Stage Stores March same-store sales fall; cuts Q1 view
(Reuters) - Department store operator Stage Stores Inc (SSI.N) reported a 10.3 percent fall in March same-store sales and halved its first-quarter profit outlook range, citing weakening economic conditions and a shift in the Easter calendar.
Easter fell on March 23 this year compared with April 8 last year making it the earliest Easter since 1913, according to the National Retail Federation.
Though Easter usually boosts retail sales, an early Easter and a much colder March also means people are not as likely to buy spring wear, which is traditionally tied to holiday shopping in April. The company now expects first-quarter earnings of 5 cents to 8 cents a share, compared to its prior view of 13 cents to 16 cents a share. Analysts were expecting earnings of 13 cents a share, before items, according to Reuters Estimates. Same-store sales for the first quarter were projected to be down in the mid single digits, compared to the previous expectation of flat to negative low single digit.
The company, which operates through its Stage, Bealls, Palais Royal and Peebles stores, reported total sales of $141.1 million for the five-week period ended April 5.
"While we still believe that our April sales should benefit from the Easter calendar shift, we do not expect that economic conditions will improve noticeably during the month," Chief Executive Jim Scarborough said in a statement.
The company's stock closed at $15.44 Thursday on the New York Stock Exchange.
(Reporting by Esha Dey in Bangalore; Editing by Amitha Rajan)
