Boston, MA 03/10/2014 (wallstreetpr) – Stage Stores Inc (NYSE:SSI) recently announced its quarterly earnings and full year results, quarterly dividend, coupled with its proposal to sell its Steele’s off price division.
Consistent Dividend: Stage Stores Inc (NYSE:SSI) declared quarterly dividend of $0.125 per share, corresponds to $0.50 annualized dividend and with a yield of 2.24% for shareholders on record on 4th March14.
Sale of its Discount Store Division: Stage Stores Inc (NYSE:SSI) plans to sell one of its chain stores -Steele’s discount store division launched in 2011, to illinois based Hilco Global, by 100% equity purchase, however the additional purchasing terms are yet to be revealed. This deal is likely to be made during the first quarter of the year. SSI currently operates 35 Steele Stores in seven different states. The impairment charges pertaining to this sale agreement had contributed to dip in quarterly earnings.
Deflating Income in Q413 and FY13: Net sales during the quarter were down by 5.3% to $493 million compared to $519 million in previous year quarter. Stage Stores Inc (NYSE:SSI)’s sales were outperformed in South Central and Northwest regions. The company operates in 40 different states with 848 stores presence. The company’s earnings stood at $24.9 million, with $0.78 per share ($1.09 per share during the previous year quarter). The company, for FY13 reported net profit of $1.22 per share compared to $1.44 per share during FY12. The Net sales meagrely dipped to $1610 million versus $1628 million in FY12. The company also shifted its calendar year.
Company’s Guidance: Company’s CEO initiated its plans of opening, expanding or relocating 40-50 stores, introducing high profile brands, and leveraging ecommerce platforms to DTC business. The company foresee 2% sales growth which would range between $1640-$1670 and adjusted earnings to be in the range of $1.35 – $1.45 per share for FY14. Stage Stores Inc (NYSE:SSI) are in the process of reconstruction and consolidation since last year which is expected to cut 180 jobs in Virginia and add 75 jobs in Houston.
