Stage Stores, Inc. (SSI: Quote) on Tuesday reported a 9 percent increase in profit for the fourth quarter on higher sales and margins. However, both earnings per share and revenue missed analysts’ expectations.
Looking ahead, the retailer forecast fiscal 2013 earnings per share in line with analysts’ estimates, but projects revenues below their expectations.
Houston, Texas-based Stage Stores, whose stores operate under the Bealls, Goody’s, Palais Royal, Peebles, Stage and Steele’s names, said its fourth-quarter net income rose to $35.79 million or $1.09 per share from $32.71 million or $1.05 per share in the prior-year period.
On average, 7 analysts polled by Thomson Reuters expected earnings per share of $1.16 for the quarter. Analysts’ estimates typically exclude one-time items.
Net sales for the quarter grew 10 percent to $527.90 million from $479.10 million in the year-ago quarter. Analysts had a consensus revenue estimate of $528.91 million.
Comparable store sales for the quarter grew 6.6 percent. Gross margin was 32.4 percent, up from 31.4 percent in the same period last year.
For fiscal 2012, Stage Stores’ net income rose to $38.18 million or $1.19 per share from $30.96 million or $0.92 per share in the previous year. Adjusted net income was $42.6 million or $1.33 per share, compared to adjusted earnings of $31.0 million or $0.92 per share in the prior year.
Total sales for the year grew 9 percent to $1.65 billion from $1.51 billion last year.
Analysts expected the company to earn $1.30 per share for the year on revenues of $1.65 billion.
Comparable store sales for the year increased 5.7 percent, the highest percentage increase in over 10 years.
Looking ahead to fiscal 2013, Stage Stores forecasts adjusted earnings per share, excluding one-time items, in a range of $1.45 to $1.55. The one-time items for the year are related to the consolidation of the company’s South Hill operations into its Houston headquarters and are estimated to be some $16 million or $0.30 per share.
The company forecasts sales for the year in a range of $1.69 billion to $1.72 billion and comparable-store sales to increase 2 to 4 percent.
Street expects the company to report earnings per share of $1.51 for the year on revenue of $1.73 billion.
In addition, Stage Stores plans to open about 40 stores during the year and expects net capital expenditures of about $57 million, up 27 percent from the preceding year.
Michael Glazer, President and Chief Executive Officer of Stage Stores said, “We have strategically increased our inventory investment to take advantage of several opportunities. We clearly expect to see meaningful sales and earnings growth in 2013 and beyond.”
SSI closed Monday’s trading at $26.83, up $0.08 on a volume of 694,500 shares.
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by RTT Staff Writer
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