. The reduction in the effective income tax rate was primarily due
to a reduction in state income taxes from state incentives related to the
investment in our new distribution center. The reduction in income tax expense
related to the tax incentives equated to an increase of approximately $0.05 in
earnings per diluted share for the first quarter of fiscal 2007. </FONT></P>
<P align=justify><B><FONT face=serif size=2>Liquidity and Capital
Resources</FONT></B><FONT face=serif size=2> </FONT></P>
<P align=justify><FONT face=serif size=2>Our primary sources of funds are cash
flows from operations and borrowings under our revolving credit facility. Net
cash used in operating activities was $7.8 million for the first quarter of 2007
as compared with net cash provided by operating activities of $5.5 million for
the first quarter of 2006. These amounts reflect the income from operations
adjusted for non-cash items and working capital changes. The $13.3 million
increase in cash used in operating activities between the two respective periods
related primarily to the timing of the payments of accounts payable and accrued
liabilities. </FONT></P>
<P align=justify><FONT face=serif size=2>Working capital increased to $160.5
million at May 5, 2007 from $149.0 million at April 29, 2006. The current ratio
at May 5, 2007 and April 29, 2006 was 4.0 and 3.4, respectively. We had no
long-term debt at May 5, 2007 or April 29, 2006.</FONT></P>
<P align=justify><FONT face=serif size=2>Capital expenditures were $6.0 million
for the first quarter of fiscal 2007. Of this amount, $3.7 million was
incurred&nbsp;for our new distribution center along with $1.5 million for new
stores. The remaining capital expenditures in the first quarter were incurred
for store remodeling and relocation, software and information technology,
in-store graphics and miscellaneous equipment purchases. We did not receive any
lease incentives from landlords during the first quarter. </FONT></P>
<P align=justify><FONT face=serif size=2>We anticipate opening between 23 and 25
new stores and closing three stores during fiscal 2007. During the first
quarter, seven stores were opened versus no openings during the first quarter of
the prior year. No stores were closed during the first quarter of either fiscal
2007 or 2006. We expect to open seven stores in the second quarter of fiscal
2007.</FONT></P>
<P align=justify><FONT face=serif size=2>Remaining capital expenditures are
expected to be $15 million to $16 million in fiscal 2007. Of this amount,
approximately $1 million represents equipment for our new distribution center
and $2 million represents our projected investment in furniture and fixtures for
our new corporate headquarters. We intend to open 23 to 25 stores at an expected
aggregate cost of between $6.7 million and $7.3 million in fiscal 2007. The
balance of capital expenditures are expected to be incurred for store remodels,
visual presentation enhancements and various other store improvements, along
with continued investments in technology and normal asset replacement
activities. The actual amount of cash required for capital expenditures for
store operations depends in part on the number of new stores opened, the amount
of lease incentives, if any, received from landlords and the number of stores
remodeled. The opening of new stores will be dependent upon, among other things,
the availability of desirable locations, the negotiation of acceptable lease
terms and general economic and business conditions affecting consumer spending
in areas we target for expansion.</FONT></P>
<P align=center><FONT face=serif size=2>14</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=justify><FONT face=serif size=2>Our current store prototype uses
between 6,500 and 12,000 square feet depending upon, among other factors, the
location of the store and the population base the store is expected to service.
Capital expenditures for a new store in fiscal 2007 are expected to average
approximately $290,000. The average inventory investment in a new store is
expected to range from $350,000 to $750,000 depending on the size and sales
expectation of the store and the timing of the new store opening. Pre-opening
expenses, such as advertising, salaries and supplies, are expected to average
approximately $49,000 per store in fiscal 2007 with individual stores
experiencing variances in expenditure levels based on the specific market.
</FONT></P>
<P align=justify><FONT face=serif size=2>Our unsecured credit facility provides
for up to $70 million in cash advances on a revolving basis and commercial
letters of credit. Borrowings under the revolving credit line are based on
eligible inventory. The agreement governing the credit facility stipulates a
minimum threshold for net worth, a maximum ratio of funded debt plus rent to
EBITDA plus rent, and a maximum of total distributions for stock repurchases and
cash dividends. We were in compliance with these requirements as of May 5, 2007.
Should a default condition be reported, the lenders may preclude additional
borrowings and call all loans and accrued interest at their discretion. The
credit agreement and amendments thereto are filed as exhibits to (or
incorporated by reference in) this Quarterly Report on Form 10-Q. There were no
borrowings outstanding under the credit facility and letters of credit
outstanding were $7.3 million at May 5, 2007. As of May 5, 2007, $62.7 million
was available to us for additional borrowings under the credit facility. On
December 15, 2006, the credit agreement was amended to extend the maturity date
to April 30, 2010 and to allow us to repurchase shares of our outstanding common
stock in an amount not to exceed $50 million. This amendment follows the Board
of Director&#146;s December 2006 authorization of a $50 million stock buy-back
program, which will terminate on the earlier of the repurchase of the maximum
amount or December 31, 2008. During the first quarter of fiscal 2007, 10,000
shares of common stock were repurchased under this program.&nbsp;Subsequent to
May 5, 2007, through the date of this report, we purchased an additional 662,000
shares of our outstanding common stock at a cost of $18.9 million. All
repurchases under this program have been made utilizing available cash on
hand.</FONT></P>
<P align=justify><FONT face=serif size=2>We anticipate that our existing cash
and cash flow from operations, supplemented by borrowings under our revolving
credit line, will be sufficient to fund our planned store expansion, the capital
investment required for our new corporate headquarters and distribution center,
the repurchase of our common stock under our current repurchase plan and other
operating cash requirements for at least the next 12 months.</FONT></P>
<P align=justify><B><FONT face=serif size=2>Seasonality</FONT></B><FONT face=serif size=2> </FONT></P>
<P align=justify><FONT face=serif size=2>Our quarterly results of operations
have fluctuated and are expected to continue to fluctuate in the future
primarily as a result of seasonal variances and the timing of sales and costs
associated with opening new stores. Non-capital expenditures, such as
advertising and payroll, incurred prior to opening a new store are charged to
expense as incurred. Therefore, our results of operations may be adversely
affected in any quarter in which we incur pre-opening expenses related to the
opening of new stores.</FONT></P>
<P align=justify><FONT face=serif size=2>We have three distinct peak selling
periods: Easter, back-to-school and Christmas. </FONT></P>
<P align=justify><B><FONT face=serif size=2>New Accounting Pronouncements
</FONT></B></P>
<P align=justify><FONT face=serif size=2>Recent accounting pronouncements
applicable to our operations are contained in Note 3 &#150; &#147;Recently Issued
Accounting Pronouncements&#148; contained in the Notes to Condensed Consolidated
Financial Statements included in PART I, ITEM 1 FINANCIAL STATEMENTS of this
Quarterly Report on Form 10-Q. </FONT></P>
<P align=center><FONT face=serif size=2>15</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=justify><B><FONT face=serif size=2>ITEM 3.&nbsp;&nbsp; QUANTITATIVE AND
QUALITATIVE DISCLOSURES ABOUT MARKET RISK </FONT></B></P>
<P align=justify><FONT face=serif size=2>We are exposed to market risk in that
the interest payable under our credit facility is based on variable interest
rates and therefore is affected by changes in market rates. We do not use
interest rate derivative instruments to manage exposure to changes in market
interest rates. We did not incur borrowings against our revolving credit line
during the first quarter of fiscal 2007. </FONT></P>
<P align=justify><B><FONT face=serif size=2>ITEM 4.&nbsp;&nbsp; CONTROLS AND
PROCEDURES </FONT></B></P>
<P align=justify><FONT face=serif size=2>Our Chief Executive Officer and Chief
Financial Officer have concluded, based on their evaluation as of May 5, 2007,
that our disclosure controls and procedures are effective to ensure that
information required to be disclosed by us in the reports filed or submitted by
us under the Securities Exchange Act of 1934, as amended, is recorded,
processed, summarized and reported within the time periods specified in the
Securities and Exchange Commission's rules and forms, and include controls and
procedures designed to ensure that information required to be disclosed by us in
such reports is accumulated and communicated to our management, including the
Chief Executive Officer and Chief Financial Officer, as appropriate to allow
timely decisions regarding required disclosure. </FONT></P>
<P align=justify><FONT face=serif size=2>Management is continuously seeking to
improve the efficiency and effectiveness of our operations and internal
controls. This results in refinements to processes throughout the company. In
the third quarter of 2006, the company began to transition certain store
locations to a new time and attendance payroll system. Additionally, as part of
our continued strategy to grow our store base and increase processing capacity,
we began conversion to our new distribution center in the fourth quarter of
fiscal 2006. We believe the implementation of our new payroll system and launch
of our new distribution center has strengthened the overall system of internal
controls due to enhanced automation and integration of related processes.
Testing of the controls related to these new systems is ongoing and management
will make its evaluation of the effectiveness of these controls pursuant to
final transition of the systems. There have been no other changes in our
internal control over financial reporting that occurred during the first quarter
ended May 5, 2007, that have materially affected, or are reasonably likely to
materially affect, our internal control over financial reporting. </FONT></P>
<P align=center><FONT face=serif size=2>16</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=center><B><FONT face=serif size=2>SHOE CARNIVAL, INC.<BR>PART II -
OTHER INFORMATION</FONT></B><FONT face=serif size=2> </FONT></P>
<P align=justify><B><FONT face=serif size=2>ITEM 1A.&nbsp;&nbsp; RISK FACTORS
</FONT></B></P>
<P align=justify><FONT face=serif size=2>You should carefully consider the risks
and uncertainties we describe both in this Quarterly Report on Form 10-Q and in
the &#147;Risk Factors&#148; section of our Annual Report on Form 10-K for the fiscal year
ended February 3, 2007 before deciding to invest in, or retain, shares of our
common stock. These are not the only risks and uncertainties that we face.
Additional risks and uncertainties that we do not currently know about, we
currently believe are immaterial or we have not predicted may also harm our
business operations or adversely affect us. If any of these risks or
uncertainties actually occur, our business, financial condition, results of
operations or cash flows could be materially adversely affected. There have been
no material changes to the risk factors set forth in our Annual Report on Form
10-K for the fiscal year ended February 3, 2007. </FONT></P>
<P align=justify><B><FONT face=serif size=2>ITEM 2.&nbsp;&nbsp; UNREGISTERED
SALES OF EQUITY SECURITIES AND USE OF PROCEEDS </FONT></B></P>
<P align=center><B><FONT face=serif size=2>Issuer Purchases of Equity
Securities</FONT></B><B><FONT face=serif size=2> </FONT></B></P>
<P align=center>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=justify width="31%">&nbsp; </TD>
    <TD noWrap align=center width="16%">&nbsp; </TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=center width="15%" colSpan=2>&nbsp;</TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=center width="17%"><FONT face=serif size=2><FONT size=3>&nbsp;</FONT><B>Total Number</B></FONT>&nbsp;</TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD noWrap align=center width="17%"><FONT face=serif size=2><FONT size=3>&nbsp;</FONT><B>Approximate</B></FONT>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=justify width="31%">&nbsp; </TD>
    <TD noWrap align=center width="16%">&nbsp;</TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="15%" colSpan=2>&nbsp;</TD>
    <TD noWrap align=center width="1%">&nbsp;</TD>
    <TD noWrap align=center width="17%"><FONT face=serif size=2><FONT size=3>&nbsp;</FONT><B>Of Shares</B></FONT>&nbsp;</TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="17%"><FONT face=serif size=2><FONT size=3>&nbsp;</FONT><B>Dollar Value</B></FONT>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=justify width="31%">&nbsp; </TD>
    <TD noWrap align=center width="16%">&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="15%" colSpan=2>&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="17%"><FONT face=serif size=2><FONT size=3>&nbsp;</FONT><B>Purchased</B></FONT>&nbsp;</TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="17%"><FONT face=serif size=2><FONT size=3>&nbsp;</FONT><B>of Shares</B></FONT>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=justify width="31%">&nbsp; </TD>
    <TD noWrap align=center width="16%">&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="15%" colSpan=2>&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="17%"><FONT face=serif size=2><FONT size=3>&nbsp;</FONT><B>as Part</B></FONT>&nbsp;</TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="17%"><FONT face=serif size=2><FONT size=3>&nbsp;</FONT><B>that May Yet</B></FONT>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=justify width="31%">&nbsp; </TD>
    <TD noWrap align=center width="16%"><FONT face=serif size=2><FONT size=3>&nbsp;</FONT><B>Total Number</B></FONT>&nbsp;</TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="15%" colSpan=2><FONT face=serif size=2><FONT size=3>&nbsp;</FONT><B>Average</B></FONT>&nbsp;</TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="17%"><FONT face=serif size=2><FONT size=3>&nbsp;</FONT><B>of Publicly</B></FONT>&nbsp;</TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="17%"><FONT face=serif size=2><FONT size=3>&nbsp;</FONT><B>Be Purchased</B></FONT>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=justify width="31%">&nbsp; </TD>
    <TD noWrap align=center width="16%"><FONT face=serif size=2><FONT size=3>&nbsp;</FONT><B>of Shares</B></FONT>&nbsp;</TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="15%" colSpan=2><FONT face=serif size=2><FONT size=3>&nbsp;</FONT><B>Price Paid</B></FONT>&nbsp;</TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="17%"><FONT face=serif size=2><FONT size=3>&nbsp;</FONT><B>Announced</B></FONT>&nbsp;</TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="17%"><FONT face=serif size=2><FONT size=3>&nbsp;</FONT><B>Under the</B></FONT>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=justify width="31%"><B><FONT face=serif size=2>Period</FONT></B>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="16%"><FONT face=serif size=2><FONT size=3>&nbsp;</FONT><B>Purchased</B></FONT><SUP><FONT face=serif size=2><B>1</B></FONT></SUP>&nbsp;</TD>
    <TD noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="15%" colSpan=2><FONT face=serif size=2><FONT size=3>&nbsp;</FONT><B>per
      Share</B></FONT>&nbsp;</TD>
    <TD noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="17%"><FONT face=serif size=2><FONT size=3>&nbsp;</FONT><B>Programs</B></FONT><SUP><FONT face=serif size=2><B>2</B></FONT></SUP>&nbsp;</TD>
    <TD noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="17%"><FONT face=serif size=2><FONT size=3>&nbsp;</FONT><B>Programs</B></FONT>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=justify width="31%" bgColor=#c0c0c0><FONT face=serif size=2>February 4, 2007 to March 3, 2007</FONT>&nbsp; </TD>
    <TD noWrap align=right width="16%" bgColor=#c0c0c0><FONT face=serif size=2>0</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="14%" bgColor=#c0c0c0>&nbsp;<FONT size=2>$</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;<FONT size=3>&nbsp;</FONT>0.0</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="17%" bgColor=#c0c0c0><FONT face=serif size=2>0</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="17%" bgColor=#c0c0c0>&nbsp;&nbsp;<FONT face=serif size=2>$50,000,000</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=justify width="31%"><FONT face=serif size=2>March 4, 2007
      to April 7, 2007</FONT>&nbsp; </TD>
    <TD noWrap align=right width="16%"><FONT face=serif size=2>20,554</FONT>
    </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="14%">&nbsp;<FONT face=serif size=2>$
    </FONT></TD>
    <TD noWrap align=right width="1%"><FONT size=2><FONT size=3>&nbsp;</FONT>31.43</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="17%"><FONT face=serif size=2>10,000</FONT>
    </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="17%">&nbsp;&nbsp;<FONT face=serif size=2>$49,705,000</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=justify width="31%" bgColor=#c0c0c0><FONT face=serif size=2>April 8, 2007 to May 5, 2007</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="16%" bgColor=#c0c0c0><FONT face=serif size=2>0</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="14%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2><FONT size=3>&nbsp;</FONT>0.0</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="17%" bgColor=#c0c0c0><FONT face=serif size=2>0</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="17%" bgColor=#c0c0c0>&nbsp;&nbsp;<FONT face=serif size=2>$49,705,000</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=justify width="31%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="16%"><FONT face=serif size=2>20,554</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="15%" colSpan=2>&nbsp; </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="17%"><FONT face=serif size=2>10,000</FONT> </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="17%">&nbsp;&nbsp;
</TD></TR></TABLE>&nbsp;<BR>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT size=2><FONT face=serif size=2>1</FONT></FONT></TD>
    <TD vAlign=top noWrap><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD width="100%"><FONT size=2><FONT face=serif size=2>Of these shares,
      10,554 were delivered to or withheld by us in connection with employee
      payroll tax withholding upon the vesting of certain restricted stock
      awards.</FONT></FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=3><FONT size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT size=2><FONT face=serif size=2>2</FONT></FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"><FONT size=2><FONT face=serif size=2>These shares are
      part of a publicly announced, $50.0 million stock buy-back program that
      our Board of Directors approved in December 2006. The program will
      terminate on the earlier of the repurchase of the maximum amount or
      December 31, 2008.</FONT></FONT></TD></TR></TABLE>
<P align=justify><FONT face=serif size=2><B>ITEM 6.&nbsp;&nbsp; EXHIBITS
</B></FONT><FONT face=serif size=2></FONT></P>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=justify width="1%"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD vAlign=top noWrap align=justify width="1%"><FONT size=2><FONT face=serif size=2>(a)</FONT></FONT></TD>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top noWrap align=justify width="1%"><FONT size=2>&nbsp;</FONT></TD>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top noWrap align=justify width="95%"><FONT size=2><FONT face=serif size=2>Exhibits</FONT>&nbsp; </FONT></TD></TR>
  <TR>
    <TD vAlign=top width="1%"></TD>
    <TD vAlign=top width="99%" colSpan=5><FONT size=2>&nbsp; </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top noWrap align=justify width="1%"><FONT size=2>&nbsp;
    </FONT></TD>
    <TD vAlign=top noWrap align=justify width="1%"><FONT size=2>&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD vAlign=top noWrap align=justify width="1%"><FONT size=2><FONT face=serif size=2>3-A</FONT></FONT></TD>
    <TD vAlign=top noWrap align=justify width="1%"><FONT size=2>&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD vAlign=top align=justify width="95%"><FONT size=2><FONT face=serif size=2>Restated Articles of Incorporation of Registrant (incorporated
      herein by reference from the same exhibit number to the Registrant's
      Annual Report on Form 10-K for the year ended February 2,
      2002)</FONT></FONT></TD></TR>
  <TR>
    <TD vAlign=top width="1%"></TD>
    <TD vAlign=top width="99%" colSpan=5><FONT size=2>&nbsp; </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top noWrap align=justify width="1%"><FONT size=2>&nbsp;
    </FONT></TD>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top noWrap align=justify width="1%"><FONT size=2><FONT face=serif size=2>3-B</FONT></FONT></TD>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top align=justify width="95%"><FONT size=2><FONT face=serif size=2>By-laws of Registrant, as amended to date (incorporated herein by
      reference from the same exhibit number to our Current Report on Form 8-K
      filed on March 19, 2007)</FONT></FONT></TD></TR>
  <TR>
    <TD vAlign=top width="1%"></TD>
    <TD vAlign=top width="99%" colSpan=5><FONT size=2>&nbsp; </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top noWrap align=justify width="1%"><FONT size=2>&nbsp;
    </FONT></TD>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top noWrap align=justify width="1%"><FONT size=2><FONT face=serif size=2>4</FONT></FONT></TD>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top align=justify width="95%"><FONT size=2><FONT face=serif size=2>(i) Amended and Restated Credit Agreement and Promissory Notes
      dated April 16, 1999, between Registrant and Mercantile Bank National
      Association, First Union National Bank and Old National Bank (incorporated
      herein by reference from Exhibit 4(I) to the Registrant's Annual Report on
      Form 10-K for the year ended January 30, 1999)</FONT></FONT></TD></TR>
  <TR>
    <TD vAlign=top width="1%"></TD>
    <TD vAlign=top width="99%" colSpan=5><FONT size=2>&nbsp; </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top noWrap align=justify width="1%"><FONT size=2>&nbsp;
    </FONT></TD>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top noWrap align=justify width="1%"><FONT size=2>&nbsp;
    </FONT></TD>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top align=justify width="95%"><FONT size=2><FONT face=serif size=2>(ii) Amendment to Amended and Restated Credit Agreement and
      Promissory Notes dated March 24, 2000, between Registrant and Mercantile
      Bank National Association, First Union National Bank and Old National Bank
      (incorporated herein by reference from the same exhibit number to the
      Registrant's Annual Report on Form 10-K for the year ended January 29,
      2000)</FONT></FONT></TD></TR></TABLE><BR><BR>
<P align=center><FONT face=serif size=2>17</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE><BR>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=justify width="1%"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=top noWrap align=justify width="1%"><FONT size=2><FONT face=serif size=2>(a)</FONT></FONT></TD>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top noWrap align=justify width="1%"><FONT size=2>&nbsp;</FONT></TD>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top noWrap align=justify width="95%"><FONT size=2><FONT face=serif size=2>Exhibits (continued)</FONT></FONT></TD></TR>
  <TR>
    <TD vAlign=top width="1%"></TD>
    <TD vAlign=top width="99%" colSpan=5><FONT size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top noWrap align=justify width="1%"><FONT size=2>&nbsp;</FONT></TD>
    <TD vAlign=top noWrap align=justify width="1%"><FONT size=2>&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=top noWrap align=justify width="1%"><FONT size=2><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></FONT></TD>
    <TD vAlign=top noWrap align=justify width="1%"><FONT size=2>&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=top align=justify width="95%"><FONT size=2><FONT face=serif size=2>(iii) Second Amendment to Amended and Restated Credit Agreement and
      Promissory Notes dated November 8, 2000, between Registrant and Firstar
      Bank N.A., First Union National Bank, Old National Bank and LaSalle Bank
      National Association (incorporated herein by reference from the same
      exhibit number to the Registrant's Quarterly Report on Form 10-Q for the
      quarter ended October 28, 2000)</FONT></FONT></TD></TR>
  <TR>
    <TD vAlign=top width="1%"></TD>
    <TD vAlign=top width="99%" colSpan=5><FONT size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top noWrap align=justify width="1%"><FONT size=2>&nbsp;</FONT></TD>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top noWrap align=justify width="1%"><FONT size=2><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></FONT></TD>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top align=justify width="95%"><FONT size=2><FONT face=serif size=2>(iv) Third Amendment to Amended and Restated Credit Agreement and
      Promissory Notes dated March 18, 2002, between Registrant and U.S. Bank
      National Association, First Union National Bank, Old National Bank and
      LaSalle Bank National Association (incorporated herein by reference from
      the same exhibit number to the Registrant's Annual Report on Form 10-K for
      the year ended February 2, 2002)</FONT></FONT></TD></TR>
  <TR>
    <TD vAlign=top width="1%"></TD>
    <TD vAlign=top width="99%" colSpan=5><FONT size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top noWrap align=justify width="1%"><FONT size=2>&nbsp;</FONT></TD>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top noWrap align=justify width="1%"><FONT size=2><FONT face=serif size=2></FONT></FONT></TD>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top align=justify width="95%"><FONT size=2><FONT face=serif size=2>(v) Fourth Amendment to Amended and Restated Credit Agreement and
      Promissory Notes dated March 12, 2003, between Registrant and U.S. Bank
      National Association, Wachovia Bank National Association, Old National
      Bank and LaSalle Bank National Association (incorporated herein by
      reference from the same exhibit number to the Registrant's Annual Report
      on Form 10- K for the year ended February 1, 2003)</FONT></FONT></TD></TR>
  <TR>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top noWrap align=justify width="1%">&nbsp;</TD>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top align=justify width="95%">&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top align=justify width="95%"><FONT size=2>(vi) Fifth Amendment
      to Amended and Restated Credit Agreement and Promissory Notes dated April
      5, 2004, between Registrant and U.S. Bank National Association, Wachovia
      Bank National Association, Old National Bank and LaSalle Bank National
      Association (incorporated herein by reference from the same exhibit number
      to the Registrant's Annual Report on Form 10-K for the year ended January
      31, 2004)</FONT></TD></TR>
  <TR>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top align=justify width="95%">&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top align=justify width="95%"><FONT size=2>(vii) Assignment
      Agreement dated June 1, 2004 among LaSalle Bank National Association as
      Assignor, Fifth Third Bank (Southern Indiana) as Assignee, Registrant as
      Borrower and U.S. Bank National Association as Agent relating to the
      Amended and Restated Credit Agreement as further amended (incorporated
      herein by reference from the same exhibit number to the Registrant's
      Quarterly Report on Form 10-Q for the quarter ended May 1,
  2004)</FONT></TD></TR>
  <TR>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top align=justify width="95%">&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top align=justify width="95%"><FONT size=2>(viii) Sixth
      Amendment to Amended and Restated Credit Agreement and Notes dated April
      5, 2005, between Registrant and U.S. Bank National Association, Wachovia
      Bank National Association, Fifth Third Bank (Southern Indiana) and Old
      National Bank (incorporated herein by reference from the same exhibit
      number to the Registrant's Current Report on Form 8-K filed on April 11,
      2005)</FONT></TD></TR>
  <TR>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top align=justify width="95%">&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top align=justify width="95%"><FONT size=2>(ix) Seventh
      Amendment to Amended and Restated Credit Agreement and Notes dated March
      31, 2006, between Registrant and U.S. Bank National Association, Wachovia
      Bank, National Association and Fifth Third Bank (incorporated herein by
      reference from the same exhibit number to the Registrant's Current Report
      on Form 8-K filed on April 4, 2006)</FONT></TD></TR>
  <TR>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top align=justify width="95%">&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top align=justify width="95%"><FONT size=2>(x) Eighth Amendment
      to Amended and Restated Credit Agreement and Notes dated December 15,
      2006, between Registrant and U.S. Bank National Association, Wachovia
      Bank, National Association and Fifth Third Bank (incorporated herein by
      reference from the same exhibit number to the Registrant's Current Report
      on Form 8-K filed on December 11, 2006)</FONT></TD></TR>
  <TR>
    <TD vAlign=top width="1%"></TD>
    <TD vAlign=top width="99%" colSpan=5><FONT size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top noWrap align=justify width="1%"><FONT size=2>&nbsp;</FONT></TD>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top noWrap align=justify width="1%"><FONT size=2>31.1</FONT></TD>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top align=justify width="95%"><FONT size=2>Certification of
      Chief Executive Officer Pursuant to Rule 13a-14(a)/15d-14(a) of the
      Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the
      Sarbanes-Oxley Act of 2002</FONT></TD></TR>
  <TR>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top align=justify width="95%">&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top noWrap align=justify width="1%"><FONT size=2>31.2</FONT></TD>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top align=justify width="95%"><FONT size=2>Certification of
      Chief Financial Officer Pursuant to Rule 13a-14(a)/15d-14(a) of the
      Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the
      Sarbanes-Oxley Act of 2002</FONT></TD></TR></TABLE>
<P align=center><FONT face=serif size=2></FONT>&nbsp;</P>
<P align=center><FONT face=serif size=2>1<FONT size=2>8</FONT></FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE><BR>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=justify width="1%"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD vAlign=top noWrap align=justify width="1%"><FONT size=2><FONT face=serif size=2>(a)</FONT></FONT></TD>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top noWrap align=justify width="1%"><FONT size=2>&nbsp;</FONT></TD>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top noWrap align=justify width="95%"><FONT size=2><FONT face=serif size=2>Exhibits (continued)</FONT></FONT></TD></TR>
  <TR>
    <TD vAlign=top width="1%"></TD>
    <TD vAlign=top width="99%" colSpan=5><FONT size=2>&nbsp; </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top noWrap align=justify width="1%"><FONT size=2>&nbsp;
    </FONT></TD>
    <TD vAlign=top noWrap align=justify width="1%"><FONT size=2>&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD vAlign=top noWrap align=justify width="1%"><FONT size=2><FONT face=serif size=2>32.1</FONT></FONT></TD>
    <TD vAlign=top noWrap align=justify width="1%"><FONT size=2>&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD vAlign=top align=justify width="95%"><FONT size=2><FONT face=serif size=2>Certification of Chief Executive Officer Pursuant to 18 U.S.C.
      Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act
      of 2002</FONT></FONT></TD></TR>
  <TR>
    <TD vAlign=top width="1%"></TD>
    <TD vAlign=top width="99%" colSpan=5><FONT size=2>&nbsp;&nbsp;
  </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top noWrap align=justify width="1%"><FONT size=2>&nbsp;
    </FONT></TD>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top noWrap align=justify width="1%"><FONT size=2><FONT face=serif size=2>32.2</FONT></FONT></TD>
    <TD vAlign=top noWrap align=justify width="1%"></TD>
    <TD vAlign=top align=justify width="95%"><FONT size=2><FONT face=serif size=2>Certification of Chief Financial Officer Pursuant to 18 U.S.C.
      Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act
      of 2002</FONT></FONT></TD></TR></TABLE>
<P align=justify><FONT face=serif size=2></FONT>&nbsp;</P>
<P align=justify>&nbsp;</P>
<P align=center><FONT face=serif size=2>19</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=center><B><FONT face=serif size=2>SHOE CARNIVAL,
INC.<BR></FONT></B><FONT face=serif size=2></FONT><B><FONT face=serif size=2>SIGNATURE</FONT></B><FONT face=serif size=2> </FONT></P>
<P align=justify><FONT face=serif size=2>Pursuant to the requirements of the
Securities Exchange Act of 1934, the registrant has duly caused this report to
be signed, on its behalf by the undersigned thereunto duly authorized.
</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>Date:</FONT>&nbsp; </TD>
    <TD noWrap align=left width="49%"><FONT face=serif size=2>June 14,
      2007</FONT>&nbsp; </TD>
    <TD noWrap align=center width="40%"><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </FONT>SHOE CARNIVAL, INC.</FONT>&nbsp;</TD>
    <TD noWrap align=left width="10%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="49%">&nbsp; </TD>
    <TD noWrap align=center width="40%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      &nbsp;(Registrant)</FONT>&nbsp;</TD>
    <TD noWrap align=left width="10%"></TD></TR>
  <TR>
    <TD width="90%" colSpan=3>&nbsp; </TD>
    <TD width="10%"></TD></TR>
  <TR>
    <TD width="90%" colSpan=3>&nbsp; </TD>
    <TD width="10%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="49%">&nbsp;</TD>
    <TD noWrap align=right width="40%"><FONT face=serif size=2>By:
      </FONT><U><FONT face=serif size=2>/s/ W. Kerry Jackson</FONT></U>&nbsp;
</TD>
    <TD noWrap align=left width="10%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="49%">&nbsp; </TD>
    <TD noWrap align=right width="40%"><FONT face=serif size=2>W. Kerry
      Jackson</FONT>&nbsp; </TD>
    <TD noWrap align=left width="10%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="49%">&nbsp; </TD>
    <TD noWrap align=right width="40%"><FONT face=serif size=2>Executive Vice
      President and</FONT>&nbsp; </TD>
    <TD noWrap align=left width="10%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="49%">&nbsp; </TD>
    <TD noWrap align=right width="40%"><FONT face=serif size=2>Chief Financial
      Officer</FONT>&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp;</TD></TR></TABLE><BR>
<P align=center><FONT face=serif size=2>20</FONT></P>
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<DOCUMENT>
<TYPE>EX-31.1
<SEQUENCE>2
<FILENAME>exhibit31-1.htm
<DESCRIPTION>CERTIFICATION OF CHIEF EXECUTIVE OFFICER
<TEXT>
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<P align=right><B><FONT face=serif size=2>EXHIBIT 31.1</FONT></B><FONT face=serif size=2> </FONT></P>

<P align=center><B><FONT face=serif size=2>SHOE CARNIVAL, INC. <BR></FONT></B><B><FONT face=serif size=2>CERTIFICATION PURSUANT TO RULE 13a-14(a)/15d-14(a) OF THE SECURITIES <BR>EXCHANGE ACT OF 1934, AS ADOPTED PURSUANT TO SECTION 302 OF THE <BR></FONT></B><B><FONT face=serif size=2>SARBANES-OXLEY ACT OF 2002</FONT></B><FONT face=serif size=2> </FONT></P>

<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="TEXT-ALIGN: justify" vAlign=top noWrap align=left width="100%" colSpan=5><FONT face=serif size=2>I, Mark L. Lemond, certify that:</FONT></TD></TR>
<TR>
<TD style="TEXT-ALIGN: justify" vAlign=top align=left width="100%" colSpan=5>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD style="TEXT-ALIGN: justify" vAlign=top noWrap align=left width="1%"><FONT face=serif size=2>1.</FONT></TD>
<TD style="TEXT-ALIGN: justify" vAlign=top noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD vAlign=top noWrap align=left width="98%" colSpan=3><FONT face=serif size=2>I have reviewed this quarterly report on Form 10-Q of Shoe Carnival, Inc.;</FONT></TD></TR>
<TR>
<TD style="TEXT-ALIGN: justify" vAlign=top align=left width="100%" colSpan=5>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD style="TEXT-ALIGN: justify" vAlign=top noWrap align=left width="1%"><FONT face=serif size=2>2.</FONT></TD>
<TD vAlign=top noWrap align=left width="1%"><FONT face=serif size=2></FONT></TD>
<TD vAlign=top align=left width="98%" colSpan=3>
<P align=justify><FONT face=serif size=2>Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top align=left width="100%" colSpan=5>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD vAlign=top noWrap align=left width="1%"><FONT face=serif size=2>3.</FONT></TD>
<TD vAlign=top noWrap align=left width="1%"><FONT face=serif size=2></FONT></TD>
<TD vAlign=top align=left width="98%" colSpan=3>
<P align=justify><FONT face=serif size=2>Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top align=left width="100%" colSpan=5>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD vAlign=top noWrap align=left width="1%"><FONT face=serif size=2>4.</FONT></TD>
<TD vAlign=top noWrap align=left width="1%"><FONT face=serif size=2></FONT></TD>
<TD vAlign=top align=left width="98%" colSpan=3>
<P align=justify><FONT face=serif size=2>The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top align=left width="100%" colSpan=5>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD vAlign=top noWrap align=left width="1%"></TD>
<TD vAlign=top noWrap align=left width="1%">&nbsp; </TD>
<TD vAlign=top noWrap align=left width="1%"><FONT face=serif size=2>(a)</FONT></TD>
<TD vAlign=top align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD vAlign=top align=left width="96%">
<P align=justify><FONT face=serif size=2>Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top align=left width="100%" colSpan=5>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD vAlign=top noWrap align=left width="1%"></TD>
<TD vAlign=top noWrap align=left width="1%">&nbsp; </TD>
<TD vAlign=top noWrap align=left width="1%"><FONT face=serif size=2>(b)</FONT></TD>
<TD vAlign=top align=left width="1%"></TD>
<TD vAlign=top align=left width="96%">
<P align=justify><FONT face=serif size=2>Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top align=left width="100%" colSpan=5>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD vAlign=top noWrap align=left width="1%"></TD>
<TD vAlign=top noWrap align=left width="1%">&nbsp; </TD>
<TD vAlign=top noWrap align=left width="1%"><FONT face=serif size=2>(c)</FONT></TD>
<TD vAlign=top align=left width="1%"></TD>
<TD vAlign=top align=left width="96%">
<P align=justify><FONT face=serif size=2>Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top align=left width="100%" colSpan=5>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD vAlign=top noWrap align=left width="1%"></TD>
<TD vAlign=top noWrap align=left width="1%">&nbsp; </TD>
<TD vAlign=top noWrap align=left width="1%"><FONT face=serif size=2>(d)</FONT></TD>
<TD vAlign=top align=left width="1%"></TD>
<TD vAlign=top align=left width="96%">
<P align=justify><FONT face=serif size=2>Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top align=left width="100%" colSpan=5>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD vAlign=top noWrap align=left width="1%"><FONT face=serif size=2>5.</FONT></TD>
<TD vAlign=top noWrap align=left width="1%"><FONT face=serif size=2></FONT></TD>
<TD vAlign=top align=left width="98%" colSpan=3>
<P align=justify><FONT face=serif size=2>The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top align=left width="100%" colSpan=5>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD vAlign=top noWrap align=left width="1%"></TD>
<TD vAlign=top noWrap align=left width="1%">&nbsp; </TD>
<TD vAlign=top noWrap align=left width="1%"><FONT face=serif size=2>(a)</FONT></TD>
<TD vAlign=top align=left width="1%"></TD>
<TD vAlign=top align=left width="96%">
<P align=justify><FONT face=serif size=2>All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top align=left width="100%" colSpan=5>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD vAlign=top noWrap align=left width="1%"></TD>
<TD vAlign=top noWrap align=left width="1%">&nbsp; </TD>
<TD vAlign=top noWrap align=left width="1%"><FONT face=serif size=2>(b)</FONT></TD>
<TD vAlign=top align=left width="1%"></TD>
<TD vAlign=top align=left width="96%">
<P align=justify><FONT face=serif size=2>Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.</FONT></P>
</TD></TR>
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<BR>
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<TR vAlign=bottom>
<TD noWrap align=left width="1%"><FONT face=serif size=2>Date:</FONT>&nbsp; </TD>
<TD noWrap align=left width="48%"><FONT face=serif size=2>June 14, 2007</FONT>&nbsp; </TD>
<TD noWrap align=right width="40%"><FONT face=serif size=2>By: </FONT><U><FONT face=serif size=2>/s/ Mark L. Lemond</FONT></U>&nbsp; </TD>
<TD noWrap align=right width="10%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=left width="48%">&nbsp; </TD>
<TD noWrap align=right width="40%"><FONT face=serif size=2>Mark L. Lemond</FONT>&nbsp; </TD>
<TD noWrap align=right width="10%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=left width="48%">&nbsp; </TD>
<TD noWrap align=right width="40%"><FONT face=serif size=2>President and</FONT>&nbsp; </TD>
<TD noWrap align=right width="10%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=left width="48%">&nbsp; </TD>
<TD noWrap align=right width="40%"><FONT face=serif size=2>Chief Executive Officer</FONT>&nbsp; </TD>
<TD noWrap align=right width="10%"></TD></TR>
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<DOCUMENT>
<TYPE>EX-31.2
<SEQUENCE>3
<FILENAME>exhibit31-2.htm
<DESCRIPTION>CERTIFICATION OF CHIEF FINANCIAL OFFICER
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<P align=right><B><FONT face=serif size=2>EXHIBIT 31.2</FONT></B><FONT face=serif size=2> </FONT></P>

<P align=center><B><FONT face=serif size=2>SHOE CARNIVAL, INC. <BR></FONT></B><B><FONT face=serif size=2>CERTIFICATION PURSUANT TO RULE 13a-14(a)/15d-14(a) OF THE SECURITIES <BR>EXCHANGE ACT OF 1934, AS ADOPTED PURSUANT TO SECTION 302 OF THE <BR></FONT></B><B><FONT face=serif size=2>SARBANES-OXLEY ACT OF 2002</FONT></B><FONT face=serif size=2> </FONT></P>

<P align=justify>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD style="TEXT-ALIGN: justify" vAlign=top noWrap align=left width="100%" colSpan=5><FONT face=serif size=2>I, W. Kerry Jackson, certify that:</FONT></TD></TR>
<TR>
<TD style="TEXT-ALIGN: justify" vAlign=top align=left width="100%" colSpan=5>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD style="TEXT-ALIGN: justify" vAlign=top noWrap align=left width="1%"><FONT face=serif size=2>1.</FONT></TD>
<TD style="TEXT-ALIGN: justify" vAlign=top noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD vAlign=top noWrap align=left width="98%" colSpan=3><FONT face=serif size=2>I have reviewed this quarterly report on Form 10-Q of Shoe Carnival, Inc.;</FONT></TD></TR>
<TR>
<TD style="TEXT-ALIGN: justify" vAlign=top align=left width="100%" colSpan=5>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD style="TEXT-ALIGN: justify" vAlign=top noWrap align=left width="1%"><FONT face=serif size=2>2.</FONT></TD>
<TD vAlign=top noWrap align=left width="1%"><FONT face=serif size=2></FONT></TD>
<TD vAlign=top align=left width="98%" colSpan=3>
<P align=justify><FONT face=serif size=2>Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top align=left width="100%" colSpan=5>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD vAlign=top noWrap align=left width="1%"><FONT face=serif size=2>3.</FONT></TD>
<TD vAlign=top noWrap align=left width="1%"><FONT face=serif size=2></FONT></TD>
<TD vAlign=top align=left width="98%" colSpan=3>
<P align=justify><FONT face=serif size=2>Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top align=left width="100%" colSpan=5>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD vAlign=top noWrap align=left width="1%"><FONT face=serif size=2>4.</FONT></TD>
<TD vAlign=top noWrap align=left width="1%"><FONT face=serif size=2></FONT></TD>
<TD vAlign=top align=left width="98%" colSpan=3>
<P align=justify><FONT face=serif size=2>The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top align=left width="100%" colSpan=5>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD vAlign=top noWrap align=left width="1%"></TD>
<TD vAlign=top noWrap align=left width="1%">&nbsp; </TD>
<TD vAlign=top noWrap align=left width="1%"><FONT face=serif size=2>(a)</FONT></TD>
<TD vAlign=top align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD vAlign=top align=left width="96%">
<P align=justify><FONT face=serif size=2>Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top align=left width="100%" colSpan=5>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD vAlign=top noWrap align=left width="1%"></TD>
<TD vAlign=top noWrap align=left width="1%">&nbsp; </TD>
<TD vAlign=top noWrap align=left width="1%"><FONT face=serif size=2>(b)</FONT></TD>
<TD vAlign=top align=left width="1%"></TD>
<TD vAlign=top align=left width="96%">
<P align=justify><FONT face=serif size=2>Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top align=left width="100%" colSpan=5>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD vAlign=top noWrap align=left width="1%"></TD>
<TD vAlign=top noWrap align=left width="1%">&nbsp; </TD>
<TD vAlign=top noWrap align=left width="1%"><FONT face=serif size=2>(c)</FONT></TD>
<TD vAlign=top align=left width="1%"></TD>
<TD vAlign=top align=left width="96%">
<P align=justify><FONT face=serif size=2>Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top align=left width="100%" colSpan=5>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD vAlign=top noWrap align=left width="1%"></TD>
<TD vAlign=top noWrap align=left width="1%">&nbsp; </TD>
<TD vAlign=top noWrap align=left width="1%"><FONT face=serif size=2>(d)</FONT></TD>
<TD vAlign=top align=left width="1%"></TD>
<TD vAlign=top align=left width="96%">
<P align=justify><FONT face=serif size=2>Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top align=left width="100%" colSpan=5>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD vAlign=top noWrap align=left width="1%"><FONT face=serif size=2>5.</FONT></TD>
<TD vAlign=top noWrap align=left width="1%"><FONT face=serif size=2></FONT></TD>
<TD vAlign=top align=left width="98%" colSpan=3>
<P align=justify><FONT face=serif size=2>The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top align=left width="100%" colSpan=5>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD vAlign=top noWrap align=left width="1%"></TD>
<TD vAlign=top noWrap align=left width="1%">&nbsp; </TD>
<TD vAlign=top noWrap align=left width="1%"><FONT face=serif size=2>(a)</FONT></TD>
<TD vAlign=top align=left width="1%"></TD>
<TD vAlign=top align=left width="96%">
<P align=justify><FONT face=serif size=2>All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top align=left width="100%" colSpan=5>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD vAlign=top noWrap align=left width="1%"></TD>
<TD vAlign=top noWrap align=left width="1%">&nbsp; </TD>
<TD vAlign=top noWrap align=left width="1%"><FONT face=serif size=2>(b)</FONT></TD>
<TD vAlign=top align=left width="1%"></TD>
<TD vAlign=top align=left width="96%">
<P align=justify><FONT face=serif size=2>Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.</FONT></P>
</TD></TR>
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<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD noWrap align=left width="1%"><FONT face=serif size=2><BR>Date:</FONT>&nbsp; </TD>
<TD noWrap align=left width="48%"><FONT face=serif size=2>June 14, 2007</FONT>&nbsp; </TD>
<TD noWrap align=right width="40%"><FONT face=serif size=2>By: </FONT><U><FONT face=serif size=2>/s/ W. Kerry Jackson</FONT></U>&nbsp; </TD>
<TD noWrap align=right width="10%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=left width="48%">&nbsp; </TD>
<TD noWrap align=right width="40%"><FONT face=serif size=2>W. Kerry Jackson</FONT>&nbsp; </TD>
<TD noWrap align=right width="10%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=left width="48%">&nbsp; </TD>
<TD noWrap align=right width="40%"><FONT face=serif size=2>Executive Vice President and</FONT>&nbsp; </TD>
<TD noWrap align=right width="10%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=left width="48%">&nbsp; </TD>
<TD noWrap align=right width="40%"><FONT face=serif size=2>Chief Financial Officer</FONT>&nbsp; </TD>
<TD noWrap align=right width="10%"></TD></TR>
</TABLE>

<B><FONT face=serif size=2></FONT></B>
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<DOCUMENT>
<TYPE>EX-32.1
<SEQUENCE>4
<FILENAME>exhibit32-1.htm
<DESCRIPTION>CERTIFICATION OF CHIEF EXECUTIVE OFFICER
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<P align=right><B><FONT face=serif size=2>EXHIBIT 32.1 </FONT></B></P>

<P align=center><B><FONT face=serif size=2>CERTIFICATION PURSUANT TO 18 U.S.C. <BR>SECTION 1350, <BR>AS ADOPTED PURSUANT TO SECTION<BR></FONT></B><B><FONT face=serif size=2>906 OF THE SARBANES-OXLEY ACT OF 2002 </FONT></B></P>

<P align=justify><FONT face=serif size=2>In connection with the Quarterly Report of Shoe Carnival, Inc. (the "Company") on Form 10-Q for the period ending May 5, 2007 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Mark L. Lemond, President and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-OxleyAct of 2002, that: </FONT></P>

<TABLE style="text-align: justify" cellSpacing=0 cellPadding=0 border=0>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=2>1.</FONT></TD>
<TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD vAlign=top width="100%"><FONT face=serif size=2>The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and</FONT></TD></TR>
<TR>
<TD vAlign=top width="100%" colSpan=3>&nbsp;</TD></TR>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=2>2.</FONT></TD>
<TD vAlign=top noWrap></TD>
<TD vAlign=top width="100%"><FONT face=serif size=2>The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.</FONT></TD></TR>
</TABLE>

<BR>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD noWrap align=left width="1%"><FONT face=serif size=2>Date:</FONT>&nbsp; </TD>
<TD noWrap align=left width="48%"><FONT face=serif size=2>June 14, 2007</FONT>&nbsp; </TD>
<TD noWrap align=right width="40%"><FONT face=serif size=2>By: </FONT><U><FONT face=serif size=2>/s/ Mark L. Lemond</FONT></U>&nbsp; </TD>
<TD noWrap align=right width="10%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=left width="48%">&nbsp; </TD>
<TD noWrap align=right width="40%"><FONT face=serif size=2>Mark L. Lemond</FONT>&nbsp; </TD>
<TD noWrap align=right width="10%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=left width="48%">&nbsp; </TD>
<TD noWrap align=right width="40%"><FONT face=serif size=2>President and</FONT>&nbsp; </TD>
<TD noWrap align=right width="10%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=left width="48%">&nbsp; </TD>
<TD noWrap align=right width="40%"><FONT face=serif size=2>Chief Executive Officer</FONT>&nbsp; </TD>
<TD noWrap align=right width="10%"></TD></TR>
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<TYPE>EX-32.2
<SEQUENCE>5
<FILENAME>exhibit32-2.htm
<DESCRIPTION>CERTIFICATION OF CHIEF FINANCIAL OFFICER
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<P align=right><B><FONT face=serif size=2>EXHIBIT 32.2 </FONT></B></P>

<P align=center><B><FONT face=serif size=2>CERTIFICATION PURSUANT TO 18 U.S.C. <BR>SECTION 1350, <BR>AS ADOPTED PURSUANT TO SECTION<BR></FONT></B><B><FONT face=serif size=2>906 OF THE SARBANES-OXLEY ACT OF 2002 </FONT></B></P>

<P align=justify><FONT face=serif size=2>In connection with the Quarterly Report of Shoe Carnival, Inc. (the "Company") on Form 10-Q for the period ending May 5, 2007 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I W. Kerry Jackson, Executive Vice President and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-OxleyAct of 2002, that: </FONT></P>

<TABLE style="text-align: justify" cellSpacing=0 cellPadding=0 border=0>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=2>1.</FONT></TD>
<TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD vAlign=top width="100%"><FONT face=serif size=2>The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and</FONT></TD></TR>
<TR>
<TD vAlign=top width="100%" colSpan=3>&nbsp;</TD></TR>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=2>2.</FONT></TD>
<TD vAlign=top noWrap></TD>
<TD vAlign=top width="100%"><FONT face=serif size=2>The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.</FONT></TD></TR>
</TABLE>


<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD noWrap align=left width="1%"><FONT face=serif size=2><BR>Date:</FONT>&nbsp; </TD>
<TD noWrap align=left width="48%"><FONT face=serif size=2>June 14, 2007</FONT>&nbsp; </TD>
<TD noWrap align=right width="40%"><FONT face=serif size=2>By: </FONT><U><FONT face=serif size=2>/s/ W. Kerry Jackson</FONT></U>&nbsp; </TD>
<TD noWrap align=right width="10%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=left width="48%">&nbsp; </TD>
<TD noWrap align=right width="40%"><FONT face=serif size=2>W. Kerry Jackson</FONT>&nbsp; </TD>
<TD noWrap align=right width="10%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=left width="48%">&nbsp; </TD>
<TD noWrap align=right width="40%"><FONT face=serif size=2>Executive Vice President and</FONT>&nbsp; </TD>
<TD noWrap align=right width="10%"></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=left width="48%">&nbsp; </TD>
<TD noWrap align=right width="40%"><FONT face=serif size=2>Chief Financial Officer</FONT>&nbsp; </TD>
<TD noWrap align=right width="10%"></TD></TR>
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