Stage Stores Reports 2.3% Increase in Third Quarter Comparable Sales and 27% Increase in EPS

Stage Stores, Inc. (NYSE:SSI) today reported financial results for the third quarter ended November 1, 2014.

Sales from continuing operations for the third quarter increased 2.6% to $364 million compared to $355 million in the prior year period. Comparable sales increased 2.3%.

The Company reported a loss from continuing operations of $5.1 million, or $0.16 per share, compared to an adjusted loss from continuing operations of $7.0 million, or $0.22 per share, for the prior year period.

Michael Glazer, President and Chief Executive Officer, stated, “We are pleased with our third quarter results, driven by strong sales during the back-to-school period and encouraging initial selling of Fall assortments. We achieved positive comparable sales by balancing regular price and clearance sales and effectively managing our promotional and advertising plans.

“We made progress on our strategic initiatives which drove top-line and bottom-line gains and were especially pleased with an over 40% sales gain in our direct-to-consumer business, along with strong performances in the cosmetics, women’s apparel and home categories.”

Mr. Glazer concluded, “Looking ahead, we believe our merchandise assortments, marketing plans and operations are ready for a holiday season that we expect to be challenging for apparel retailers. Our stores will be open on Thanksgiving from 4:00 p.m. to 1:00 a.m. and then from 6:00 a.m. to 10:00 p.m. on Black Friday. We are projecting comparable sales for the fourth quarter to be in a range of flat to 2% and are maintaining our full year guidance range from continuing operations of $1.05 to $1.15 per diluted share.”

Amended Credit Facility

On October 6, 2014, the Company entered into an amended senior secured revolving credit facility. The amended credit facility increased availability to $300 million, with a seasonal increase to $350 million, provided better pricing terms and extended the maturity date to October 6, 2019.

Reported Results

The Company reported a net loss of $5.3 million, or $0.17 per share, for the third quarter. The current year’s net loss includes expenses ($0.2 million after tax; $0.01 per share) from the former Steele’s division, which was sold on March, 7, 2014. For the prior year’s third quarter, the Company reported a net loss of $11.0 million, or $0.34 per share. The prior year’s net loss includes a loss ($1.4 million after tax; $0.04 per share) from the former Steele’s division, as well as expenses ($2.6 million after tax; $0.08 per share) associated with the consolidation of the Company’s South Hill, Virginia operations into its Houston headquarters.

For the first three quarters of fiscal 2014, comparable sales decreased 0.8%. The net loss, including discontinued operations, was $12.9 million, or $0.41 per share, compared to a net loss of $8.2 million, or $0.25 per share, in the comparable prior year period.

Fiscal Year 2014 Guidance

Comparable sales for the fourth quarter are expected to be in the range of flat to positive 2.0%. The Company is maintaining its EPS guidance from continuing operations of $1.05 - $1.15.

Conference Call / Webcast Information

The Company will hold a conference call today at 8:30 a.m. Eastern Time to discuss its third quarter results. Interested parties can participate in the Company’s conference call by dialing 703-639-1361. Alternatively, interested parties can listen to a live webcast of the conference call by logging on to the Company's web site at www.stagestoresinc.com and then clicking on Investor Relations, then Webcasts and then the webcast link. A replay of the conference call will be available online until midnight on Friday, November 28, 2014.

About Stage Stores

Stage Stores, Inc. operates primarily in small and mid-sized towns and communities. Its stores, which operate under the Bealls, Goody’s, Palais Royal, Peebles and Stage names, offer moderately priced, nationally recognized brand name apparel, accessories, cosmetics and footwear for the entire family. The Company currently operates 858 stores in 40 states. The Company also has an eCommerce website. For more information about Stage Stores, visit the Company’s web site at www.stagestoresinc.com.

Use of Adjusted (Non-GAAP) Financial Measures

The Company reports its financial results in accordance with generally accepted accounting principles (GAAP). However, management believes that certain non-GAAP financial measures help to facilitate comparisons of Company operating performance across periods. This release includes non-GAAP financial measures identified as “adjusted” results. A reconciliation of all non-GAAP financial measures to the most comparable GAAP financial measures is provided in a table included with this release.

Caution Concerning Forward-Looking Statements

Certain statements in this release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and such statements are intended to qualify for the protection of the safe harbor provided by the Act. The words “anticipate,” “estimate,” “expect,” “objective,” “goal,” “project,” “intend,” “plan,” “believe,” “will,” “should,” “may,” “target,” “forecast,” “guidance,” “outlook” and similar expressions generally identify forward-looking statements. Similarly, descriptions of the Company’s objectives, strategies, plans, goals or targets are also forward-looking statements. Forward-looking statements relate to the expectations of management as to future occurrences and trends, including statements expressing optimism or pessimism about future operating results or events and projected sales, earnings, capital expenditures and business strategy. Forward-looking statements are based upon a number of assumptions concerning future conditions that may ultimately prove to be inaccurate. Forward-looking statements are and will be based upon management’s then-current views and assumptions regarding future events and operating performance, and are applicable only as of the dates of such statements. Although the Company believes the expectations expressed in forward-looking statements are based on reasonable assumptions within the bounds of its knowledge, forward-looking statements, by their nature, involve risks, uncertainties and other factors, any one or a combination of which could materially affect our business, financial condition, results of operations or liquidity.

Forward-looking statements made by the Company in this release and in other releases and reports are not guarantees of future performance and actual results may differ materially from those discussed in such forward-looking statements as a result of various factors, including, but not limited to, current economic conditions, the cost of goods, its inability to successfully execute strategic initiatives, competitive pressures, economic pressures on the Company and its customers, the availability of merchandise, freight costs, the risks discussed in the Risk Factors section of the Company’s most recent Annual Report on Form 10-K as filed with the Securities and Exchange Commission (the “SEC”) on April 2, 2014, and other factors discussed from time to time in the Company’s other filings with the SEC, including Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. This release should be read in conjunction with such filings, and you should consider all of these risks, uncertainties and other factors carefully in evaluating forward-looking statements.

You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date thereof. The Company undertakes no obligation to publicly update forward-looking statements, whether as a result of new information, future events or otherwise. You are advised, however, to consult any further disclosures the Company makes on related subjects in its public announcements and SEC filings.