Stage Stores Inc. called out the unseasonably cold weather and hefty charges it incurred from consolidating facilities for its wider-than-expected first-quarter loss Friday morning.
The department store lost $6.9 million, or 21 cents a diluted share in the quarter ended May 4, compared with a year-ago loss of $418,000, or a penny a share.
Stripping out charges related to consolidation, Stage logged a two-cent a share loss, which fell short of analysts’ expectations of a nine-cent profit for the quarter.
Net sales for the period increased 3.5 percent to $378.6 million from $365.7 million, a year earlier. Comparable-store sales for thequarter rose 0.7 percent.
“The unseasonably cool weather in March and April, particularly when compared to last year’s warm spring, strongly impacted our sales performance. We managed our inventory aggressively and ended the quarter in a clean inventory position,” said president and chief executive officer Michael Glazer. “We believe sales in the second quarter will benefit from pent-up demand for seasonal merchandise as temperatures normalize.”
The Houston-based retailer still anticipates full-year adjusted earnings of $1.45 to $1.55 a share on revenue of between $1.7 billion and $1.73 billion.
Wall Street is looking for annual EPS of $1.55 on sales of $1.72 billion.