Stage Stores, Inc. reported that its total sales for the four-week July period ended August 1 decreased 10.1% to $97 million from $108 million in the prior year four week period ended August 2, 2008.  Comparable store sales decreased 11.9% this year on top of a decrease of 6.2% last year.


While comparable store sales for all families of business were negative in July, the feminine apparel categories continued to outperform the company average. With regard to region of the country, the Mid Atlantic was the company’s best performing region during the month. Several regions were negatively impacted by the shift in the timing of a number of state sales tax holidays from July last year to August this year.


For the second quarter, the company reported that total sales decreased 8.3% to $342 million from $373 million last year. Comparable store sales for the quarter decreased 10.7% versus a decrease of 1.4% in the prior year period.


 


Andy Hall, President and Chief Executive Officer, commented, “Our July comparable store sales performance reflects our reduced clearance levels and the shift in the timing of ten state sales tax holidays.”


Mr. Hall continued, “Despite the challenging business environment, we effectively controlled inventories and expenses throughout the quarter. Based on the strength of our merchandise margins and our strong expense controls, we are projecting EPS for the second quarter of $0.23, which is within our guidance range for the quarter of $0.20 to $0.27.”


Store Activity
The company did not open any new stores during July. The company closed a Bealls store in Espanola, NM. For the second quarter, no new stores were opened and 4 stores were closed.


Looking forward, the company expects to open 16 to 17 new stores during the second half of the year. The company noted that most of these new stores will be opened under the Goody’s name, which the company acquired through the Goody’s bankruptcy auction.