Shares of Stage Stores (NYSE:SSI) plunged a brutal 57% on Monday, following the release of its holiday sales figures.
Stage Stores' comparable-store sales rose only 1.4% during the holiday period, which was well below management's forecast. The company, in turn, was forced to lower its guidance for full-year comp growth to 4%-4.5%, down from a prior estimate of 7% to 9%.
"While our positive comparable sales for the holidays did not meet expectations, we remain confident that our off-price strategy will lead to profitable growth in the future," CEO Michael Glazer said in a press release.
Investors, apparently, are less confident that Stage Stores can successfully convert its remaining department stores to a new off-price format.
Due to its weaker-than-expected sales, Stage Stores was forced to offer heavy discounts to clear out excess inventory. As such, management now expects as much as $30 million in additional losses. That would place the company's 2019 full-year net loss at approximately $95 million.