NEW YORK (TheStreet) -- Shares of Stage Stores Inc.
(SSI) are down -6.65% to $17.27 on very heavy trading volume after the company's second quarter results fell below analysts' expectations.
The company's second quarter earnings per share was 45c on revenue of $337M, missing analysts' consensus estimates of of 52c and $397.57M, respectively.
Same-store sales were down 4.2% for the quarter.
Must Read: Warren Buffett's 25 Favorite Stocks
The retailer noted that the quarter was "challenging," but said its sales trend improved towards the end of the quarter.
Stage Stores expects fiscal year 2014 EPS to be in the range of $1.05-$1.15, but below analysts' $1.22 consensus estimates. The retailer anticipates fiscal year 2014 revenue to be in the range of $1.61B-$1.63B, also lower than analysts' consensus estimates of $1.65B.
In addition, the company sees SSS for the second half of the year flat to up 2%.
During the company's conference call today, Stage Stores blamed reduced traffic and a decrease in clearance sales as contributors to lower than expected second quarter results, according to theflyonthewall.com.
The retailer said that it's "intensely focused" on delivering improved performance results, and says the upcoming promotional environment will remain competitive while traffic will remain constrained. Sales in 2H14 are set to be better than in the first half of 2014, and the company said that it's off to a "positive start" for the upcoming fall quarter, the fly noted.
TheStreet Ratings team rates STAGE STORES INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate STAGE STORES INC (SSI) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity."
EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he and Stephanie Link think could be potentially HUGE winners. Click here to see the holdings for FREE.
Check Out Our Best Services for Investors
Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts