Stage Stores Misses Q2 Views

reported weaker-than-expected earnings for the second quarter and lowered its forecast for the full year. The Houston, Texas-based company reported a quarterly profit of $1.6 million, or $0.05 per share, compared to $11.2 million, or $0.35 per share, in the year-earlier period. Excluding non-recurring items, the company's earnings came in at $0.22 per share. Its revenue rose 0.9 percent year-over-year to $380.9 million from $377.4 million. However, analysts were expecting earnings of $0.34 per share on revenue of $384.63 million. The average estimate among 3 Estimize users was for earnings of $0.35 per share and revenue of $386.11 million. Its comparable sales rose 0.8 percent during the quarter. "While we delivered a positive comp, second quarter earnings fell short of our expectation," said Michael Glazer, President and Chief Executive Officer. "We were challenged by the impact of a weaker peso and economic softness in parts of Texas, Louisiana, Oklahoma, and New Mexico." Mr. Glazer added, "During the second quarter, we continued to make progress on our strategic initiatives including the expansion of our omni-channel presence, achieving direct-to-consumer growth of 21%. We are also increasing our emphasis on trends and style, improving our store environment and strengthening our connection to our customers." The company announced a multi-year plan to close around 90 underperforming stores. For the full year, Stage Stores now projects earnings of $1.05 to $1.15 per share, versus prior forecast of $1.20 to $1.28 per share. The company now expects comparable sales to be flat, versus prior range of flat to 2 percent. Stage Stores shares declined 1.29 percent to close at $16.90 yesterday.