Stage Stores Inc.’s stock plummeted 19.6 percent after the company’s third-quarter losses widened and stores in communities tied to the oil and gas industry or exposed to the peso faltered.
Shares of the firm were down $1.77 to $7.27 after 30 minutes of trading on Wall Street, leaving Stage Stores with market capitalization of about $232 million.
The Houston-based company, which has 847 doors in smaller markets, said its net losses expanded to $10.2 million, or 32 cents share, from $5.3 million, or 17 cents, a year earlier. Sales for the three months ended Oct. 31 fell 3.5 percent to $351.6 million from $364.2 million. Comparable-store sales also declined 3.5 percent.
“Our third-quarter results were negatively impacted by stores located in geographies which were pressured by oil and gas and a devalued peso,” said Michael Glazer, president and chief executive officer. “Stores outside of those areas achieved a flat comp for the quarter.”
Glazer said the challenges, which have also hit other retailers, would continue for the near-term and projected that comp sales would fall 2 percent to 4 percent in the fourth quarter.
“We will manage our business with discipline around inventory control, implement additional cost reductions and maintain our focus on improving store productivity and driving online sales,” he said. “Overall, we continue to believe that our strategic initiatives around e-commerce, an increased emphasis on merchandise style and value, a rationalized store base, store remodels and rejuvenated marketing programs will better position us for sustainable long-term growth.”