Stage Stores Inc.'s same-store sales slid 12.6% in June. Total sales for the period ended July 4 fell 10.1% to $128 million from $142 million.
Andy Hall, president and CEO, commented, “June was a disappointing month as the economic environment remained challenging. We continued to focus on those aspects of our business that we can control and ended the month with comparable store inventories down 13%. Our financial strength remained intact, and we had no borrowings on our $250 million revolving credit facility at month-end.”
Hall continued, “On July 3, 2009, we took advantage of our financial strength by acquiring the Goody's name through their bankruptcy auction. We intend to use the Goody's name in select new store markets in which there is a stronger customer awareness of the Goodys name. We have identified approximately 50 former Goody's markets that meet our small town business model criteria of being under-served with minimal competition. All of our new stores, regardless of nameplate, will utilize our current merchandising concepts and format. We are excited to have the flexibility to use the Goody's name where appropriate.”
The company said cosmetics were its strongest category during the month, with the South Central region recording the best sales results.
Stage Stores did not open any new stores in the month and closed two Peebles stores and a Palais Royal store during the period. It does not plan to open any new stores in July, but does anticipate opening 14 to 16 new stores in the last half of the year.
Stage Stores currently runs 744 stores in 39 states under Bealls, Palais Royal, Peebles and its namesake brand.
