Stage Stores, Inc. (SSI) saw its loss widen to $18.99 million, or $0.70 a share for the quarter ended Apr. 29, 2017. In the previous year period, the company reported a loss of $15.46 million, or $0.57 a share. On the other hand, adjusted net loss for the quarter narrowed to $15 million, or $0.55 a share from a loss of $15.11 million or $0.56 a share, a year ago. Revenue during the quarter dropped 7.26 percent to $308.61 million from $332.75 million in the previous year period. Gross margin for the quarter expanded 3 basis points over the previous year period to 20.16 percent. Operating margin for the quarter stood at negative 8.40 percent as compared to a negative 6.96 percent for the previous year period.
"We are pleased to have improved adjusted earnings to last year. Our team has worked hard to increase merchandise margins by nearly 170 basis points, control inventories which were down 6% excluding Gordmans, and grow our direct-to-consumer business in the first quarter. After a challenging February in which we saw negative double digit comps, we began to gain momentum and our business improved significantly during the combined March and April period," said Michael Glazer, president and chief executive officer. "While we expect retail headwinds to continue in the near term, we believe that our selective acquisition of prime Gordmans’ assets allows us to diversify with an off-price business model. We expect the acquisition to add scale to our business and be meaningfully accretive to our earnings in 2018."
Stage Stores projects revenue to be in the range of $1,565 million to $1,620 million. The company forecasts diluted loss per share to be in the range of $1.73 to $1.13. It ompany forecasts diluted loss per share to be in the range of $1.55 to $0.95 on adjusted basis.
Operating cash flow turns negative
Stage Stores, Inc. has spent $0.31 million cash to meet operating activities during the quarter as against cash inflow of $8.06 million in the last year period. The company has spent $39.98 million cash to meet investing activities during the quarter as against cash outgo of $32.18 million in the last year period. It has incurred net capital expenditure of $6.14 million on net basis during the quarter, down 80.93 percent or $26.04 million from year ago period.
Cash flow from financing activities was $48.18 million for the quarter, up 58.72 percent or $17.82 million, when compared with the last year period.
Cash and cash equivalents stood at $21.69 million as on Apr. 29, 2017, down 4.56 percent or $1.04 million from $22.72 million on Apr. 30, 2016.
Working capital decreases marginally
Stage Stores, Inc. has witnessed a decline in the working capital over the last year. It stood at $335.74 million as at Apr. 29, 2017, down 1.68 percent or $5.73 million from $341.48 million on Apr. 30, 2016. Current ratio was at 2.61 as on Apr. 29, 2017, down from 2.66 on Apr. 30, 2016.
Days inventory outstanding has decreased to 88 days for the quarter compared with 157 days for the previous year period. At the same time, days payable outstanding went up to 41 days for the quarter from 37 for the same period last year.
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