Stage Stores Inc. on Thursday announced that, following strong results for both the nine off-price conversions completed in 2018 and the 37 off-price conversions completed in the first quarter of 2019, the company is accelerating and expanding the rollout of its off-price growth strategy.
The 35 second-quarter conversions, which were previously planned for back-to-school, will now be completed in June, and an additional 10 to 15 stores will be converting in the third quarter. With approximately 85 total conversions in 2019, the company now expects to end the year with approximately 150 off-price stores along with an additional 150 off-price conversions planned for the first half of fiscal 2020.
“We are extremely pleased with the initial sales results in our March off-price conversions. They have clearly exceeded our expectations and have continued the momentum that began with our 2018 converted stores,” said Michael Glazer, president and CEO. “Notably, through mid-March, sales in our 2018 small market conversions have increased more than 150 percent since they were converted compared to their department store results.
“Based on the strong results we have seen across our converted store base, we are thrilled to further accelerate and expand our off-price growth strategy. We now expect to enter the second half of 2020 with more than 300 Gordmans off-price stores, which will represent approximately half our total sales volume. With higher sales, improving store profitability, and faster inventory turns, our off-price strategy bodes well for our earnings and cash flow performance.”
Inclusive of the acceleration and expansion of the off-price conversion strategy, the company is reaffirming its previously announced guidance for sales, earnings, and capital.
