Why Stage Stores (SSI) Stock Continues To Slump Today

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.

 

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.

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