Warm weather no excuse for weakness at Stage Stores

After reporting a sales decline and third quarter loss, Stage Stores offered a unique explanation due the location of its 847 stores.



The company’s sales and same store sales both declined 3.5% and a net loss of $9.4 million equated to an earnings per share loss of 29 cents, compared to a prior year earnings per share loss of 16 cents.



“Our third quarter results were negatively impacted by stores located in geographies which were pressured by oil and gas and a devalued peso. Stores outside of those areas achieved a flat comp for the quarter,” said Michael Glazer, president and CEO of Stage Stores.



The company’s stores are typically located in small towns located in 40 states and operate under the banners of Bealls, Goody’s, Palais Royal, Peebles and Stage.



“Based on (the third quarter) results and our expectation that these challenges will continue in the near term, we are guiding our comp sales to a range of -2% to -4% for the fourth quarter and adjusted earnings per diluted share to 70 cents to 80 cents for the fiscal year.,” Glazer said. “We will manage our business with discipline around inventory control, implement additional cost reductions and maintain our focus on improving store productivity and driving online sales. Overall, we continue to believe that our strategic initiatives around e-commerce, an increased emphasis on merchandise style and value, a rationalized store base, store remodels, and rejuvenated marketing programs will better position us for sustainable long-term growth.”



Total sales during the period decreased 3.5% to $351.6 million for the third quarter, as compared to $364.2 million in the prior year period. Comparable sales decreased 3.5%.