| (Mark One)      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| [X]             | Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|            | For the fiscal year ended: January 29, 2011                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |
| or              |
| [   ] | Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|            | For the transition period from                                                              to                                                             |

| Commission File Number: |        0-21360  |
|-------------------------|----------------------------------------------------|
| Shoe Carnival, Inc.                                    |
|--------------------------------------------------------|
| (Exact name of registrant as specified in its charter) |
| Indiana                                                          |   | 35-1736614                                  |
|------------------------------------------------------------------|--------|---------------------------------------------|
| (State or other jurisdiction of                                  |   | (IRS Employer Identification Number)        |
| incorporation or organization)                                   |   |                                        |
|                                                             |   |                                        |
| 7500 East Columbia Street                                        |   |                                        |
| Evansville, IN                                                   |   | 47715                                       |
| (Address of principal executive offices)                         |   | (Zip code)                                  |
|                                                             |
| (812) 867-6471                                                   |
| (Registrant’s telephone number, including area code)       |
|                                                             |
| Securities registered pursuant to Section 12(b) of the Act:      |
|                                                        |
| Common Stock, $.01 par value                                     |   | The NASDAQ Stock Market LLC                 |
| (Title of Each Class)                                            |   | (Name of Each Exchange on Which Registered) |
|                                                             |   |                                        |
| Securities registered pursuant to Section 12(g) of the Act: None |

| Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definition of "large accelerated filer", "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|             [  ]Large accelerated filer                                                                                                                                                                                      | [X]Accelerated filer | [  ]Non-accelerated filer | [  ]Smaller reporting company |

----

| PART I       |       |                                                                                                                   |       |   |
|--------------|--------------------------------|------------------------------------------------------------------------------------------------------------------------|--------------------------------|--------|
|         |                           |                                                                                                                   |                           |   |
| Item 1.      |                           | Business                                                                                                               |                           | 2      |
| Item 1A.     |                           | Risk Factors                                                                                                           |                           | 8      |
| Item 1B.     |                           | Unresolved Staff Comments                                                                                              |                           | 13     |
| Item 2.      |                           | Properties                                                                                                             |                           | 13     |
| Item 3.      |                           | Legal Proceedings                                                                                                      |                           | 14     |
| Item 4.      |                           | (Removed and Reserved)                                                                                                 |                           | 14     |
|         |                           |                                                                                                                   |                           |   |
| PART II      |                           |                                                                                                                   |                           |   |
|         |                           |                                                                                                                   |                           |   |
| Item 5.      |                           | Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |                           | 15     |
| Item 6.      |                           | Selected Financial Data                                                                                                |                           | 17     |
| Item 7. |                           | Management’s Discussion and Analysis of Financial Condition and Results of Operations                            |                           | 18     |
| Item 7A.     |                           | Quantitative and Qualitative Disclosures About Market Risk                                                             |                           | 26     |
| Item 8.      |                           | Financial Statements and Supplementary Data                                                                            |                           | 26     |
| Item 9.      |                           | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure                                   |                           | 48     |
| Item 9A.     |                           | Controls and Procedures                                                                                                |                           | 48     |
| Item 9B.     |                           | Other Information                                                                                                      |                           | 51     |
|         |                           |                                                                                                                   |                           |   |
| PART III     |                           |                                                                                                                   |                           |   |
|         |                           |                                                                                                                   |                           |   |
| Item 10.     |                           | Directors, Executive Officers and Corporate Governance                                                                 |                           | 51     |
| Item 11.     |                           | Executive Compensation                                                                                                 |                           | 51     |
| Item 12.     |                           | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters                         |                           | 51     |
| Item 13.     |                           | Certain Relationships and Related Transactions, and Director Independence                                              |                           | 51     |
| Item 14.     |                           | Principal Accountant Fees and Services                                                                                 |                           | 51     |
|         |                           |                                                                                                                   |                           |   |
| PART IV      |                           |                                                                                                                   |                           |   |
|         |                           |                                                                                                                   |                           |   |
| Item 15.     |                           | Exhibits and Financial Statement Schedules                                                                             |                           | 52     |

----

----

----

| Fiscal years                     |       | 2010                         |       | 2009                         |       | 2008                         |
|----------------------------------|--------------------------------|------------------------------|--------------------------------|------------------------------|--------------------------------|------------------------------|
| Stores open at beginning of year |                           | 311                          |                           | 304                          |                           | 291                          |
| Opened during year               |                           | 10                           |                           | 16                           |                           | 24                           |
| Closed during year               |                           | 7                            |                           | 9                            |                           | 11                           |
| Stores open at end of year       |                           |      314 |                           |      311 |                           |      304 |
|                             |                           |                         |                           |                         |                           |                         |

----

| Fiscal years                        |       | 2010                              |       | 2009   |          | 2008   |
|-------------------------------------|--------------------------------|-----------------------------------|--------------------------------|--------|-----------------------------------|--------|
| Women’s                       |                           | 26                                | %                              |   | 26                                | %      |   | 26 | % |
| Men’s                         |                           | 16                                |                           |   | 15                                |   |   | 15 |   |
| Children’s (1)                |                           | 17                                |                           |   | 17                                |   |   | 17 |   |
| Athletics (2)                       |                           | 37                                |                           |   | 38                                |   |   | 38 |   |
| Accessories and Miscellaneous Items |                           | 4                                 |                           |   | 4                                 |   |   | 4 |   |
|                                |                           |      100 | %                              |   |      100 | %      |   |      100 | % |
|                                |                           |                              |                           |   |                              |   |   |   |

----

----

| Name               |   |       | Age    |                                              | Position |   |
|--------------------|--------|--------------------------------|--------|-----------------------------------------------------------------------|----------|--------|
| J. Wayne Weaver    |   | 76                             |   | Chairman of the Board and Director                                    |
| Mark L. Lemond     |   | 56                             |   | President, Chief Executive Officer and Director                       |
| Timothy T. Baker   |   | 54                             |   | Executive Vice President - Store Operations                           |
| W. Kerry Jackson   |   | 49                             |   | Executive Vice President - Chief Financial Officer and Treasurer      |
| Clifton E. Sifford |   | 57                             |   | Executive Vice President - General Merchandise Manager                |
| Kathy A. Yearwood  |   | 44                             |   | Senior Vice President – Controller and Chief Accounting Officer |

----

- general economic, industry and weather conditions; 

----

- unemployment trends;  
- energy costs, which affect gasoline and home heating prices;  
- the level of consumer debt;  
- consumer credit availability;  
- real estate values and foreclosure rates;  
- consumer confidence in future economic conditions;  
- interest rates;  
- tax rates and policies; and  
- war, terrorism, other hostilities and security concerns. 

- competition;   
- timing of holidays including sales tax holidays;   
- general regional and national economic conditions;   
- inclement weather;   
- consumer trends, such as less disposable income due to the impact of higher gasoline prices; 

----

- fashion trends;  
- changes in our merchandise mix;   
- our ability to distribute merchandise efficiently to our stores;   
- timing and type of, and customer response to, sales events, promotional activities or other advertising;   
- the effectiveness of our inventory management;  
- new merchandise introductions; and  
- our ability to execute our business strategy effectively. 

- disruptions in the flow of imported goods because of factors such as electricity or raw material shortages, work stoppages, strikes and political unrest;   
- problems with oceanic shipping, including shipping container shortages;   
- economic crises and international disputes;   
- currency exchange rate fluctuations;   
- increases in the cost of purchasing or shipping foreign merchandise resulting from the failure to maintain normal trade relations with source countries;   
- import duties, import quotas and other trade sanctions;   
- increases in shipping rates imposed by the trans-Pacific shipping cartel; and  
- the impact of regulatory changes in the United States and the countries where our manufacturers are located, including but not limited to requirements relating to product safety and testing and environmental requirements. 

----

- our ability to locate suitable store sites and negotiate store leases (for new stores and renewals) on favorable terms;  
- the acceptance of the Shoe Carnival concept in new markets;  
- our ability to provide adequate distribution to support growth;  
- our ability to source sufficient levels of inventory to meet the needs of new stores;  
- particularly in new markets, our ability to open a sufficient number of new stores to provide the critical mass needed for efficient advertising and effective name recognition;  
- the availability of financing for capital expenditures and working capital requirements;  
- our ability to improve costs and timing associated with opening new stores; and  
- the impact of new stores on sales or profitability of existing stores in the same market. 

----

- fashion trends;  
- calendar shifts of holiday or seasonal periods;  
- the effectiveness of our inventory management;  
- weather conditions;  
- timing of opening of new stores;  
- changes in general economic conditions and consumer spending patterns; and   
- actions of competitors or co-tenants. 

----

- operating results failing to meet the expectations of securities analysts or investors in any quarter;  
- downward revisions in securities analysts’ estimates;  
- material announcements by us or our competitors; and  
- the other risk factors cited in this annual report. 

----

| State     | #      |       | State          | #   |
|-----------|--------|--------------------------------|----------------|-----|
| Alabama   | 11     |                           | Mississippi    | 6   |
| Arkansas  | 8      |                           | North Carolina | 17  |
| Arizona   | 2      |                           | North Dakota   | 2   |
| Colorado  | 4      |                           | Nebraska       | 1   |
| Florida   | 21     |                           | Ohio           | 18  |
| Georgia   | 14     |                           | Oklahoma       | 7   |
| Idaho     | 4      |                           | Pennsylvania   | 5   |
| Iowa      | 6      |                           | South Carolina | 11  |
| Illinois  | 27     |                           | South Dakota   | 2   |
| Indiana   | 20     |                           | Tennessee      | 17  |
| Kansas    | 3      |                           | Texas          | 37  |
| Kentucky  | 12     |                           | Utah           | 6   |
| Louisiana | 12     |                           | Virginia       | 9   |
| Michigan  | 5      |                           | Wisconsin      | 2   |
| Missouri  | 20     |                           | West Virginia  | 5   |
|      |   |                           | Total Stores   | 314 |

----

| ITEM 5. |   | MARKET FOR THE REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES |
|---------|--------|------------------------------------------------------------------------------------------------------------------------|

| Fiscal year 2010 |       | High                      |       | Low    |
|------------------|--------------------------------|---------------------------|--------------------------------|--------|
| First Quarter    |                           | $     | 28.75                          |   | $     | 17.27 |
| Second Quarter   |                           |                      | 29.26                          |   |   | 18.02 |
| Third Quarter    |                           |                      | 23.63                          |   |   | 16.24 |
| Fourth Quarter   |                           |                      | 30.09                          |   |   | 22.65 |
|             |                           |                      |                           |   |   |   |
| Fiscal year 2009 |                           |                      |                           |   |   |   |
| First Quarter    |                           | $                         | 12.25                          |   | $ | 6.05 |
| Second Quarter   |                           |                      | 14.18                          |   |   | 9.25 |
| Third Quarter    |                           |                      | 17.38                          |   |   | 11.63 |
| Fourth Quarter   |                           |                      | 21.14                          |   |   | 14.69 |

----

|                                  |                           |         |                           |       |                           |        | Total Number                   |         | Approximate               |
|---------------------------------------|--------------------------------|--------------|--------------------------------|------------|--------------------------------|-------------|--------------------------------|--------------|---------------------------|
|                                  |                           |         |                           |       |                           |        | Of Shares                      |         | Dollar Value              |
|                                  |                           |         |                           |       |                           |        | Purchased                      |         | of Shares                 |
|                                  |                           |         |                           |       |                           |        | as Part                        |         | that May Yet              |
|                                  |                           | Total Number |                           | Average    |                           | of Publicly |                           | Be Purchased |
|                                  |                           | of Shares    |                           | Price Paid |                           | Announced   |                           | Under        |
| Period                                |       | Purchased1   |       | per Share  |       | Programs2   |       | Programs     |
| October 31, 2010 to November 27, 2010 |                           | 0            |                           | $          | 0.00                           |        | 0                              |         | $     | 25,000,000 |
| November 28, 2010 to January 1, 2011  |                           | 13,960       |                           | $          | 27.00                          |        | 0                              |         | $                         | 25,000,000 |
| January 2, 2011 to January 29, 2011   |                           | 0            |                           | $          | 0.00                           |        | 0                              |         | $                         | 25,000,000 |
|                                  |                           | 13,960       |                           |       |                           |        | 0                              |         |                      |   |

| (1)    |                     | Total number of shares purchased represents shares delivered to or withheld by us in connection with employee payroll tax withholding upon the vesting of certain restricted stock awards.        |
|--------|--------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |
| (2)    |      | On August 23, 2010, our Board of Directors authorized a $25 million share repurchase program, which will terminate upon the earlier of the repurchase of the maximum amount or December 31, 2011. |

----

| Fiscal years (1)                                                |       | 2010   |         | 2009   |       | 2008   |         | 2007   |       | 2006   |
|-----------------------------------------------------------------|--------------------------------|--------|----------------------------------|--------|--------------------------------|--------|----------------------------------|--------|--------------------------------|--------|
| Income Statement Data:                                          |                           |   |                             |   |                           |   |                             |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Net Sales                                                       |                           | $      |      739,189 |   |                           | $      |      682,422 |   |                           | $      |      647,572 |   |   | $ |      658,680 |   |   | $ |      681,662 |   |
| Cost of sales (including buying,                                |                           |   |                             |   |                           |   |                             |   |                           |   |   |   |   |   |   |   |   |   |   |   |
|        distribution and occupancy |                           |   |                             |   |                           |   |                             |   |                           |   |   |   |   |   |   |   |   |   |   |   |
|        costs)                     |                           |   | 517,650                          |   |                           |   | 488,816                          |   |                           |   | 473,244 |   |   |   | 472,831 |   |   |   | 482,888 |   |
| Gross Profit                                                    |                           |   | 221,539                          |   |                           |   | 193,606                          |   |                           |   | 174,328 |   |   |   | 185,849 |   |   |   | 198,774 |   |
| Selling, general and                                            |                           |   |                             |   |                           |   |                             |   |                           |   |   |   |   |   |   |   |   |   |   |   |
|        administrative expenses    |                           |   | 179,154                          |   |                           |   | 168,476                          |   |                           |   | 165,953 |   |   |   | 166,717 |   |   |   | 161,144 |   |
| Operating income                                                |                           |   | 42,385                           |   |                           |   | 25,130                           |   |                           |   | 8,375 |   |   |   | 19,132 |   |   |   | 37,630 |   |
| Interest income                                                 |                           |   | (165                             | )      |                           |   | (39                              | )      |                           |   | (148 | ) |   |   | (690 | ) |   |   | (1,235 | ) |
| Interest expense                                                |                           |   | 258                              |   |                           |   | 174                              |   |                           |   | 153 |   |   |   | 264 |   |   |   | 152 |   |
| Income before income taxes                                      |                           |   | 42,292                           |   |                           |   | 24,995                           |   |                           |   | 8,370 |   |   |   | 19,558 |   |   |   | 38,713 |   |
| Income tax expense                                              |                           |   | 15,471                           |   |                           |   | 9,829                            |   |                           |   | 3,051 |   |   |   | 6,751 |   |   |   | 14,949 |   |
| Net income                                                      |                           | $      | 26,821                           |   |                           | $      | 15,166                           |   |                           | $      | 5,319 |   |   | $ | 12,807 |   |   | $ | 23,764 |   |
|                                                            |                           |   |                             |   |                           |   |                             |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Net income per share:                                           |                           |   |                             |   |                           |   |                             |   |                           |   |   |   |   |   |   |   |   |   |   |   |
|        Basic                      |                           | $      | 2.11                             |   |                           | $      | 1.21                             |   |                           | $      | 0.43 |   |   | $ | 0.99 |   |   | $ | 1.78 |   |
|        Diluted                    |                           | $      | 2.05                             |   |                           | $      | 1.20                             |   |                           | $      | 0.43 |   |   | $ | 0.97 |   |   | $ | 1.73 |   |
|                                                            |                           |   |                             |   |                           |   |                             |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Average shares outstanding:                                     |                           |   |                             |   |                           |   |                             |   |                           |   |   |   |   |   |   |   |   |   |   |   |
|        Basic                      |                           |   | 12,724                           |   |                           |   | 12,513                           |   |                           |   | 12,406 |   |   |   | 12,922 |   |   |   | 13,373 |   |
|        Diluted                    |                           |   | 13,060                           |   |                           |   | 12,660                           |   |                           |   | 12,492 |   |   |   | 13,158 |   |   |   | 13,744 |   |
|                                                            |                           |   |                             |   |                           |   |                             |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Selected Operating Data (2):                                    |                           |   |                             |   |                           |   |                             |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Stores open at end of year                                      |                           |   | 314                              |   |                           |   | 311                              |   |                           |   | 304 |   |   |   | 291 |   |   |   | 271 |   |
| Square footage of store space                                   |                           |   |                             |   |                           |   |                             |   |                           |   |   |   |   |   |   |   |   |   |   |   |
|        at year end (000’s)  |                           |   | 3,390                            |   |                           |   | 3,372                            |   |                           |   | 3,335 |   |   |   | 3,238 |   |   |   | 3,062 |   |
| Average sales per store (000’s)                           |                           | $      | 2,384                            |   |                           | $      | 2,219                            |   |                           | $      | 2,206 |   |   | $ | 2,364 |   |   | $ | 2,544 |   |
| Average sales per square foot                                   |                           | $      | 221                              |   |                           | $      | 204                              |   |                           | $      | 198 |   |   | $ | 209 |   |   | $ | 223 |   |
| Comparable store sales (3)                                      |                           |   | 8.2                              | %      |                           |   | 3.5                              | %      |                           |   | (4.6 | )% |   |   | (5.2 | )% |   |   | 1.5 | % |
| Balance Sheet Data:                                             |                           |   |                             |   |                           |   |                             |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents                                       |                           | $      | 60,193                           |   |                           | $      | 44,168                           |   |                           | $      | 24,817 |   |   | $ | 9,177 |   |   | $ | 34,839 |   |
| Total assets                                                    |                           | $      | 345,145                          |   |                           | $      | 311,641                          |   |                           | $      | 293,074 |   |   | $ | 291,616 |   |   | $ | 311,162 |   |
| Long-term debt                                                  |                           | $      | 0                                |   |                           | $      | 0                                |   |                           | $      | 0 |   |   | $ | 0 |   |   | $ | 0 |   |
| Total shareholders’ equity                                |                           | $      | 254,343                          |   |                           | $      | 221,829                          |   |                           | $      | 204,636 |   |   | $ | 196,612 |   |   | $ | 209,949 |   |

| (1)    |      | Our fiscal year is a 52/53 week year ending on the Saturday closest to January 31. Unless otherwise stated, references to years 2010, 2009, 2008, 2007, and 2006 relate respectively to the fiscal years ended January 29, 2011, January 30, 2010, January 31, 2009, February 2, 2008, and February 3, 2007. Fiscal year 2006 consisted of 53 weeks and the other fiscal years consisted of 52 weeks. |
|--------|--------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |
| (2)    |                     | Selected Operating Data has been adjusted to a comparable 52 week basis for fiscal 2006.                                                                                                                                                                                                                                                                                                              |
|   |
| (3)    |                     | 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.                                                                                |

----

| ITEM 7.  | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
|---------------|---------------------------------------------------------------------------------------------|

- Q1 – Achieved an all-time quarterly record of $0.72 per diluted share.      
- Q2 – Achieved record second quarter earnings per diluted share of $0.32.    
- Q3 – Achieved record third quarter earnings per diluted share of $0.70. This represented the highest third quarter earnings in our history and the second highest all-time quarterly earnings, trailing only the earnings per diluted share achieved in the first quarter of fiscal 2010. 

----

- Q4 – Achieved fourth quarter earnings per diluted share of $0.33. This represented the second highest fourth quarter earnings in our history, trailing only the earnings per diluted share achieved in the fourth quarter of fiscal 2006, which was a 14-week quarter. 

- Comparable store sales increased 8.2%. This represented the highest annual comparable store sales growth in the history of Shoe Carnival. Our sales gains were largely driven by an increase in the number of footwear units sold, as the consumer responded favorably to our assortment of footwear. We recorded comparable store sales gains in each major merchandise category.       
- Our gross profit margin increased to 30.0% from 28.4% for fiscal 2009. Our merchandise margin increased 1.0%. Buying, distribution and occupancy costs decreased 0.6%, as a percentage of sales, due to the leverage associated with the comparable store sales increase.      
- Net income increased to $26.8 million, or $2.05 per diluted share, compared to $15.2 million, or $1.20 per diluted share for the prior fiscal year. The $2.05 per diluted share represented the highest annual earnings in our history.     
- We ended fiscal 2010 with $60.2 million in cash and cash equivalents and no interest bearing debt.     
- Inventories at January 29, 2011 when compared to the end of the prior year, increased $15.5 million. Approximately half of this increase was attributable to an increase in inventory levels of toning product. While the average unit price obtained for this style of footwear has declined since its original introduction last year, we do not believe that the sale of this product during fiscal 2011 will have a material impact on our overall gross profit margin. Excluding toning product, the increase in inventory was in-line with our non-toning sales trend.     
- We opened ten new stores and relocated three stores. Additionally, we remodeled approximately 5% of our store locations, which coincided with lease renewal activities. 

- Selling, general and administrative expenses are expected to rise moderately, primarily due to store growth.     
- Capital expenditures are expected to increase $5 million to $7 million primarily due to returning to a more normalized new store growth rate, relocating stores to better locations in existing markets and increasing the rate of remodeling of existing stores.     
- We anticipate opening approximately 20 stores, relocating nine and closing five. We are targeting approximately 10% of our store locations for remodel activities. The remodels at the majority of these locations are being performed to coincide with lease renewal activities. 

----

----

|                                                                                                     |       | 2010  |       | 2009   |       | 2008   |
|----------------------------------------------------------------------------------------------------------|--------------------------------|-------|--------------------------------|--------|--------------------------------|--------|
| Net Sales                                                                                                |                           | 100.0 | %                              |   | 100.0                          | %      |   | 100.0 | % |
| Cost of sales (including buying, distribution, and        occupancy costs) |                           | 70.0  |                           |   | 71.6                           |   |   | 73.1 |   |
| Gross profit                                                                                             |                           | 30.0  |                           |   | 28.4                           |   |   | 26.9 |   |
| Selling, general and       administrative expenses                         |                           | 24.3  |                           |   | 24.7                           |   |   | 25.6 |   |
| Operating income                                                                                         |                           | 5.7   |                           |   | 3.7                            |   |   | 1.3 |   |
| Interest income                                                                                          |                           | (0.0  | )                              |   | (0.0                           | )      |   | (0.0 | ) |
| Interest expense                                                                                         |                           | 0.0   |                           |   | 0.0                            |   |   | 0.0 |   |
| Income before income taxes                                                                               |                           | 5.7   |                           |   | 3.7                            |   |   | 1.3 |   |
| Income tax expense                                                                                       |                           | 2.1   |                           |   | 1.5                            |   |   | 0.5 |   |
| Net income                                                                                               |                           | 3.6   | %                              |   | 2.2                            | %      |   | 0.8 | % |

----

----

| (In thousands)                                |       | 2010                            |       | 2009   |       | 2008                            |
|-----------------------------------------------|--------------------------------|---------------------------------|--------------------------------|--------|--------------------------------|---------------------------------|
| Net income plus depreciation and amortization |                           | $                               | 40,556                         |   |                           | $                               | 30,148 |   |   | $ | 22,164 |   |
| Deferred income taxes                         |                           |                            | (1,403                         | )      |                           |                            | (1,042 | ) |   |   | 780 |   |
| Lease incentives                              |                           |                            | 2,974                          |   |                           |                            | 2,211 |   |   |   | 2,038 |   |
| Changes in operating assets and liabilities   |                           |                            | (19,340                        | )      |                           |                            | (4,635 | ) |   |   | 6,480 |   |
| Other operating activities                    |                           |                            | 6,636                          |   |                           |                            | 1,215 |   |   |   | 616 |   |
| Net cash provided by operating activities     |                           |                            | 29,423                         |   |                           |                            | 27,897 |   |   |   | 32,078 |   |
| Net cash used in investing activities         |                           |                            | (14,000                        | )      |                           |                            | (9,685 | ) |   |   | (18,201 | ) |
| Net cash provided by financing activities     |                           |                            | 602                            |   |                           |                            | 1,139 |   |   |   | 1,763 |   |
| Net increase in cash and cash equivalents     |                           | $      | 16,025                         |   |                           | $      | 19,351 |   |   | $      | 15,640 |   |

----

----

| (In thousands)                |                           | Payments Due By Fiscal Year     |
|-------------------------------|--------------------------------|---------------------------------|
|                          |       |                            |   |       |   |   |       | 2012 & |       | 2014 & |       | 2016 and |
| Contractual Obligations       |                           | Total                           |   | 2011 |   | 2013 |   | 2015 |   | after |
| Letters of credit             |                           | $                               | 9,465 |   | $ | 9,465 |   | $ | 0 |   | $ | 0 |   | $ | 0 |
| Operating leases              |                           |                            | 266,907 |   |   | 43,726 |   |   | 79,469 |   |   | 52,805 |   |   | 90,907 |
| Purchase commitments          |                           |                            | 248,848 |   |   | 247,628 |   |   | 784 |   |   | 436 |   |   | 0 |
| Unrecognized tax positions    |                           |                            | 693 |   |   | 0 |   |   | 0 |   |   | 0 |   |   | 693 |
| Deferred compensation         |                           |                            | 4,907 |   |   | 0 |   |   | 187 |   |   | 9 |   |   | 4,711 |
| Total contractual obligations |                           | $      | 530,820 |   | $      | 300,819 |   | $      | 80,440 |   | $      | 53,250 |   | $      | 96,311 |

----

----

----

|                                                                                                                    |       | January 29,                     |       | January 30, |
|-------------------------------------------------------------------------------------------------------------------------|--------------------------------|---------------------------------|--------------------------------|-------------|
|                                                                                                                    |                           | 2011                            |                           | 2010        |
| Assets                                                                                                                  |                           |                            |                           |        |   |   |   |   |
| Current Assets:                                                                                                         |                           |                            |                           |        |   |   |   |   |
|        Cash and cash equivalents                                                          |                           | $      | 60,193                         |        |   | $      | 44,168 |   |
|        Accounts receivable                                                                |                           |                            | 1,550                          |        |   |   | 746 |   |
|        Merchandise inventories                                                            |                           |                            | 212,929                        |        |   |   | 197,452 |   |
|        Deferred income tax benefit                                                        |                           |                            | 4,275                          |        |   |   | 3,255 |   |
|        Other                                                                              |                           |                            | 2,407                          |        |   |   | 2,480 |   |
| Total Current Assets                                                                                                    |                           |                            | 281,354                        |        |   |   | 248,101 |   |
| Property and equipment – net                                                                                      |                           |                            | 62,391                         |        |   |   | 62,162 |   |
| Other                                                                                                                   |                           |                            | 1,400                          |        |   |   | 1,378 |   |
| Total Assets                                                                                                            |                           | $                               | 345,145                        |        |   | $ | 311,641 |   |
|                                                                                                                    |                           |                            |                           |        |   |   |   |   |
| Liabilities and Shareholders’ Equity                                                                              |                           |                            |                           |        |   |   |   |   |
| Current Liabilities:                                                                                                    |                           |                            |                           |        |   |   |   |   |
|        Accounts payable                                                                   |                           | $                               | 55,219                         |        |   | $ | 57,235 |   |
|        Accrued and other liabilities                                                      |                           |                            | 15,457                         |        |   |   | 14,353 |   |
| Total Current Liabilities                                                                                               |                           |                            | 70,676                         |        |   |   | 71,588 |   |
| Deferred lease incentives                                                                                               |                           |                            | 8,211                          |        |   |   | 6,501 |   |
| Accrued rent                                                                                                            |                           |                            | 5,082                          |        |   |   | 5,115 |   |
| Deferred income taxes                                                                                                   |                           |                            | 669                            |        |   |   | 1,052 |   |
| Deferred compensation                                                                                                   |                           |                            | 4,907                          |        |   |   | 3,548 |   |
| Other                                                                                                                   |                           |                            | 1,257                          |        |   |   | 2,008 |   |
| Total Liabilities                                                                                                       |                           |                            | 90,802                         |        |   |   | 89,812 |   |
|                                                                                                                    |                           |                            |                           |        |   |   |   |   |
| Shareholders’ Equity:                                                                                             |                           |                            |                           |        |   |   |   |   |
|        Common stock, $.01 par value, 50,000 shares authorized,                            |                           |                            |                           |        |   |   |   |   |
|               13,655 shares issued at January 29, 2011 |                           |                            |                           |        |   |   |   |   |
|               and January 30, 2010                     |                           |                            | 137                            |        |   |   | 137 |   |
|        Additional paid-in capital                                                         |                           |                            | 68,833                         |        |   |   | 66,851 |   |
|        Retained earnings                                                                  |                           |                            | 195,853                        |        |   |   | 169,032 |   |
|        Treasury stock, at cost, 456 and 622 shares at January 29, 2011                    |                           |                            |                           |        |   |   |   |   |
|               and January 30, 2010                     |                           |                            | (10,480                        | )           |   |   | (14,191 | ) |
| Total Shareholders’ Equity                                                                                        |                           |                            | 254,343                        |        |   |   | 221,829 |   |
| Total Liabilities and Shareholders’ Equity                                                                        |                           | $                               | 345,145                        |        |   | $ | 311,641 |   |

----

|                                                                   |       | January 29,                           |       | January 30, |       | January 31,                           |
|------------------------------------------------------------------------|--------------------------------|---------------------------------------|--------------------------------|-------------|--------------------------------|---------------------------------------|
|                                                                   |                           | 2011                                  |                           | 2010        |                           | 2009                                  |
| Net sales                                                              |                           | $       | 739,189                        |        |                           | $       | 682,422 |   |   | $       | 647,572 |   |
| Cost of sales (including buying,                                       |                           |                                  |                           |        |                           |                                  |   |   |   |   |   |   |
|        distribution and occupancy costs) |                           |                                  | 517,650                        |        |                           |                                  | 488,816 |   |   |   | 473,244 |   |
|                                                                   |                           |                                  |                           |        |                           |                                  |   |   |   |   |   |   |
| Gross profit                                                           |                           |                                  | 221,539                        |        |                           |                                  | 193,606 |   |   |   | 174,328 |   |
| Selling, general and administrative expenses                           |                           |                                  | 179,154                        |        |                           |                                  | 168,476 |   |   |   | 165,953 |   |
|                                                                   |                           |                                  |                           |        |                           |                                  |   |   |   |   |   |   |
| Operating income                                                       |                           |                                  | 42,385                         |        |                           |                                  | 25,130 |   |   |   | 8,375 |   |
| Interest income                                                        |                           |                                  | (165                           | )           |                           |                                  | (39 | ) |   |   | (148 | ) |
| Interest expense                                                       |                           |                                  | 258                            |        |                           |                                  | 174 |   |   |   | 153 |   |
|                                                                   |                           |                                  |                           |        |                           |                                  |   |   |   |   |   |   |
| Income before income taxes                                             |                           |                                  | 42,292                         |        |                           |                                  | 24,995 |   |   |   | 8,370 |   |
| Income tax expense                                                     |                           |                                  | 15,471                         |        |                           |                                  | 9,829 |   |   |   | 3,051 |   |
|                                                                   |                           |                                  |                           |        |                           |                                  |   |   |   |   |   |   |
| Net income                                                             |                           | $                                     | 26,821                         |        |                           | $                                     | 15,166 |   |   | $ | 5,319 |   |
|                                                                   |                           |                                  |                           |        |                           |                                  |   |   |   |   |   |   |
| Net income per share:                                                  |                           |                                  |                           |        |                           |                                  |   |   |   |   |   |   |
| Basic                                                                  |                           | $                                     | 2.11                           |        |                           | $                                     | 1.21 |   |   | $ | 0.43 |   |
| Diluted                                                                |                           | $                                     | 2.05                           |        |                           | $                                     | 1.20 |   |   | $ | 0.43 |   |
|                                                                   |                           |                                  |                           |        |                           |                                  |   |   |   |   |   |   |
| Average shares outstanding:                                            |                           |                                  |                           |        |                           |                                  |   |   |   |   |   |   |
| Basic                                                                  |                           |                                  | 12,724                         |        |                           |                                  | 12,513 |   |   |   | 12,406 |   |
| Diluted                                                                |                           |                                  | 13,060                         |        |                           |                                  | 12,660 |   |   |   | 12,492 |   |

----

|                                                    |                           |         |                           |     |                                  |     |                           |                            |                           |     | Additional                      |   |                           |   |                            |    |   |                            |    |   |   |                            |
|---------------------------------------------------------|--------------------------------|--------------|--------------------------------|----------|---------------------------------------|----------|--------------------------------|---------------------------------|--------------------------------|----------|---------------------------------|--------|--------------------------------|--------|---------------------------------|---------|--------|---------------------------------|---------|--------|--------|---------------------------------|
|                                                    |                           | Common Stock |                           | Paid-In  |                                  | Retained |                           | Treasury                        |                           |     |                            |   |
|                                                    |       | Issued       |       | Treasury |              | Amount   |       | Capital                         |       | Earnings |        | Stock  |       | Total  |
| Balance at                                              |                           |         |                           |     |                                  |     |                           |                            |                           |     |                            |   |                           |   |                            |    |   |                            |    |   |   |                            |   |   |
|        February 2, 2008   |                           | 13,670       |                           |     |       (1,205 | )        |                           | $      | 137                            |     | $      | 75,523 |                           |   | $      | 148,547 |   | $      | (27,595 | )      |   | $      | 196,612 |   |
| Stock option exercises                                  |                           |         |                           |     | 124                                   |     |                           |                            |                           |     |                            | (1,462 | )                              |   |                            |    |   |                            | 2,837   |   |   |                            | 1,375 |   |
| Stock-based compensation                                |                           |         |                           |     |                                  |     |                           |                            |                           |     |                            |   |                           |   |                            |    |   |                            |    |   |   |                            |   |   |
|        income tax benefit |                           |         |                           |     |                                  |     |                           |                            |                           |     |                            | 214    |                           |   |                            |    |   |                            |    |   |   |                            | 214 |   |
| Employee stock purchase                                 |                           |         |                           |     |                                  |     |                           |                            |                           |     |                            |   |                           |   |                            |    |   |                            |    |   |   |                            |   |   |
|        plan purchases     |                           |         |                           |     | 16                                    |     |                           |                            |                           |     |                            | (191   | )                              |   |                            |    |   |                            | 356     |   |   |                            | 165 |   |
| Restricted stock awards                                 |                           | (6           | )                              |     | 320                                   |     |                           |                            |                           |     |                            | (7,350 | )                              |   |                            |    |   |                            | 7,350   |   |   |                            | 0 |   |
| Common stock                                            |                           |         |                           |     |                                  |     |                           |                            |                           |     |                            |   |                           |   |                            |    |   |                            |    |   |   |                            |   |   |
|        repurchased        |                           |         |                           |     |                                  |     |                           |                            |                           |     |                            |   |                           |   |                            |    |   |                            | (1      | )      |   |                            | (1 | ) |
| Stock-based compensation                                |                           |         |                           |     |                                  |     |                           |                            |                           |     |                            |   |                           |   |                            |    |   |                            |    |   |   |                            |   |   |
|        expense            |                           |         |                           |     |                                  |     |                           |                            |                           |     |                            | 952    |                           |   |                            |    |   |                            |    |   |   |                            | 952 |   |
| Net income                                              |                           |         |                           |     |                                  |     |                           |                            |                           |     |                            |   |                           |   |                            | 5,319   |   |                            |    |   |   |                            | 5,319 |   |
|                                                    |                           |         |                           |     |                                  |     |                           |                            |                           |     |                            |   |                           |   |                            |    |   |                            |    |   |   |                            |   |   |
| Balance at                                              |                           |         |                           |     |                                  |     |                           |                            |                           |     |                            |   |                           |   |                            |    |   |                            |    |   |   |                            |   |   |
|        January 31, 2009   |                           | 13,664       |                           |     | (745                                  | )        |                           |                            | 137                            |     |                            | 67,686 |                           |   |                            | 153,866 |   |                            | (17,053 | )      |   |                            | 204,636 |   |
| Stock option exercises                                  |                           |         |                           |     | 125                                   |     |                           |                            |                           |     |                            | (1,853 | )                              |   |                            |    |   |                            | 2,851   |   |   |                            | 998 |   |
| Stock-based compensation                                |                           |         |                           |     |                                  |     |                           |                            |                           |     |                            |   |                           |   |                            |    |   |                            |    |   |   |                            |   |   |
|        income tax benefit |                           |         |                           |     |                                  |     |                           |                            |                           |     |                            | 376    |                           |   |                            |    |   |                            |    |   |   |                            | 376 |   |
| Employee stock purchase                                 |                           |         |                           |     |                                  |     |                           |                            |                           |     |                            |   |                           |   |                            |    |   |                            |    |   |   |                            |   |   |
|        plan purchases     |                           |         |                           |     | 13                                    |     |                           |                            |                           |     |                            | (157   | )                              |   |                            |    |   |                            | 307     |   |   |                            | 150 |   |
| Restricted stock awards                                 |                           | (9           | )                              |     | 4                                     |     |                           |                            |                           |     |                            | (98    | )                              |   |                            |    |   |                            | 98      |   |   |                            | 0 |   |
| Common stock                                            |                           |         |                           |     |                                  |     |                           |                            |                           |     |                            |   |                           |   |                            |    |   |                            |    |   |   |                            |   |   |
|        repurchased        |                           |         |                           |     | (19                                   | )        |                           |                            |                           |     |                            |   |                           |   |                            |    |   |                            | (394    | )      |   |                            | (394 | ) |
| Stock-based compensation                                |                           |         |                           |     |                                  |     |                           |                            |                           |     |                            |   |                           |   |                            |    |   |                            |    |   |   |                            |   |   |
|        expense            |                           |         |                           |     |                                  |     |                           |                            |                           |     |                            | 897    |                           |   |                            |    |   |                            |    |   |   |                            | 897 |   |
| Net income                                              |                           |         |                           |     |                                  |     |                           |                            |                           |     |                            |   |                           |   |                            | 15,166  |   |                            |    |   |   |                            | 15,166 |   |
|                                                    |                           |         |                           |     |                                  |     |                           |                            |                           |     |                            |   |                           |   |                            |    |   |                            |    |   |   |                            |   |   |
| Balance at                                              |                           |         |                           |     |                                  |     |                           |                            |                           |     |                            |   |                           |   |                            |    |   |                            |    |   |   |                            |   |   |
|        January 30, 2010   |                           | 13,655       |                           |     | (622                                  | )        |                           |                            | 137                            |     |                            | 66,851 |                           |   |                            | 169,032 |   |                            | (14,191 | )      |   |                            | 221,829 |   |
| Stock option exercises                                  |                           |         |                           |     | 50                                    |     |                           |                            |                           |     |                            | (568   | )                              |   |                            |    |   |                            | 1,146   |   |   |                            | 578 |   |
| Stock-based compensation                                |                           |         |                           |     |                                  |     |                           |                            |                           |     |                            |   |                           |   |                            |    |   |                            |    |   |   |                            |   |   |
|        income tax benefit |                           |         |                           |     |                                  |     |                           |                            |                           |     |                            | 626    |                           |   |                            |    |   |                            |    |   |   |                            | 626 |   |
| Employee stock purchase                                 |                           |         |                           |     |                                  |     |                           |                            |                           |     |                            |   |                           |   |                            |    |   |                            |    |   |   |                            |   |   |
|        plan purchases     |                           |         |                           |     | 9                                     |     |                           |                            |                           |     |                            | (30    | )                              |   |                            |    |   |                            | 190     |   |   |                            | 160 |   |
| Restricted stock awards                                 |                           |         |                           |     | 133                                   |     |                           |                            |                           |     |                            | (3,031 | )                              |   |                            |    |   |                            | 3,031   |   |   |                            | 0 |   |
| Common stock                                            |                           |         |                           |     |                                  |     |                           |                            |                           |     |                            |   |                           |   |                            |    |   |                            |    |   |   |                            |   |   |
|        repurchased        |                           |         |                           |     | (26                                   | )        |                           |                            |                           |     |                            |   |                           |   |                            |    |   |                            | (656    | )      |   |                            | (656 | ) |
| Stock-based compensation                                |                           |         |                           |     |                                  |     |                           |                            |                           |     |                            |   |                           |   |                            |    |   |                            |    |   |   |                            |   |   |
|        expense            |                           |         |                           |     |                                  |     |                           |                            |                           |     |                            | 4,985  |                           |   |                            |    |   |                            |    |   |   |                            | 4,985 |   |
| Net income                                              |                           |         |                           |     |                                  |     |                           |                            |                           |     |                            |   |                           |   |                            | 26,821  |   |                            |    |   |   |                            | 26,821 |   |
| Balance at                                              |                           |         |                           |     |                                  |     |                           |                            |                           |     |                            |   |                           |   |                            |    |   |                            |    |   |   |                            |   |   |
|        January 29, 2011   |                           | 13,655       |                           |     | (456                                  | )        |                           | $                               | 137                            |     | $                               | 68,833 |                           |   | $                               | 195,853 |   | $                               | (10,480 | )      |   | $                               | 254,343 |   |

----

|                                                                                                                                                              |       | January 29,                           |       | January 30, |       | January 31,                           |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|---------------------------------------|--------------------------------|-------------|--------------------------------|---------------------------------------|
|                                                                                                                                                              |                           | 2011                                  |                           | 2010        |                           | 2009                                  |
| Cash Flows From Operating Activities                                                                                                                              |                           |                                  |                           |        |                           |                                  |   |   |   |   |   |   |
|        Net income                                                                                                                   |                           | $       | 26,821                         |        |                           | $       | 15,166 |   |   | $       | 5,319 |   |
|        Adjustments to reconcile net income to net                                                                                   |                           |                                  |                           |        |                           |                                  |   |   |   |   |   |   |
|               cash provided by operating activities:                                             |                           |                                  |                           |        |                           |                                  |   |   |   |   |   |   |
|               Depreciation and amortization                                                      |                           |                                  | 13,735                         |        |                           |                                  | 14,982 |   |   |   | 16,845 |   |
|               Stock-based compensation                                                           |                           |                                  | 5,468                          |        |                           |                                  | 1,648 |   |   |   | 977 |   |
|               Loss on retirement and impairment of assets                                        |                           |                                  | 1,995                          |        |                           |                                  | 228 |   |   |   | 2,454 |   |
|               Deferred income taxes                                                              |                           |                                  | (1,403                         | )           |                           |                                  | (1,042 | ) |   |   | 780 |   |
|               Lease incentives                                                                   |                           |                                  | 2,974                          |        |                           |                                  | 2,211 |   |   |   | 2,038 |   |
|               Other                                                                              |                           |                                  | (827                           | )           |                           |                                  | (661 | ) |   |   | (2,815 | ) |
|               Changes in operating assets and liabilities:                                       |                           |                                  |                           |        |                           |                                  |   |   |   |   |   |   |
|                      Accounts receivable                      |                           |                                  | (804                           | )           |                           |                                  | 961 |   |   |   | (1,196 | ) |
|                      Merchandise inventories                  |                           |                                  | (15,477                        | )           |                           |                                  | (7,958 | ) |   |   | 11,287 |   |
|                      Accounts payable and accrued liabilities |                           |                                  | (2,669                         | )           |                           |                                  | 40 |   |   |   | (6,195 | ) |
|                      Other                                    |                           |                                  | (390                           | )           |                           |                                  | 2,322 |   |   |   | 2,584 |   |
| Net cash provided by operating activities                                                                                                                         |                           |                                  | 29,423                         |        |                           |                                  | 27,897 |   |   |   | 32,078 |   |
|                                                                                                                                                              |                           |                                  |                           |        |                           |                                  |   |   |   |   |   |   |
| Cash Flows From Investing Activities                                                                                                                              |                           |                                  |                           |        |                           |                                  |   |   |   |   |   |   |
|        Purchases of property and equipment                                                                                          |                           |                                  | (14,412                        | )           |                           |                                  | (9,794 | ) |   |   | (18,204 | ) |
|        Proceeds from sale of property and equipment                                                                                 |                           |                                  | 312                            |        |                           |                                  | 9 |   |   |   | 3 |   |
|        Proceeds from note receivable                                                                                                |                           |                                  | 100                            |        |                           |                                  | 100 |   |   |   | 0 |   |
| Net cash used in investing activities                                                                                                                             |                           |                                  | (14,000                        | )           |                           |                                  | (9,685 | ) |   |   | (18,201 | ) |
|                                                                                                                                                              |                           |                                  |                           |        |                           |                                  |   |   |   |   |   |   |
| Cash Flow From Financing Activities                                                                                                                               |                           |                                  |                           |        |                           |                                  |   |   |   |   |   |   |
|        Borrowings under line of credit                                                                                              |                           |                                  | 0                              |        |                           |                                  | 0 |   |   |   | 6,625 |   |
|        Payments on line of credit                                                                                                   |                           |                                  | 0                              |        |                           |                                  | 0 |   |   |   | (6,625 | ) |
|        Proceeds from issuance of stock                                                                                              |                           |                                  | 738                            |        |                           |                                  | 1,148 |   |   |   | 1,540 |   |
|        Excess tax benefits from stock-based compensation                                                                            |                           |                                  | 520                            |        |                           |                                  | 385 |   |   |   | 224 |   |
|        Common stock repurchased                                                                                                     |                           |                                  | (656                           | )           |                           |                                  | (394 | ) |   |   | (1 | ) |
| Net cash provided by financing activities                                                                                                                         |                           |                                  | 602                            |        |                           |                                  | 1,139 |   |   |   | 1,763 |   |
| Net increase in cash and cash equivalents                                                                                                                         |                           |                                  | 16,025                         |        |                           |                                  | 19,351 |   |   |   | 15,640 |   |
| Cash and cash equivalents at beginning of year                                                                                                                    |                           |                                  | 44,168                         |        |                           |                                  | 24,817 |   |   |   | 9,177 |   |
|                                                                                                                                                              |                           |                                  |                           |        |                           |                                  |   |   |   |   |   |   |
| Cash and Cash Equivalents at End of Year                                                                                                                          |                           | $                                     | 60,193                         |        |                           | $                                     | 44,168 |   |   | $ | 24,817 |   |
|                                                                                                                                                              |                           |                                  |                           |        |                           |                                  |   |   |   |   |   |   |
| Supplemental disclosures of cash flow information:                                                                                                                |                           |                                  |                           |        |                           |                                  |   |   |   |   |   |   |
|        Cash paid during year for interest                                                                                           |                           | $                                     | 252                            |        |                           | $                                     | 181 |   |   | $ | 151 |   |
|        Cash paid during year for income taxes                                                                                       |                           | $                                     | 17,433                         |        |                           | $                                     | 7,216 |   |   | $ | 3,022 |   |
|        Capital expenditures incurred but not yet paid                                                                               |                           | $                                     | 2,123                          |        |                           | $                                     | 264 |   |   | $ | 1,695 |   |
|                                                                                                                                                              |                           |                                  |                           |        |                           |                                  |   |   |   |   |   |   |
| Supplemental disclosures of non-cash operating and investing                                                                                                      |                           |                                  |                           |        |                           |                                  |   |   |   |   |   |   |
| activities:                                                                                                                                                       |                           |                                  |                           |        |                           |                                  |   |   |   |   |   |   |
|        Forgiveness of accounts payable from litigation settlement (1)                                                               |                           | $                                     | 0                              |        |                           | $                                     | 1,160 |   |   | $ | 0 |   |
|        Recording of note receivable from litigation settlement (1)                                                                  |                           | $                                     | 0                              |        |                           | $                                     | 1,200 |   |   | $ | 0 |   |

| (1) |       | On May 30, 2009, a settlement with SDI Industries, Inc. ("SDI") was reached. SDI agreed to forego the collection of the unpaid retainage and to pay $1.2 million towards remediation of the distribution center's material handling system. |
|-----|--------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

| (In thousands)                        |       | 2010                                        |       | 2009                                        |       | 2008                                        |
|---------------------------------------|--------------------------------|---------------------------------------------|--------------------------------|---------------------------------------------|--------------------------------|---------------------------------------------|
| Basic shares                          |                           |        12,724 |                           |        12,513 |                           |        12,406 |
| Dilutive effect of stock-based awards |                           | 336                                         |                           | 147                                         |                           | 86                                          |
| Diluted shares                        |                           | 13,060                                      |                           | 12,660                                      |                           | 12,492                                      |

----

- Level 1 – Quoted prices in active markets that are unadjusted and accessible at the measurement date for identical, unrestricted assets or liabilities;  
- Level 2 – Quoted prices for identical assets and liabilities in markets that are not active, quoted prices for similar assets and liabilities in active markets or financial instruments for which significant inputs are observable, either directly or indirectly; and  
- Level 3 – Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. 

|                                                                       |       | Quoted Prices                   |       | Significant |        |         |   |        |   |   |
|----------------------------------------------------------------------------|--------------------------------|---------------------------------|--------------------------------|-------------|---------------------------------|--------------|--------|---------------------------------|--------|--------|
|                                                                       |                           | in Active                       |                           | Other       |                            | Significant  |   |                            |   |
|                                                                       |                           | Markets for                     |                           | Observable  |                            | Unobservable |   |                            |   |
|                                                                       |                           | Identical Assets                |                           | Inputs      |                            | Inputs       |   | Total Fair                      |
| (In thousands)                                                             |                           | (Level 1)                       |                           | (Level 2)   |                            | (Level 3)    |   | Value                           |
| As of January 29, 2011                                                     |                           |                            |                           |        |                            |         |   |                            |   |   |   |   |
|        Cash and short-term investments (1)   |                           | $      | 54,915                         |        | $      | 0            |   | $      | 0      |   | $      | 54,915 |
|        Credit and debit card receivables (2) |                           |                            | 5,278                          |        |                            | 0            |   |                            | 0      |   |   | 5,278 |
|                                                                       |                           | $                               | 60,193                         |        | $                               | 0            |   | $                               | 0      |   | $ | 60,193 |
|                                                                       |                           |                            |                           |        |                            |         |   |                            |   |   |   |   |
| As of January 30, 2010                                                     |                           |                            |                           |        |                            |         |   |                            |   |   |   |   |
|        Cash and short-term investments (1)   |                           | $                               | 40,148                         |        | $                               | 0            |   | $                               | 0      |   | $ | 40,148 |
|        Credit and debit card receivables (2) |                           |                            | 4,020                          |        |                            | 0            |   |                            | 0      |   |   | 4,020 |
|                                                                       |                           | $                               | 44,168                         |        | $                               | 0            |   | $                               | 0      |   | $ | 44,168 |

| (1)    |      | Cash and short-term investments represent cash deposits and short-term investments held with financial institutions, such as commercial paper and money market funds. To date, we have experienced no loss or lack of access to either invested cash or cash held in our bank accounts. |
|--------|--------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |
| (2)    |                     | Our credit and debit card receivables are highly liquid financial assets that typically settle in less than three days.                                                                                                                                                                 |

----

|                                           |       | January 29,                     |       | January 30, |
|------------------------------------------------|--------------------------------|---------------------------------|--------------------------------|-------------|
| (In thousands)                                 |                           | 2011                            |                           | 2010        |
| Furniture, fixtures and equipment              |                           | $      | 108,936                        |        |   | $      | 104,539 |   |
| Leasehold improvements                         |                           |                            | 63,391                         |        |   |   | 60,657 |   |
| Total                                          |                           |                            | 172,327                        |        |   |   | 165,196 |   |
| Less accumulated depreciation and amortization |                           |                            | (109,936                       | )           |   |   | (103,034 | ) |
|                                           |                           |                            |                           |        |   |   |   |   |
| Property and equipment – net             |                           | $                               | 62,391                         |        |   | $ | 62,162 |   |

----

| (In thousands)            |       | 2010                            |       | 2009   |        | 2008   |
|---------------------------|--------------------------------|---------------------------------|--------------------------------|--------|---------------------------------|--------|
| Rentals for real property |                           | $      | 47,745                         |   | $      | 47,292 |   | $      | 46,628 |
| Contingent rent           |                           |                            | 136                            |   |                            | 52     |   |   | 50 |
| Equipment rentals         |                           |                            | 133                            |   |                            | 334    |   |   | 393 |
| Total                     |                           | $                               | 48,014                         |   | $                               | 47,678 |   | $ | 47,071 |

|               |       | Operating                       |
|--------------------|--------------------------------|---------------------------------|
| (In thousands)     |                           | Leases                          |
| 2011               |                           | $      | 43,726 |
| 2012               |                           |                            | 43,922 |
| 2013               |                           |                            | 35,547 |
| 2014               |                           |                            | 26,636 |
| 2015               |                           |                            | 26,169 |
| Thereafter to 2024 |                           |                            | 90,907 |
| Total              |                           | $                               | 266,907 |

----

| (In thousands)                               |       | 2010                            |       | 2009   |       | 2008                            |
|----------------------------------------------|--------------------------------|---------------------------------|--------------------------------|--------|--------------------------------|---------------------------------|
| Current:                                     |                           |                            |                           |   |                           |                            |   |   |   |   |   |
|        Federal |                           | $      | 15,514                         |   |                           | $      | 9,188 |   |   | $      | 1,825 |
|        State   |                           |                            | 1,360                          |   |                           |                            | 1,683 |   |   |   | 446 |
| Total current                                |                           |                            | 16,874                         |   |                           |                            | 10,871 |   |   |   | 2,271 |
|                                         |                           |                            |                           |   |                           |                            |   |   |   |   |   |
| Deferred:                                    |                           |                            |                           |   |                           |                            |   |   |   |   |   |
|        Federal |                           |                            | (1,220                         | )      |                           |                            | (1,134 | ) |   |   | 758 |
|        State   |                           |                            | (183                           | )      |                           |                            | 92 |   |   |   | 22 |
| Total deferred                               |                           |                            | (1,403                         | )      |                           |                            | (1,042 | ) |   |   | 780 |
|                                         |                           |                            |                           |   |                           |                            |   |   |   |   |   |
| Total provision                              |                           | $                               | 15,471                         |   |                           | $                               | 9,829 |   |   | $ | 3,051 |

| Fiscal years                                     |       | 2010                           |       | 2009   |            | 2008   |
|--------------------------------------------------|--------------------------------|--------------------------------|--------------------------------|--------|-------------------------------------|--------|
| U.S. Federal statutory tax rate                  |                           | 35.0                           | %                              |   | 35.0                                | %      |   | 35.0 | % |
| State and local income taxes, net of federal tax |                           |                           |                           |   |                                |   |   |   |   |
|        benefit     |                           | 2.8                            |                           |   | 7.1                                 |   |   | 5.6 |   |
| Other                                            |                           | (1.2                           | )                              |   | (2.8                                | )      |   | (4.1 | ) |
| Effective income tax rate                        |                           |       36.6 | %                              |   |       39.3 | %      |   |       36.5 | % |

----

|                                                                   |       | January 29,                                             |       | January 30, |
|------------------------------------------------------------------------|--------------------------------|---------------------------------------------------------|--------------------------------|-------------|
| (In thousands)                                                         |                           | 2011                                                    |                           | 2010        |
| Deferred tax assets:                                                   |                           |                                                    |                           |        |   |   |   |   |
|        Accrued rent                      |                           | $          | 1,956                          |        |   | $          | 1,941 |   |
|        Accrued compensation              |                           |                                                    | 2,393                          |        |   |   | 1,996 |   |
|        Accrued employee benefits         |                           |                                                    | 3,013                          |        |   |   | 1,734 |   |
|        Inventory                         |                           |                                                    | 875                            |        |   |   | 686 |   |
|        Self-insurance reserves           |                           |                                                    | 551                            |        |   |   | 600 |   |
|        Lease incentives                  |                           |                                                    | 2,892                          |        |   |   | 1,371 |   |
|        Unrecognized tax benefits         |                           |                                                    | 328                            |        |   |   | 597 |   |
|        State bonus depreciation add-back |                           |                                                    | 279                            |        |   |   | 200 |   |
|        Other                             |                           |                                                    | 296                            |        |   |   | 306 |   |
|        Total deferred tax assets         |                           |                                                    | 12,583                         |        |   |   | 9,431 |   |
|                                                                   |                           |                                                    |                           |        |   |   |   |   |
| Deferred tax liabilities:                                              |                           |                                                    |                           |        |   |   |   |   |
|        Depreciation                      |                           |                                                    | 8,217                          |        |   |   | 6,557 |   |
|        Capitalized costs                 |                           |                                                    | 760                            |        |   |   | 671 |   |
|        Total deferred tax liabilities    |                           |                                                    | 8,977                          |        |   |   | 7,228 |   |
| Net deferred tax asset                                                 |                           |                                                    | 3,606                          |        |   |   | 2,203 |   |
| Less current deferred income tax benefit                               |                           |                                                    | (4,275                         | )           |   |   | (3,255 | ) |
| Long-term deferred income taxes                                        |                           | $                                                       | (669                           | )           |   | $ | (1,052 | ) |

| (In thousands)                                                                             |       | 2010                            |       | 2009   |       | 2008                            |
|--------------------------------------------------------------------------------------------|--------------------------------|---------------------------------|--------------------------------|--------|--------------------------------|---------------------------------|
| Beginning balance                                                                          |                           | $      | 1,357                          |   |                           | $      | 1,135 |   |   | $      | 1,029 |   |
|        Increases – tax positions in prior period       |                           |                            | 0                              |   |                           |                            | 150 |   |   |   | 0 |   |
|        Decreases – tax positions in prior period       |                           |                            | (617                           | )      |                           |                            | 0 |   |   |   | (20 | ) |
|        Gross increases – current period tax positions  |                           |                            | 100                            |   |                           |                            | 179 |   |   |   | 126 |   |
|        Decreases related to settlements with taxing          |                           |                            |                           |   |                           |                            |   |   |   |   |   |   |
|               authorities |                           |                            | (147                           | )      |                           |                            | (107 | ) |   |   | 0 |   |
| Ending balance                                                                             |                           | $                               | 693                            |   |                           | $                               | 1,357 |   |   | $ | 1,135 |   |

----

| (In thousands)                                                             |       | 2010 (1)                        |       | 2009   |        | 2008   |
|----------------------------------------------------------------------------|--------------------------------|---------------------------------|--------------------------------|--------|---------------------------------|--------|
| Stock-based compensation expense before                                    |                           |                            |                           |   |                            |   |   |   |   |
|        the recognized income tax benefit (2) |                           | $      | 28                             |   | $      | 26     |   | $      | 29 |
| Income tax benefit                                                         |                           | $                               | 11                             |   | $                               | 10     |   | $ | 11 |

| (1)    |        | Income tax benefit was calculated using an adjusted effective tax rate. The adjusted rate removes the tax effects from the favorable resolution of certain tax positions. |
|--------|--------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |
| (2)    |                                 | Amounts are representative of the 15% discount employees are provided for purchases under the Stock Purchase Plan.                                                        |

----

----

|                                                              |       |                                               |   |       |                            |         |       | Weighted-  |       |                            |   |
|-------------------------------------------------------------------|--------------------------------|----------------------------------------------------|--------|--------------------------------|---------------------------------|--------------|--------------------------------|------------|--------------------------------|---------------------------------|--------|
|                                                              |                           |                                               |   |                           |                            |         |                           | Average    |                           | Aggregate                       |
|                                                              |                           |                                               |   |                           | Weighted-                       |         | Remaining                      |       | Intrinsic                      |
|                                                              |                           | Number of                                          |   | Average                        |                            | Contractual  |                           | Value (in  |
|                                                              |                           | Shares                                             |   | Exercise Price                 |                            | Term (Years) |                           | thousands) |
| Outstanding at January 30, 2010                                   |                           | 393,632                                            |   |                           | $      | 14.29        |                           |       |                           |                            |   |
|        Granted                      |                           | 0                                                  |   |                           |                            |         |                           |       |                           |                            |   |
|        Forfeited or expired         |                           | (750                                               | )      |                           |                            | 13.33        |                           |       |                           |                            |   |
|        Exercised                    |                           |         (50,164 | )      |                           |                            | 11.52        |                           |       |                           |                            |   |
| Outstanding at January 29, 2011                                   |                           | 342,718                                            |   |                           | $                               | 14.70        |                           | 2.25       |                           | $      | 3,393  |
| Options outstanding at January 29, 2011,                          |                           |                                               |   |                           |                            |         |                           |       |                           |                            |   |
|        net of estimated forfeitures |                           | 342,521                                            |   |                           | $                               | 14.70        |                           | 2.25       |                           | $                               | 3,390  |
| Exercisable at January 29, 2011                                   |                           | 335,217                                            |   |                           | $                               | 14.72        |                           | 2.14       |                           | $                               | 3,313  |

| Fiscal years            |       | 2008                                 |
|-------------------------|--------------------------------|--------------------------------------|
| Risk free interest rate |                           | 3.0                                  | % |
| Expected dividend yield |                           | 0.0                                  | % |
| Expected volatility     |                           |       45.93 | % |
| Expected term           |                           | 5 Years                              |

----

| (In thousands)                                |       | 2010                            |       | 2009   |        | 2008   |
|-----------------------------------------------|--------------------------------|---------------------------------|--------------------------------|--------|---------------------------------|--------|
| Total intrinsic value (1)                     |                           | $      | 656                            |   | $      | 1,290  |   | $      | 640 |
| Total cash received                           |                           | $                               | 578                            |   | $                               | 998    |   | $ | 1,375 |
| Associated excess income tax benefits         |                           |                            |                           |   |                            |   |   |   |   |
|        recorded |                           | $                               | 220                            |   | $                               | 385    |   | $ | 224 |

|                            |                |       | Options Outstanding |                           | Options Exercisable |
|---------------------------------|---------------------|--------------------------------|---------------------|--------------------------------|---------------------|
|                            |                |                           | Number              |       | Weighted            |       | Weighted |       | Number |       | Weighted |
| Range of                        |                | of Options                     |                | Average                        |                | Average |   | of Options |   | Average |
| Exercise Price                  |                | Outstanding                    |                | Remaining Life                 |                | Exercise Price |   | Exercisable |   | Exercise Price |
| $      | 8.94 – 12.67  |                           | 163,668             |                           | 2.64                |   | $ | 12.47 |   | 162,001 |   | $ | 12.48 |
| $                               | 13.68 – 17.12 |                           | 179,050             |                           | 1.89                |   | $ | 16.74 |   | 173,216 |   | $ | 16.81 |

| (In thousands)                                                         |       | 2010 (1)                        |       | 2009   |        | 2008   |
|------------------------------------------------------------------------|--------------------------------|---------------------------------|--------------------------------|--------|---------------------------------|--------|
| Stock-based compensation expense before                                |                           |                            |                           |   |                            |   |   |   |   |
|        the recognized income tax benefit |                           | $      | 82                             |   | $      | 84     |   | $      | 71 |
| Income tax benefit                                                     |                           | $                               | 31                             |   | $                               | 33     |   | $ | 26 |

| (1) |      | Income tax benefit was calculated using an adjusted effective tax rate. The adjusted rate removes the tax effects from the favorable resolution of certain tax positions. |
|-----|--------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                         |       |                                    |   |       | Weighted-                       |
|----------------------------------------------|--------------------------------|-----------------------------------------|--------|--------------------------------|---------------------------------|
|                                         |                           | Number of                               |   | Average Grant                  |
|                                         |                           | Shares                                  |   | Date Fair Value                |
| Non-vested at January 30, 2010               |                           | 366,334                                 |   |                           | $      | 16.89 |
|        Granted |                           | 132,781                                 |   |                           |                            | 21.65 |
|        Vested  |                           |       (107,769 | )      |                           |                            | 11.79 |
| Non-vested at January 29, 2011               |                           | 391,346                                 |   |                           | $                               | 19.91 |

----

| (In thousands)                                                         |       | 2010 (1)                        |       | 2009   |        | 2008   |
|------------------------------------------------------------------------|--------------------------------|---------------------------------|--------------------------------|--------|---------------------------------|--------|
| Stock-based compensation expense before                                |                           |                            |                           |   |                            |   |   |   |   |
|        the recognized income tax benefit |                           | $      | 4,875                          |   | $      | 787    |   | $      | 852 |
| Income tax benefit                                                     |                           | $                               | 1,851                          |   | $                               | 309    |   | $ | 311 |

| (1) |      | Income tax benefit was calculated using an adjusted effective tax rate. The adjusted rate removes the tax effects from the favorable resolution of certain tax positions. |
|-----|--------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                      |       |                                   |   |       |                            |         |       | Weighted- |
|-----------------------------------------------------------|--------------------------------|----------------------------------------|--------|--------------------------------|---------------------------------|--------------|--------------------------------|-----------|
|                                                      |                           |                                   |   |                           |                            |         |                           | Average   |
|                                                      |                           |                                   |   |                           | Weighted-                       |         | Remaining                      |
|                                                      |                           | Number of                              |   | Average                        |                            | Contractual  |
|                                                      |                           | Shares                                 |   | Exercise Price                 |                            | Term (Years) |
| Outstanding at January 30, 2010                           |                           | 103,364                                |   |                           | $      | 9.72         |                           |      |
|        Granted              |                           | 0                                      |   |                           |                            | 0.00         |                           |      |
|        Forfeited or expired |                           | (2,001                                 | )      |                           |                            | 9.72         |                           |      |
|        Exercised            |                           |       (50,677 | )      |                           |                            | 9.72         |                           |      |
| Outstanding at January 29, 2011                           |                           | 50,686                                 |   |                           | $                               | 9.72         |                           | 2.88      |
|                                                      |                           |                                   |   |                           |                            |         |                           |      |
| Exercisable at January 29, 2011                           |                           | 0                                      |   |                           | $                               | 0.00         |                           | 0.00      |

----

|                                |                           | January 29,       |
|-------------------------------------|--------------------------------|-------------------|
|                                |       | 2011              |
| Risk free interest rate yield curve |                           | 0.13% - 1.92%     |
| Expected dividend yield             |                           | 0.0%              |
| Expected volatility                 |                           | 58.82%            |
| Maximum life                        |                           | 2.88 Years        |
| Exercise multiple                   |                           | 1.71 – 1.74 |
| Maximum payout                      |                           | $9.72             |
| Employee exit rate                  |                           | 2.2% - 9.0%       |

| (In thousands)                                                              |       | 2010 (1)                        |       | 2009   |        | 2008   |
|-----------------------------------------------------------------------------|--------------------------------|---------------------------------|--------------------------------|--------|---------------------------------|--------|
| Stock-based compensation expense before                                     |                           |                            |                           |   |                            |   |   |   |   |
|        the recognized income tax benefit |                           | $      | 483                            |   | $      | 751    |   | $      | 26 |
| Income tax benefit                                                          |                           | $                               | 183                            |   | $                               | 295    |   | $ | 9 |

| (1) |        | Income tax benefit was calculated using an adjusted effective tax rate. The adjusted rate removes the tax effects from the favorable resolution of certain tax positions. |
|-----|--------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                 |                           | First                           |                           | Second  |                            | Third   |                           | Fourth                          |
|--------------------------------------|--------------------------------|---------------------------------|--------------------------------|---------|---------------------------------|---------|--------------------------------|---------------------------------|
| Fiscal 2010                          |       | Quarter                         |       | Quarter |        | Quarter |       | Quarter                         |
| Net sales                            |                           | $      | 189,457                        |    | $      | 165,394 |                           | $      | 204,443 |   | $      | 179,895 |
| Gross profit                         |                           |                            | 59,272                         |    |                            | 46,747  |                           |                            | 61,510 |   |   | 54,010 |
| Operating income                     |                           |                            | 14,991                         |    |                            | 5,989   |                           |                            | 14,414 |   |   | 6,991 |
| Net income                           |                           |                            | 9,247                          |    |                            | 4,118   |                           |                            | 9,096 |   |   | 4,360 |
| Net income per share – Basic   |                           | $                               | 0.73                           |    | $                               | 0.32    |                           | $                               | 0.71 |   | $ | 0.34 |
| Net income per share – Diluted |                           | $                               | 0.72                           |    | $                               | 0.32    |                           | $                               | 0.70 |   | $ | 0.33 |
|                                 |                           |                            |                           |    |                            |    |                           |                            |   |   |   |   |
|                                 |                           | First                           |                           | Second  |                            | Third   |                           | Fourth                          |
| Fiscal 2009                          |                           | Quarter                         |                           | Quarter |                            | Quarter |                           | Quarter                         |
| Net sales                            |                           | $                               | 167,269                        |    | $                               | 152,840 |                           | $                               | 191,523 |   | $ | 170,790 |
| Gross profit                         |                           |                            | 46,640                         |    |                            | 40,924  |                           |                            | 57,099 |   |   | 48,943 |
| Operating income                     |                           |                            | 6,584                          |    |                            | 1,904   |                           |                            | 12,219 |   |   | 4,423 |
| Net income                           |                           |                            | 4,132                          |    |                            | 982     |                           |                            | 7,498 |   |   | 2,554 |
| Net income per share – Basic   |                           | $                               | 0.33                           |    | $                               | 0.08    |                           | $                               | .60 |   | $ | 0.20 |
| Net income per share – Diluted |                           | $                               | 0.33                           |    | $                               | 0.08    |                           | $                               | .59 |   | $ | 0.20 |

----

|                                     |                           | Balance at                      |                           | Charged to |                            | Credited to |                           | Balance at                      |
|------------------------------------------|--------------------------------|---------------------------------|--------------------------------|------------|---------------------------------|-------------|--------------------------------|---------------------------------|
| Descriptions                             |                           | Beginning                       |                           | Cost and   |                            | Costs and   |                           | End of                          |
| (In thousands)                           |       | of Period                       |       | Expenses   |        | Expenses    |       | Period                          |
| Year ended January 31, 2009              |                           |                            |                           |       |                            |        |                           |                            |   |   |   |   |
| Reserve for sales returns and allowances |                           | $      | 97                             |       | $      | 61,167      |                           | $      | 61,170 |   | $      | 94 |
| Inventory reserve                        |                           | $                               | 4,100                          |       | $                               | 650         |                           | $                               | 450 |   | $ | 4,300 |
|                                     |                           |                            |                           |       |                            |        |                           |                            |   |   |   |   |
| Year ended January 30, 2010              |                           |                            |                           |       |                            |        |                           |                            |   |   |   |   |
| Reserve for sales returns and allowances |                           | $                               | 94                             |       | $                               | 69,621      |                           | $                               | 69,609 |   | $ | 106 |
| Inventory reserve                        |                           | $                               | 4,300                          |       | $                               | 1,069       |                           | $                               | 1,269 |   | $ | 4,100 |
|                                     |                           |                            |                           |       |                            |        |                           |                            |   |   |   |   |
| Year ended January 29, 2011              |                           |                            |                           |       |                            |        |                           |                            |   |   |   |   |
| Reserve for sales returns and allowances |                           | $                               | 106                            |       | $                               | 80,337      |                           | $                               | 80,339 |   | $ | 104 |
| Inventory reserve                        |                           | $                               | 4,100                          |       | $                               | 352         |                           | $                               | 652 |   | $ | 3,800 |

| ITEM 9.  | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE |
|---------------|--------------------------------------------------------------------------------------|

- Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions  and dispositions of the assets of the Company;  
- Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial  statements in accordance with generally accepted accounting principles, and that receipts and expenditures  of the Company are being made only in accordance with authorizations of management and directors of the  Company; and  
- Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or  disposition of the Company’s assets that could have a material effect on the financial statements. 

----

----

----

| ITEM 12.  | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS |
|----------------|------------------------------------------------------------------------------------------------|

| ITEM 13.  | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE |
|----------------|---------------------------------------------------------------------------|

----

|                           | 1.     |                           | Financial Statements:                                                                                                                                                                    |
|--------------------------------|--------|--------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|       |   |       |                                                                                                                                                                                     |
|                           |   |                           | The following financial statements of Shoe Carnival, Inc. are set forth in PART II, ITEM 8 of this report:                                                                               |
|                           |   |
|                           |   |                           | Report of Independent Registered Public Accounting Firm                                                                                                                                  |
|                           |   |
|                           |   |                           | Consolidated Balance Sheets at January 29, 2011 and January 30, 2010                                                                                                                     |
|                           |   |
|                           |   |                           | Consolidated Statements of Income for the years ended January 29, 2011, January 30, 2010, and January 31, 2009                                                                           |
|                           |   |
|                           |   |                           | Consolidated Statements of Shareholders’ Equity for the years ended January 29, 2011, January 30, 2010, and January 31, 2009                                                       |
|                           |   |
|                           |   |                           | Consolidated Statements of Cash Flows for the years ended January 29, 2011, January 30, 2010, and January 31, 2009                                                                       |
|                           |   |
|                           |   |                           | Notes to Consolidated Financial Statements                                                                                                                                               |
|                           |   |
|                           | 2.     |                           | Financial Statement Schedule:                                                                                                                                                            |
|                           |   |
|                           |   |                           | The following financial statement schedule of Shoe Carnival, Inc. is set forth in PART II, ITEM 8 of this report.                                                                        |
|                           |   |
|                           |   |                           | Schedule II Valuation and Qualifying Accounts                                                                                                                                            |
|                           |   |
|                           | 3.     |                           | Exhibits:                                                                                                                                                                                |
|                           |   |
|                           |   |                           | A list of exhibits required to be filed as part of this report is set forth in the Index to Exhibits, which immediately precedes such exhibits, and is incorporated herein by reference. |

----

| Date: April 14, 2011 |   | By:  | /s/ Mark L. Lemond                    |
|----------------------|--------|-----------|---------------------------------------|
|                 |   |      | Mark L. Lemond                        |
|                 |   |      | President and Chief Executive Officer |

| Signature              |       | Title                                              |       | Date           |
|------------------------|--------------------------------|----------------------------------------------------|--------------------------------|----------------|
| /s/ J. Wayne Weaver    |                           | Chairman of the Board and Director                 |                           | April 14, 2011 |
| J. Wayne Weaver        |                           |                                               |                           |           |
|                   |                           |                                               |                           |           |
| /s/ Mark L. Lemond     |                           | President, Chief Executive Officer and Director    |                           | April 14, 2011 |
| Mark L. Lemond         |                           | (Principal Executive Officer)                      |                           |           |
|                   |                           |                                               |                           |           |
| /s/ William E. Bindley |                           | Director                                           |                           | April 14, 2011 |
| William E. Bindley     |                           |                                               |                           |           |
|                   |                           |                                               |                           |           |
| /s/ Gerald W. Schoor   |                           | Director                                           |                           | April 14, 2011 |
| Gerald W. Schoor       |                           |                                               |                           |           |
|                   |                           |                                               |                           |           |
| /s/ Kent A. Kleeberger |                           | Director                                           |                           | April 14, 2011 |
| Kent A. Kleeberger     |                           |                                               |                           |           |
|                   |                           |                                               |                           |           |
| /s/ W. Kerry Jackson   |                           | Executive Vice President - Chief Financial Officer |                           | April 14, 2011 |
| W. Kerry Jackson       |                           | and Treasurer (Principal Financial Officer)        |                           |           |
|                   |                           |                                               |                           |           |
| /s/ Kathy A. Yearwood  |                           | Senior Vice President – Controller and Chief |                           | April 14, 2011 |
| Kathy A. Yearwood      |                           | Accounting Officer (Principal Accounting Officer)  |                           |           |

----

|    |                           |                                                                                                                                                                                              |                           | Incorporated by Reference To |                           |    |
|---------|--------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|------------------------------|--------------------------------|---------|
| Exhibit |                           |                                                                                                                                                                                              |                           |                         |                           |    |   | Filing |   | Filed |
| No.     |       | Description                                                                                                                                                                                       |       | Form                         |       | Exhibit |       | Date |       | Herewith |
| 3-A     |                           | Restated Articles of Incorporation of Registrant                                                                                                                                                  |                           | 10-K                         |                           | 3-A     |   | 4/25/2002 |   |   |
|    |                           |                                                                                                                                                                                              |                           |                         |                           |    |   |   |   |   |
| 3-B     |                           | By-laws of Registrant, as amended to date                                                                                                                                                         |                           | 10-Q                         |                           | 3-B     |   | 12/09/2010 |   |   |
|    |                           |                                                                                                                                                                                              |                           |                         |                           |    |   |   |   |   |
| 4-B     |                           | Credit Agreement, dated as of January 20, 2010, among Shoe Carnival, Inc., the financial institutions from time to time party thereto as Banks, and Wachovia Bank, National Association, as Agent |                           | 8-K                          |                           | 4.1     |   | 1/25/2010 |   |   |
|    |                           |                                                                                                                                                                                              |                           |                         |                           |    |   |   |   |   |
| 10-A    |                           | Lease, dated as of February 8, 2006, by and between Registrant and Big-Shoe Properties, LLC                                                                                                       |                           | 10-K                         |                           | 10-A    |   | 4/13/2006 |   |   |
|    |                           |                                                                                                                                                                                              |                           |                         |                           |    |   |   |   |   |
| 10-B*   |                           | 2006 Executive Incentive Compensation Plan                                                                                                                                                        |                           | 8-K                          |                           | 10-B    |   | 6/15/2006 |   |   |
|    |                           |                                                                                                                                                                                              |                           |                         |                           |    |   |   |   |   |
| 10-C*   |                           | Form of Award Agreement for restricted stock granted under the Shoe Carnival, Inc. 2000 Stock Option and Incentive Plan                                                                           |                           | 8-K                          |                           | 10-C    |   | 3/24/2005 |   |   |
|    |                           |                                                                                                                                                                                              |                           |                         |                           |    |   |   |   |   |
| 10-D    |                           | Lease, dated as of June 22, 2006, by and between the Registrant and Outback Holdings, LLC                                                                                                         |                           | 8-K                          |                           | 10-D    |   | 6/28/2006 |   |   |
|    |                           |                                                                                                                                                                                              |                           |                         |                           |    |   |   |   |   |
| 10-E*   |                           | 1993 Stock Option and Incentive Plan of Registrant, as amended                                                                                                                                    |                           | 10-Q                         |                           | 10-E    |   | 9/15/1997 |   |   |
|    |                           |                                                                                                                                                                                              |                           |                         |                           |    |   |   |   |   |
| 10-G*   |                           | Outside Directors Stock Option Plan                                                                                                                                                               |                           | S-8                          |                           | 4.4     |   | 7/14/1999 |   |   |
|    |                           |                                                                                                                                                                                              |                           |                         |                           |    |   |   |   |   |
| 10-H*   |                           | Summary Compensation Sheet                                                                                                                                                                        |                           |                         |                           |    |   |   |   | X |
|    |                           |                                                                                                                                                                                              |                           |                         |                           |    |   |   |   |   |
| 10-I    |                           | Non-competition Agreement dated as of January 15, 1993, between Registrant and J. Wayne Weaver                                                                                                    |                           | S-1                          |                           | 10-I    |   | 2/4/1993 |   |   |
|    |                           |                                                                                                                                                                                              |                           |                         |                           |    |   |   |   |   |
| 10-L*   |                           | Employee Stock Purchase Plan of Registrant, as amended                                                                                                                                            |                           | 10-Q                         |                           | 10-L    |   | 9/15/1997 |   |   |
|    |                           |                                                                                                                                                                                              |                           |                         |                           |    |   |   |   |   |
| 10-M*   |                           | Form of Notice of Grant of Stock Options and Option Agreement for incentive stock options granted under the Registrant's 2000 Stock Option and Incentive Plan                                     |                           | 8-K                          |                           | 10-A    |   | 9/2/2004 |   |   |
|    |                           |                                                                                                                                                                                              |                           |                         |                           |    |   |   |   |   |
| 10-N*   |                           | Form of Notice of Grant of Stock Options and Option Agreement for non-qualified stock options granted under the Registrant’s 2000 Stock Option and Incentive Plan                           |                           | 8-K                          |                           | 10-B    |   | 9/2/2004 |   |   |
|    |                           |                                                                                                                                                                                              |                           |                         |                           |    |   |   |   |   |
| 10-O*   |                           | 2000 Stock Option and Incentive Plan of Registrant, as amended                                                                                                                                    |                           | 10-Q                         |                           | 10-O    |   | 12/09/2010 |   |   |
|    |                           |                                                                                                                                                                                              |                           |                         |                           |    |   |   |   |   |
| 10-S*   |                           | Amended and Restated Employment and Noncompetition Agreement dated December 11, 2008, between Registrant and Mark L. Lemond                                                                       |                           | 8-K                          |                           | 10-S    |   | 12/17/2008 |   |   |
|    |                           |                                                                                                                                                                                              |                           |                         |                           |    |   |   |   |   |
| 10-T*   |                           | Amended and Restated Employment and Noncompetition Agreement dated December 11, 2008, between Registrant and Timothy Baker                                                                        |                           | 8-K                          |                           | 10-T    |   | 12/17/2008 |   |   |

----

|    |                           |                                                                                                                                                                                       |                           | Incorporated by Reference To |                           |    |
|---------|--------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|------------------------------|--------------------------------|---------|
| Exhibit |                           |                                                                                                                                                                                       |                           |                         |                           |    |   | Filing |   | Filed |
| No.     |       | Description                                                                                                                                                                                |       | Form                         |       | Exhibit |       | Date |       | Herewith |
| 10-U*   |                           | Amended and Restated Employment and Noncompetition Agreement dated December 11, 2008, between Registrant and Clifton E. Sifford                                                            |                           | 8-K                          |                           | 10-U    |   | 12/17/2008 |   |   |
|    |                           |                                                                                                                                                                                       |                           |                         |                           |    |   |   |   |   |
| 10-V*   |                           | Amended and Restated Employment and Noncompetition Agreement dated December 11, 2008, between Registrant and W. Kerry Jackson                                                              |                           | 8-K                          |                           | 10-V    |   | 12/17/2008 |   |   |
|    |                           |                                                                                                                                                                                       |                           |                         |                           |    |   |   |   |   |
| 10-W*   |                           | Shoe Carnival, Inc. Deferred Compensation Plan                                                                                                                                             |                           | 8-K                          |                           | 10-W    |   | 10/14/2008 |   |   |
|    |                           |                                                                                                                                                                                       |                           |                         |                           |    |   |   |   |   |
| 10-X*   |                           | Employment and Noncompetition Agreement dated April 7, 2011, between Registrant and Kathy A. Yearwood                                                                                      |                           |                         |                           |    |   |   |   | X |
|    |                           |                                                                                                                                                                                       |                           |                         |                           |    |   |   |   |   |
| 21      |                           | A list of subsidiaries of Shoe Carnival, Inc                                                                                                                                               |                           |                         |                           |    |   |   |   | X |
|    |                           |                                                                                                                                                                                       |                           |                         |                           |    |   |   |   |   |
| 23      |                           | Written consent of Deloitte & Touche LLP                                                                                                                                               |                           |                         |                           |    |   |   |   | X |
|    |                           |                                                                                                                                                                                       |                           |                         |                           |    |   |   |   |   |
| 31.1    |                           | 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 |                           |                         |                           |    |   |   |   | X |
|    |                           |                                                                                                                                                                                       |                           |                         |                           |    |   |   |   |   |
| 31.2    |                           | 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 |                           |                         |                           |    |   |   |   | X |
|    |                           |                                                                                                                                                                                       |                           |                         |                           |    |   |   |   |   |
| 32.1    |                           | 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                                          |                           |                         |                           |    |   |   |   | X |
|    |                           |                                                                                                                                                                                       |                           |                         |                           |    |   |   |   |   |
| 32.2    |                           | 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                                          |                           |                         |                           |    |   |   |   | X |

| * |        | The indicated exhibit is a management contract, compensatory plan or arrangement required to be filed by Item 601 of Regulation S-K. |
|---|--------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------|

----