Dow Jones Newswires
Stage Stores Inc. swung to a loss in the fiscal first quarter amid disappointing sales and increased promotions to attract consumers who have been making fewer shopping trips.
For the current quarter, the Stage Stores expects per-share earnings of 28 cents to 31 cents on revenue of $355 million to $362 million, while analysts polled by Thomson Reuters most recently projected 33 cents and $361 million, respectively. It affirmed its guidance for the year.
President and Chief Executive Andy Hall said an unexpected decline in February sales led the company to increase promotions in March and April in an effort to make up the shortfall.
Retailers have been reporting that high gasoline prices are leading consumers to make fewer shopping trips, weighing on sales. Harsh winter weather also hurt customer traffic at many retailers.
Stage Stores--which sells brand-name clothes, cosmetics and footwear in small and mid-size towns across the U.S.--had been improving its bottom line on better margins over the past year or so. However, in the latest period, gross margin slid to 24.6% from 26.4%.
For the quarter ended April 30, Stage Stores reported a loss of $461,000, or 1 cent share, from a year-earlier profit of $2.2 million, or 6 cents a share. The company recently reduced its forecast to a loss of 1 cent to 2 cents.
The company recently reported that fiscal first-quarter sales rose 2.1% to $347 million, but were up 3.3% excluding the impact of a later-than-usual Easter. Same-store sales edged up 0.2%.
Shares closed Wednesday at $17.12 and were inactive premarket. The stock is down 11% this month.
