Stage Stores posts 6.2% Q2 profit drop

US: Stage Stores posts 6.2% Q2 profit drop

By just-style.com | 21 August 2009

Q2 profit falls 6.2% to $9.1m
Sales down 8.3% to $341.74m
Lifts low end of its FY profit guidance range

Even though falling sales have pushed Stage Stores Inc to a 6.2% drop in second quarter profit, the retailer has lifted the lower end of its full-year earnings guidance after its results met expectations.

The Houston-based retailer, which operates 752 Bealls, Goody's, Palais Royal, Peebles and Stage stores, said net income fell to $9.1m or $0.24 per share, from $9.7m or $0.25 per share, last time.

Net sales for the three months to 1 August dropped 8.3% to $341.74m from $372.71m.

The firm managed to reduce SG&A expenses by $4.7m even though it operated 24 extra stores.

Andy Hall, president and chief executive officer said macroeconomic conditions are likely to "remain challenging during the second half of the year."

But easier comparisons with the prior year should help same-store sales, he said.

For the fiscal year, it expects a comparable store sales decrease of 7.0% to 8.5%, and has raised the low end of its earnings per share guidance to give a range of $0.47 to $0.65.

Click here to read the full results release.

Sectors: Apparel, Finance, Retail

Companies: Stage Stores