Stage Stores expects flat FY comps

HOUSTON Stage Stores today reported net income for the second quarter ended Aug. 4 of $9.9 million, or 23 cents per diluted share, compared to $3.9 million, or 9 cents per diluted share, for the prior year second quarter ended July 29, 2006.

Sales for the second quarter were $359.2 million versus sales of $362.1 million last year. Comparable-store sales for the second quarter grew 0.5% versus an increase of 4.5% in the same period last year.

Total sales for the six-month period ended Aug. 4, were $717.4 million versus $705.6 million for the prior year six-month period ended July 29, 2006. Net income for the six-month period was $19 million, or 43 cents per diluted share, compared to $12.9 million, or 30 cents per diluted share, last year.

Jim Scarborough, chairman and ceo of Stage Stores commented, "Based on our relatively flat comparable-store sales performance during the first half of the year, we have taken a more conservative approach in forecasting our comparable-store sales for the last two quarters of the year. We are currently forecasting that our comparable-store sales will be essentially flat for the back half of the year, and therefore, for the full year as well. Our revised sales and earnings guidance reflects our more conservative view. By forecasting flat comps, we believe that we will be able to tightly manage both our inventory levels and our expenses, just as we did in the second quarter, and still have the ability to react quickly by flowing in additional goods to build up our stocks should our sales exceed our expectations."