Please ensure Javascript is enabled for purposes of website accessibility

Why Stage Stores, Inc. Shares Plummeted Today

By Daniel Sparks – Mar 3, 2016 at 1:10PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Higher-than-planned markdowns pressured the company's earnings. Here's a look at the quarter's results.

Image source: Stage Stores.

What: Shares of department store retailer Stage Stores (SSI) plummeted as much as 23.5% today and are down about 22% at the time of this writing. The stock's decline follows the company's worse-than-expected profit for its fourth quarter and weaker-than-expected guidance.

So what: On Thursday morning, Stage Stores reported fourth-quarter revenue and adjusted EPS of $502.6 million and $0.91, respectively. Revenue was higher than the consensus analyst estimate for the quarter, but EPS was lower. On average, analysts expected revenue and adjusted EPS of $501.5 million and $1.06, respectively.

Management noted earnings were pressured by higher-than-planned markdowns.

For fiscal 2016, Stage Stores management said it expected sales of $1.53 billion to $1.56 billion. On average, analysts forecasted sales of $1.57 billion during fiscal 2016. 

What now: Management noted in the company's earnings release that it expected "external headwinds to continue to impact the business," but that it believed its investments in omnichannel and store upgrades will position its business to deliver improved performance.

Daniel Sparks has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.