Stage Stores (SSI) shares tanked more than 24% after-hours on Friday as the company said holiday comparable sales fell 7.3% in the nine weeks ending Dec. 31.
“Holiday comparable sales were below our expectations and increased promotions significantly pressured gross margin,” said Michael Glazer, president and chief executive officer. “Traffic remained weak with ongoing pressure in oil impacted and border states. However, we saw sequential sales improvement in the balance of the chain as well as a low double digit increase in online sales compared to holiday 2015.”
The company cut its Q4 earnings guidance to $0.20 to $0.35 a share from $0.65 to $0.90 given in its Q3 statement. Analysts are expecting earnings of $0.74 per share for Q4, according to Capital IQ.
For FY it sees an adjusted loss per diluted share of $0.70 to $0.85 from an adjusted loss of between $0.15 and $0.40 earlier seen. The Street view is a loss of $0.33 per share.