UPDATE: Stage Stores Posts Downbeat Q2 Profit, Lowers Full-Year Outlook

Shares of Stage Stores

dropped more than 8% in pre-market trading after the company reported downbeat fiscal second-quarter profit and cut its full-year forecast. The Houston, Texas-based company posted a quarterly profit of $11.2 million, or $0.35 per share, versus a year-ago profit of $9.6 million, or $0.29 per share. Excluding non-recurring items, Stage Stores earned $0.45 per share. Its sales fell to $377.4 million from $390 million. However, analysts were expecting earnings of $0.53 per share on revenue of $397.57 million. Its same-store sales slipped 4.2% in the quarter. Stage Stores now expects full-year profit of $1.05 to $1.15 per share, versus its earlier forecast of $1.25 to $1.35 per share. It also expects full-year sales of $1.61 billion to $1.63 billion. Analysts expected full-year earnings of $1.22 per share on revenue of $1.65 billion. Michael Glazer, President and Chief Executive Officer, said, “We found the second quarter to be challenging, but we were encouraged that our sales trend improved towards the end of the quarter.” Stage Stores shares dropped 8.16% to $17.22 in pre-market trading.