HOUSTON--(BUSINESS WIRE)--Stage Stores, Inc. (NYSE: SSI) announced that, following strong results for both the 9 off-price conversions completed in 2018 and the 37 off-price conversions completed in the first quarter of 2019, the company is accelerating and expanding the rollout of its off-price growth strategy. The 35 second quarter conversions, which were previously planned for back-to-school, will now be completed in June, and an additional 10 to 15 stores will be converting in the third quarter. With approximately 85 total conversions in 2019, the company now expects to end the year with approximately 150 off-price stores along with an additional 150 off-price conversions planned for the first half of fiscal 2020.
“We are extremely pleased with the initial sales results in our March off-price conversions. They have clearly exceeded our expectations and have continued the momentum that began with our 2018 converted stores,” said Michael Glazer, President and Chief Executive Officer. “Notably, through mid-March, sales in our 2018 small market conversions have increased more than 150% since they were converted compared to their department store results. Based on the strong results we have seen across our converted store base, we are thrilled to further accelerate and expand our off-price growth strategy. We now expect to enter the second half of 2020 with more than 300 Gordmans off-price stores, which will represent approximately half our total sales volume. With higher sales, improving store profitability, and faster inventory turns, our off-price strategy bodes well for our earnings and cash flow performance.”
Inclusive of the acceleration and expansion of the off-price conversion strategy, the company is reaffirming its previously announced guidance for sales, earnings, and capital.
About Stage Stores
Stage Stores, Inc. is a leading retailer of trend-right, name-brand values for apparel, accessories, cosmetics, footwear and home goods. As of March 28, 2019, the company operates in 42 states through 688 BEALLS, GOODY'S, PALAIS ROYAL, PEEBLES, and STAGE specialty department stores and 105 GORDMANS off-price stores, as well as an e-commerce website at www.stage.com. For more information about Stage Stores, visit the company’s website at corporate.stage.com.
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