HOUSTON (AP) — Stage Stores Inc.'s fiscal second-quarter net income tumbled 18 percent, and the department store operator lowered its expectations for the year, as promotions and a sales shortfall in one part of its business held back earnings.
The Houston company said Thursday it earned $9.6 million, or 29 cents per share, in the quarter that ended Aug. 3. That compares to earnings of $11.7 million, or 37 cents per share, in last year's quarter.
Earnings excluding costs tied to the consolidation of its South Hill, Va., operations totaled 41 cents per share. Revenue climbed more than 3 percent to $395.3 million.
That missed Wall Street expectations. Analysts predicted, on average, earnings of 46 cents per share on $402.4 million in revenue, according to FactSet.
Stage runs department stores mostly in small- and mid-sized communities under several names, including Bealls, Goody's and Peebles. It has 872 stores in 40 states. The company also has a buying office in South Hill, Va., and it said in February it would move those operations to its corporate headquarters.
The company said Thursday that back-to-school sales helped its business toward the end of the quarter, but it also saw a shortfall in sales from its South Hill Stores.