Skip to main content

Stage Stores Reports 3Q Loss

11/20/2008

Houston Stage Stores reported a loss for the third quarter ended Nov. 1, due to an impairment charge of $95.4 million and hurricane-caused losses.

The clothing and accessories retailer recorded a 3Q loss of $102.8 million, compared to a year-ago profit of $2.4 million.

Sales for the third quarter were $333.8 million, down 6% from $355.1 million for the same time frame last year.

Same-store sales decreased 10.3% for the quarter, compared to a drop of 1.0% last year. The company estimates this drop would have been 7.6% if it was not impacted by Hurricanes Gustav and Ike.

“While we are disappointed with our financial results, we are pleased with our accomplishments regarding the management of our inventory levels and expenses,” said Andy Hall, the chain’s president and CEO. “At quarter end, our inventories were down approximately 13.0% on a comparable store basis, and our SG&A expenses for the third quarter were $2.2 million below last year despite operating 44 more stores.”

Despite the company’s losses, Stage Stores’ year-to-date cash flow from operating activities exceeded 2007 by $33.0 million.

“Additionally, we will end fiscal 2008 with less debt than we ended fiscal 2007 while opening 56 new stores and a new distribution center,” Hall said.

The company will moderate its 2009 store openings to between 30 and 40 units. “This will allow us to reduce next year’s capital expenditures to $55.0 million compared to this year’s expected capital spend of approximately $80.0 million,” he said.

X
This ad will auto-close in 10 seconds