Houston–Stage Stores has lifted its full-year outlook after its third-quarter net loss narrowed on the back of higher sales.
For the quarter ended Oct. 27, the parent to Bealls, Goody’s and Palais Royal posted Thursday a net loss of $8.9 million, or 28 cents a share, compared to $11.3 million, or 36 cents a share, in the same quarter last year.
Net revenue rose 11% to $371 million with comparable store sales jumping 8.1% helped by growth in all merchandise categories and regions. Gross margin widened to 21.6% from 21.3%.
The results were better than analysts’ average estimate expected: a per-share loss of 30 cents on sales of $360.59 million.
“The third quarter was another outstanding quarter for our company as sales grew, our bottom-line improved and notable progress was made on our strategic initiatives,” said Michael Glazer, president. “Our direct-to-consumer sales increased 66% over last year and we expect this business to exceed $25 million in sales for the year. In addition, our new store growth continued as we opened ten traditional stores and nine Steele’s stores.”
Stage Stores also raised its full year forecast to adjusted earnings between $1.20 to $1.28 a share on sales of $1.63 billion to $1.65 billion with comparable store sales increasing 4.5% to 5.5%. Previously the company forecast its full year at $1.15 to $1.25 a share with comparable store sales up 2.5% to 3.5%.
Analysts’ consensus expects earnings of $1.17 a share.