Revenue during the quarter dropped 9.79 percent to $317.14 million from $351.58 million in the previous year period. Gross margin for the quarter contracted 380 basis points over the previous year period to 17.84 percent. Operating margin for the quarter stood at negative 8.82 percent as compared to a negative 4.55 percent for the previous year period.

Operating loss for the quarter was $27.97 million, compared with an operating loss of $16 million in the previous year period.

"Our third quarter results remained challenged by a difficult retail environment, unseasonably warm weather, the weak peso, and ongoing pressure in Texas, Oklahoma, Louisiana, and New Mexico from depressed oil prices," said Michael Glazer, president and chief executive officer. "As a result, we increased clearance sales to position inventory levels for the important fourth quarter. We have enhanced our assortments, heightened our promotions, and created a more engaging customer experience online and in stores to drive sales during the holiday season. We are pleased to announce our quarterly dividend and we remain committed to generating positive free cash flow and delivering value to our shareholders."

For financial year 2016, Stage Stores, Inc forecasts diluted loss per share to be in the range of $0.45 to $0.20. The company forecasts diluted loss per share to be in the range of $0.40 to $0.15 on adjusted basis.

For the fourth-quarter 2016,  Stage Stores, Inc forecasts diluted earnings per share to be in the range of $0.65 to $0.90 for the fourth-quarter.

Operating cash flow turns positive
Stage Stores, Inc has generated cash of $5.25 million from operating activities during the nine month period as against cash outgo of $30.83 million in the last year period.

The company has spent $66.76 million cash to meet investing activities during the nine month period as against cash outgo of $69.12 million in the last year period. It has incurred net capital expenditure of $66.76 million on net basis during the nine month period, down 3.42 percent or $2.36 million from year ago period.

Cash flow from financing activities was $63.92 million for the nine month period, down 39.83 percent or $42.30 million, when compared with the last year period.

Cash and cash equivalents stood at $18.90 million as on Oct. 29, 2016, down 19.34 percent or $4.53 million from $23.43 million on Oct. 31, 2015.

Working capital remains almost stable
Stage Stores, Inc has witnessed a decline in the working capital over the last year. It stood at $373.41 million as at Oct. 29, 2016, down 0.58 percent or $2.19 million from $375.60 million on Oct. 31, 2015. Current ratio was at 2.36 as on Oct. 29, 2016, up from 2.20 on Oct. 31, 2015.

Days inventory outstanding has decreased to 99 days for the quarter compared with 183 days for the previous year period. At the same time, days payable outstanding went down to 66 days for the quarter from 68 for the same period last year.