Stage Stores March Comps Drop 10.3%

Stage Stores, Inc. reported total sales for the five week March period decreased 6.6% to $141.1 million from $151.0 million for the prior year period. Comparable store sales decreased 10.3% this year versus an increase of 12.4% last year.

Jim Scarborough, chairman and CEO, commented, “We had anticipated that our comparable store sales for March would be negative due to the Easter calendar shift. However, it is also apparent that weakening economic conditions contributed to the incremental softness in our business.

“While we still believe that our April sales should benefit from the Easter calendar shift, we do not expect that economic conditions will improve noticeably during the month, and as a result, we are now projecting that our comparable store sales for the first quarter will be down in the mid single digits. In addition, we are reducing our original gross margin assumptions, reflecting the impact of our efforts to drive sales in this currently tough retail environment. As a result of our revised comparable store sales and gross margin projections, we are also reducing our expected earnings for the first quarter to be in a range of $0.05 to $0.08 per diluted share, vs. our previous guidance of flat to negative low single digit comps, and earnings of $0.13 to $0.16 per diluted share,“ Mr. Scarborough concluded.

Store Activity

During March, the company opened new Stage stores in Winslow, AZ and Arkadelphia, AR, and opened new Peebles stores in Washington, IN, Mt. Vernon, OH, Fulton, MS, and Norwich, NY. The company stated that it was opening an additional six new stores today, which brings the total number of new stores that have been opened during the first quarter to thirteen.