Stage Stores Inc [NYSE: SSI] was one of the big winners in Friday’s session. The stock rallied and closed the day with gains of 37.46%. This followed impressive Q3 earnings that beat analysts’ expectations. Stage Stores announced that sales in the quarter shot up by 17. Other metrics that were equally impressive include the adjusted net loss than declined by close to 50% compared to a similar period in 2018. The numbers for 2019 stood at $15.9 million as compared to a loss of $31.4 million in 2018. The adjusted EBITDA also improved significantly to $15.3 million compared to $28.5 million yesterday.
Besides these positive figures, the company also announced a number of other positive developments. One of them was the conversion of 17-department stores to Gordmans off-price. This has brought the company’s conversions to a total of 89. The company also announced that it had expanded the Amazon Counter to 700, a development that increased customer convenience and pushed up store traffic. On top of that, the company announced that an increase in credit availability to $101 million by the end of Q3. This represented an increase of $35 million compared to Q2 of 2019.
The company CEO, Michael Glazer stated that, the good performance in Q3 was a confidence boost for the company’s decision to convert to an off-price business model. He further stated that, the 17.4% increase in revenues that they recorded in Q3 was driven by a positive reception of the company’s Gordmans stores. He stated that, the department stores that they converted pushed up sales by close to 40%.
The CEO also pointed out that, the Amazon partnership had pushed up customer sales. Looking into the future, Michael Glazer stated that they intend to continue with the conversions and complete the process in Q3 of 2020.
About Stage Stores, Inc
Stage Stores, Inc runs a specialty department store in small towns across the U.S. The company has its headquarters in Houston, Texas.