Houston—Stung by fallout from the weak oil and gas markets, Stage Stores Inc. reported today worse-than-expected third quarter results.
For the three months ended Oct. 31, the parent to Peebles, Bealls, Goody’s etc. posted a loss of $10.2 million, or 32 cents a share, down from a loss of $5.3 million, or 17 cents a share, a year earlier. On an adjusted basis, the company posted a loss of 29 cents, compared with a loss of 16 cents a year earlier. Analysts had expected an adjusted loss of 19 cents.
Net sales were down 3.5% to $351.6 million from $364.2 million a year earlier. Comparable store sales were also down 3.5%. Analysts had expected sales of $359 million.
Stage Stores said results were hardest hit by the slump in oil prices, including Texas, Louisiana, Oklahoma and New Mexico. Moreover the slide of the Mexican peso also was to blame.
Lower Comp Forecasted
“Our third quarter results were negatively impacted by stores located in geographies which were pressured by oil and gas and a devalued peso. Stores outside of those areas achieved a flat comp for the quarter,” said Michael Glazer, president/ceo.
“Based on these results and our expectation that these challenges will continue in the near term, we are guiding our comp sales to a range of -2% to -4% for the fourth quarter and adjusted earnings per diluted share to 70 to 80 cents for the fiscal year,” Glazer added. “We will manage our business with discipline around inventory control, implement additional cost reductions and maintain our focus on improving store productivity and driving online sales. Overall, we continue to believe that our strategic initiatives around e-commerce, an increased emphasis on merchandise style and value, a rationalized store base, store remodels, and rejuvenated marketing programs will better position us for sustainable long-term growth.”
In August, Stage Stores cut its full year to an adjusted range between $1.05 and $1.15
The company also announced today that it was resuming a $200 million share-repurchase authorization started in 2011. Stage has roughly half remaining.
Stage operates 847 stores under five names, including Goody’s, Bealls, Palais Royal, Peebles and Stage brands, primarily in small and midsize markets.