Stage Stores (NASDAQ:STGS)
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Stage Stores, Inc. (Nasdaq:STGS) today reported that
total sales for the five-week period ended October 1, 2005 increased
0.7% to $98.5 million from $97.8 million in the prior year five-week
period ended October 2, 2004. Comparable store sales decreased 2.6%
versus an increase of 2.5% last year.
With regard to its major categories of business, the Company
reported that its accessories, cosmetics, junior sportswear, special
sizes and young men's departments all had comparable store sales
increases during September.
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*T
SALES SUMMARY
Comparable Store Sales Trend Total Sales
% Increase (Decrease) ($ in Millions)
--------------------- ---------------
Fiscal Period 2005 2004 2005 2004
------------- ---- ---- ---- ----
1st Quarter 4.9% 4.5% $310.1 $289.7
2nd Quarter 7.0 (3.2) 309.4 279.9
August 1.5 8.1 111.2 105.7
September (2.6) 2.5 98.5 97.8
3rd Qtr-To-Date (0.5) 5.3 209.7 203.5
Year-To-Date 4.2 1.8 829.2 773.1
*T
Jim Scarborough, Chairman, President and Chief Executive Officer,
commented, "September was an extremely challenging month as we
experienced two major Gulf Coast hurricanes, as well as unseasonably
hot weather, which was prevalent in our southern and eastern markets
throughout the month."
Mr. Scarborough continued, "The two hurricanes caused us to close
as many as 130 of our stores for various periods of time, and these
store closures combined with mandatory evacuation activities clearly
disrupted our normal store operations and customer traffic patterns.
Additionally, the hotter than normal weather that we experienced in
August continued throughout September and dampened enthusiasm for our
fall products. This resulted in a sales mix during September that was
comprised of a much higher percentage of clearance goods as compared
to last year."
Mr. Scarborough concluded, "As we move into Autumn, demand for our
fall and winter goods should grow with the onset of cooler weather,
and we feel confident in our ability to achieve a low, single-digit
comparable store sales increase in the fourth quarter."
Store Activity
The Company stated that, of the 118 stores originally reported
closed as a result of Hurricane Rita, only 9 remain closed. Of this
group, the Company expects that 6 of these stores will reopen in the
near future as power is restored in their respective areas. The
Company believes that the remaining 3 stores, which are located in
Orange and Port Arthur, TX, and Moss Bluff, LA, will not reopen until
March or April of next year. The Company further stated that it closed
its store in Chalmette, LA as a result of damage incurred from
Hurricane Katrina, and closed its store in Myrtle Beach, SC.
Accordingly, the company has removed all of these locations from its
comparable store sales base.
Looking forward, the Company continues to expect to open 8 new
stores in October, including its first store in Georgia, and 8 new
stores in November. These 16 new stores will bring the number of
stores opened during the year to 36.
Updated Guidance
Principally due to the issues highlighted above, the Company is
revising its guidance for the 2005 third and fourth quarters, as well
as for the fiscal year.
Fiscal 2005 - 3rd Quarter:
For the third quarter, the Company now anticipates that revenues
will be in a range of $294 to $298 million, with the expectation of a
slightly positive comparable store sales increase. Net income is
currently projected to be in the range of $7.4 to $8.2 million, or
earnings of $0.25 to $0.28 per diluted share, using an estimated
diluted share count of 29.5 million shares. This compares to the
Company's previously provided earnings guidance of $0.31 to $0.34 per
diluted share for the third quarter.
Fiscal 2005 - 4th Quarter:
For the fourth quarter, the Company now anticipates that revenues
will be in a range of $406 to $414 million, with the expectation of a
comparable store sales increase in the low single digits. Net income
is currently projected to be in the range of $18.5 to $19.5 million,
or earnings of $0.65 to $0.68 per diluted share, using an estimated
diluted share count of 28.6 million shares. This compares to the
Company's previously provided earnings guidance of $0.66 to $0.69 per
diluted share for the fourth quarter.
Fiscal 2005 - Full Year:
Adjusting its 2005 full year outlook to reflect its updated third
and fourth quarter guidance, the Company now anticipates that revenues
will be in a range of $1.319 to $1.331 billion, with the expectation
of a comparable store sales increase in the upper low single digits.
Net income is currently projected to be in the range of $52.9 to $54.7
million, or earnings of $1.80 to $1.86 per diluted share, using an
estimated diluted share count of 29.4 million shares. This compares to
the Company's previously provided earnings guidance of $1.87 to $1.93
per diluted share for the fiscal year.
About Stage Stores
Stage Stores, Inc. brings nationally recognized brand name
apparel, accessories, cosmetics and footwear for the entire family to
small and mid-size towns and communities through 543 stores located in
30 states. The Company operates under the Bealls, Palais Royal and
Stage names throughout the South Central states, and under the Peebles
name throughout the Mid-Atlantic, Southeastern and Midwestern states.
For more information about Stage Stores, visit the Company's web site
at www.stagestores.com.
"Safe Harbor" Statement
This news release contains "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995,
including comments regarding the Company's outlook and expectations
for the third quarter of the 2005 fiscal year, the fourth quarter of
the 2005 fiscal year and for the entire 2005 fiscal year, comments
regarding the timing of reopening of closed stores and comments
regarding the Company's store opening plans for October and November.
The Company intends forward looking terminology such as "believes",
"expects", "may", "will", "should", "could", "anticipates", "plans" or
similar expressions to identify forward-looking statements. Such
statements are subject to certain risks and uncertainties which could
cause the Company's actual results to differ materially from those
anticipated by the forward-looking statements. These risks and
uncertainties include, but are not limited to, those described in the
Company's Annual Report on Form 10-K as filed with the Securities and
Exchange Commission (the "SEC") on April 28, 2005, in the Company's
Quarterly Reports on Form 10-Q as filed with the SEC and other factors
as may periodically be described in other Company filings with the
SEC.