Stage Stores Inc. registered among the biggest earnings “misses” of the second-quarter retail cycle and brought down its full-year estimates.
Shares slid $1.02, or 5.5 percent, to $17.48 in midday trading Thursday on the New York Stock Exchange and hit a 52-week low of $17.19 earlier in the day.
For the three months ended Aug. 2, the Houston-based operator of the Stage, Bealls, Goody’s, Palais Royal and Peebles nameplates reported net income of $11.2 million, or 35 cents a diluted share. This was 16.5 percent higher than the $9.6 million, or 29 cents, registered in the 2013 quarter, when it incurred charges for discontinued operations, but was 17 cents below the consensus estimate of analysts of 52 cents. Sales also fell short of estimates, retreating 3.2 percent to $377.4 million from $390 million and more than $20 million below the consensus estimate of $397.6 million. Comparable-store sales fell 4.2 percent while gross margin grew to 29.8 percent of sales from 29.6 percent in the year-ago period.
“We found the second quarter to be challenging, but we were encouraged that our sales trend improved towards the end of the quarter,” said Michael Glazer, president and chief executive officer. “We were pleased with the performance of our back-to-school categories as well as cosmetics, which delivered another strong quarterly performance.”
He said the positive momentum seen in the final two weeks of July “has continued into August” and that inventories, up 2.1 percent from year-ago levels overall, were flat on a comparable-store basis.
Glazer said initiatives to drive sales — including a new fixture program, additional space and brands in cosmetics and an effort to upgrade the stores’ home assortments — are expected to help results in the back half of the year, as will an upgrade of the firm’s e-commerce efforts.
While reiterating its expectations for full-year comps that are expected to be flat to up 2 percent, Stage brought down its earnings per share to $1.05 to $1.15 from earlier guidance of $1.25 to $1.35. Revenues, originally projected to hit $1.64 billion to $1.67 billion, are estimated to finish the year at between $1.61 billion and $1.625 billion.
Year-to-date, Stage recorded a net loss of $7.6 million, or 24 cents a diluted share, versus net income of $2.8 million, or 8 cents, in the first six months of 2013. Revenues dropped 1.7 percent to $749.5 million from $762.1 million. Stage incurred charges for discontinued operations for both periods.
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia
Azzedine Alaïa's “I-did-it-my-way” ethos stood out starkly at a time when brands are experimenting with consumer-facing fashion shows, coed formats and trans-seasonal collections – anything to perk up lackluster sales of ready-to-wear in an age of Insta-everything. “It’s not creation anymore. This becomes a purely industrial approach,” the late designer told WWD in an interview last year. “But anyway, the rhythm of collections is so stupid. It’s unsustainable. There are too many collections.” Read more about the iconic designer’s life and work on wwd.com, link in bio. #wwdfashion #azzedinealaia (📷: @WWD Archive, 1986) #alaia
Sneaker reselling app @goat’s latest exhibit, "The Greatest: New York," tells the story of New York's sneaker culture. To celebrate the exhibit, an intimate crowd gathered on Thursday night at the pop-up gallery space, located at Platform in Culver City, to hear guest speaker and illustrator @esymai talk about her own rise in streetwear and women in the business. "For me I'm just someone who is creative. I like to create things," said Chang. #wwdfashion
Azzedine Alaïa, one of the most iconic couturiers of the modern era whose body-con designs defined Eighties fashion, has died in Paris. The diminutive Tunisian-born designer, known for his structured knitted dresses with fitted waists and impeccably cut, figure-hugging second skin silhouettes was deeply admired by his peers, and counted supermodel Naomi Campbell - his adoptive daughter - among his inner circle, one of a gang of glamazons including Farida Khelfa, Carla Bruni and Stephanie Seymour who became ambassadors of his style. (📷: Alexandre Guirkinger) #wwdblast