HOUSTON, TX, March 7, 2019 - Stage Stores, Inc. (NYSE: SSI) today reported results for the fourth quarter and fiscal year ended February 2, 2019 and initiated guidance for fiscal year 2019. For the fourth quarter, total company comparable sales decreased 2.4%. Shifted comparable sales, comparing the thirteen weeks ended February 2, 2019 and February 3, 2018, increased 0.6%. Net loss, including $14.9 million of non-cash tradename impairment, was $7.8 million and fourth quarter EBITDA adjusted for impairments was $27.1 million.
“The fourth quarter represented our best quarter of shifted comparable sales results in fiscal 2018, and we are excited for the momentum to carry forward” commented Michael Glazer, Chief Executive Officer. “We drove sequential improvement in shifted comparable sales, including double digit e-commerce sales growth, each quarter this year. The fourth quarter positive sales results were primarily attributed to a strong performance by our non-apparel categories, particularly home and gifts. The six department stores converted to Gordmans in smaller mid-west markets delivered a shifted comparable sales increase of more than 150% in the fourth quarter. This further increases our confidence in the next phase of our strategy, as the 2019 conversions are predominantly in these smaller mid-west markets. At year-end, total inventories were down 3%, in line with our expectations, and excess availability under our credit facility was $82 million.”
Michael Glazer continued, “Looking to 2019, our pivot to off-price will accelerate, with 70 to 80 department stores converting to Gordmans. Given the strong conversion results in 2018, we expect these efforts to benefit our comparable sales performance in 2019 by at least 200 basis points. Additionally, we believe that capital and inventory investments will enable us to nearly double home department penetration in our department stores, delivering a total company comparable sales benefit of approximately 300 basis points. These 2019 initiatives, combined with strong trends in e-commerce, non-apparel, and active apparel support our comparable sales guidance of +3% to +5% for 2019. In addition to comparable sales growth, our efforts to close 40 to 60 underperforming stores, drive gross margin improvement, and enhance the profitability of our existing off-price stores are expected to deliver an EBITDA of $10 million to $15 million in 2019. Capital spend will be between $30 and $35 million, in line with 2018, and meaningful inventory reductions associated with closing and converting stores will result in positive cash flow for the year. We are very excited about the future, including converting 150 more department stores to off-price by the middle of 2020. As a result, by the end of 2020, off-price sales will represent approximately 50% of our sales volume.”
The following information was filed by Stage Stores Inc (SSI) on Tuesday, March 12, 2019 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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Ticker: SSI CIK: 6885 Form Type:10-K Annual Report Accession Number: 0000006885-19-000109 Submitted to the SEC: Fri Apr 05 2019 9:50:31 AM EST Accepted by the SEC: Fri Apr 05 2019 Period: Saturday, February 2, 2019 Industry: Retail Family Clothing Stores