Stage Stores Stock Hammered For Failing To Deliver Estimated Q1 Results And Downbeat Forecast

Stage Stores, Inc.

has to bear the brunt of the investors' sentiments after the company's results failed to meet the estimated numbers. Its outlook for the current year also fell below the expectations. Following this, the stock plunged more than 14 percent in the pre-market trading on Thursday. The company reported a net loss of $15.5 million or a loss of $0.56 a share in the first quarter, which was wider than a net loss of $8.4 million or a loss of $0.27 a share in the year-ago quarter. On an adjusted basis too, the net loss was wider at $15.1 million or a loss of $0.56 per share than a loss of $0.26 per share in the prior year. Stage Stores said that its total sales fell 9.9 percent to $332.8 million from $369.3 million in the previous year quarter. Its comparable sales fell 8.5 percent. Street analysts estimated a loss of $0.47 a share on revenue of $346.25 million. The company's President and CEO, Michael Glazer, said, "Our first quarter results were hurt by our Texas, Louisiana, Oklahoma, and New Mexico stores, due to the impact of depressed oil prices and the weak peso, as well as a challenging retail environment. Excluding stores in these four states, our comparable sales declined 3.8%." He continued to add that "We expect these macro factors will weigh on our sales performance in the near-term and we are reducing our expenses, inventories, and capital spending. We continue to plan the business for the long-term, investing in our stores, growing our omnichannel business, and improving our merchandising and marketing. While reinvesting in our business, we are focused on generating positive cash flows and delivering value to our shareholders through our dividend." Going forward, Stage Stores expect adjusted earnings to be $0.20 - $0.40 a share with comparable store sales expected to drop 4 – 6 percent in the current year. Analysts' estimated the company to deliver earnings of $0.45 a share. The stock plunged 14.8 percent in the pre-market trading on Thursday.