Form 8-K STAGE STORES INC For: Jan 08
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
________________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
January 8, 2018
(Date of Report, Date of Earliest Event Reported)
Stage Stores, Inc.
(Exact Name of Registrant as Specified in Charter)
1-14035
(Commission File Number)
NEVADA (State or Other Jurisdiction of Incorporation) | 91-1826900 (I.R.S. Employer Identification No.) |
2425 West Loop South, Houston, Texas (Address of Principal Executive Offices) | 77027 (Zip Code) |
(800) 579-2302
(Registrant’s Telephone Number, Including Area Code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). | |
Emerging growth company | o |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | o |
Item 8.01 Other Events.
On January 8, 2018, Stage Stores, Inc. (“we,” “us,” “our” or “registrant”) issued a news release reporting our unaudited holiday comparable sales results for the nine-week period ending December 30, 2017 and updating our guidance for fiscal 2017. A copy of the news release is attached to this Form 8-K as Exhibit 99.
The news release included guidance for fiscal 2017 adjusted loss per diluted share, a “non-GAAP financial measure,” as that term is defined by Rule 101 of Regulation G (17 CFR Part 244) and Item 10 of Regulation S-K (17 CFR Part 229). The non-GAAP financial measure excludes from the most directly comparable financial measure calculated and presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”) after-tax charges related to the Gordmans acquisition, store closures, impairments and a pension settlement of approximately $0.23 per diluted share for fiscal 2017. The news release posted in the Investor Relations section of our website contains a presentation of the most directly comparable financial measure calculated and presented in accordance with GAAP and a reconciliation of the difference between the non-GAAP financial measures and the most directly comparable financial measures calculated and presented in accordance with GAAP. We believe this supplemental financial information enhances an investor’s understanding of our financial performance as it excludes those items which impact comparability of operating trends. The non-GAAP financial information should not be considered in isolation or viewed as a substitute for net income, cash flow from operations or other measures of performance as defined by GAAP. Moreover, non-GAAP financial information as reported by us is not necessarily comparable to other similarly titled measures of other companies due to the potential inconsistencies in the method of presentation and items considered.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
99 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
STAGE STORES, INC. | |
Date: January 11, 2018 | /s/ Oded Shein |
Oded Shein | |
Executive Vice President, | |
Chief Financial Officer and Treasurer | |
EXHIBIT 99
NEWS RELEASE
CONTACT:
Alysha Tawney
Manager, Strategy and Investor Relations
713-331-4902
Stage Stores Reports 1.1% Comparable Sales Increase for Holiday Period
HOUSTON, TX, January 8, 2018 - Stage Stores, Inc. (NYSE: SSI) today reported a comparable sales increase of 1.1% for the nine-week period ended December 30, 2017. The Company also narrowed its guidance for 2017 to an adjusted loss per diluted share of $0.90 to $1.15 and comparable sales of -4.0% to -4.5%, from the previously communicated guidance of an adjusted loss per diluted share of $0.90 to $1.25 and comparable sales of -4.0% to -6.0%. Guidance is exclusive of the impact of federal tax reform and the valuation of net deferred tax assets.
Michael Glazer, President and Chief Executive Officer, commented, “We were very pleased to see the strong momentum from the third quarter accelerate into the holiday season as we delivered positive comparable sales in both November and December. Our e-commerce sales increased at a double-digit rate once again as we remain focused on driving growth in this channel. Our non-apparel businesses, primarily cosmetics, shoes, home, gifts, and handbags, had the strongest performances during the holiday season. In addition, active apparel continued to be a winning category. We remain excited about the potential of our off-price Gordmans business as we continued to see sequential improvement in sales and our guest experience. As a result of three consecutive months of positive comparable sales and merchandising discipline throughout the year, we expect to end 2017 with our inventory level and content in great shape. With our improved performance during the course of the year, and particularly the strength of our holiday season, our initiatives to jump start the department stores business in 2017 have proven successful.”
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 January 8, 2018, the Company operates in 42 states through 788 BEALLS, GOODY'S, PALAIS ROYAL, PEEBLES, and STAGE specialty department stores and 58 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.
Use of Adjusted (Non-GAAP) Financial Measures
The Company reports its financial results in accordance with generally accepted accounting principles (GAAP). However, management believes that certain non-GAAP financial measures help to facilitate comparisons of Company operating performance across periods. This release includes non-GAAP financial measures identified as “adjusted” results. A reconciliation of all non-GAAP financial measures to the most comparable GAAP financial measures is provided in a table included with this release.
Caution Concerning Forward-Looking Statements
Certain statements in this release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and such statements are intended to qualify for the protection of the safe harbor provided by the Act. The words “anticipate,” “estimate,” “expect,” “objective,” “goal,” “project,” “intend,” “plan,” “believe,” “will,” “should,” “may,” “target,” “forecast,” “guidance,” “outlook” and similar expressions generally identify forward-looking statements. Similarly, descriptions of the Company’s objectives, strategies, plans, goals or targets are also forward-looking statements. Forward-looking statements relate to the expectations of management as to future occurrences and trends, including statements expressing optimism or pessimism about future operating results or events and projected sales, earnings, capital expenditures and business strategy. Forward-looking statements are based upon a number of assumptions concerning future conditions that may ultimately prove to be inaccurate. Forward-looking statements are based upon management’s then-current views and assumptions regarding future events and operating performance. Although management believes the expectations expressed in forward-looking statements are based on reasonable assumptions within the bounds of its knowledge, forward-looking statements involve risks, uncertainties and other factors which may materially affect the Company’s business, financial condition, results of operations or liquidity.
Forward-looking statements are not guarantees of future performance and actual results may differ materially from those discussed in the forward-looking statements as a result of various factors, including, but not limited to, economic conditions, cost and availability of goods, inability to successfully execute strategic
initiatives, competitive pressures, economic pressures on the Company and its customers, freight costs, the risks discussed in the Risk Factors section of the Company’s most recent Annual Report on Form 10-K as filed with the Securities and Exchange Commission (“SEC”), and other factors discussed from time to time in the Company’s other SEC filings. This release should be read in conjunction with such filings, and you should consider all of such risks, uncertainties and other factors carefully in evaluating forward-looking statements.
You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date thereof. The Company undertakes no obligation to publicly update forward-looking statements, whether as a result of new information, future events or otherwise. You are advised, however, to consult any further disclosures the Company makes on related subjects in its public announcements and SEC filings.
(Tables to Follow)
Stage Stores, Inc.
Reconciliation of Non-GAAP Financial Measures
(in thousands, except earnings per share)
(Unaudited)
2017 Guidance Range(a) | |||||||
Low | High | ||||||
Diluted loss per share (GAAP) | $ | (1.38 | ) | $ | (1.13 | ) | |
Business acquisition costs (pretax) | 0.33 | 0.33 | |||||
Store closures, impairments and other (pretax) | 0.05 | 0.05 | |||||
Income tax impact | (0.15 | ) | (0.15 | ) | |||
Adjusted diluted loss per share (non-GAAP) | $ | (1.15 | ) | $ | (0.90 | ) | |
(a) The updated guidance does not reflect the impact of federal tax reform and the valuation of net deferred tax assets as the impact cannot be determined without unreasonable effort.