Stage Stores 1Q profit falls on economic conditions

For the period ended May 3, net income fell to $2.3 million, or 6 cents per share, from $9.1 million, or 20 cents per share, a year earlier.

The prior-year period also benefited from a $1.7 million gain on the March 2004 sale of the Peebles private label credit card portfolio. Excluding the sale, year-ago earnings totaled $7.4 million, or 16 cents per share.

Quarterly sales edged down 1 percent to $353.5 million from $358.2 million.

Profit results met the expectations of analysts polled by Thomson Financial, though revenue came in slightly shy of Wall Street's $355.7 million average estimate.

Same-store sales declined 5.4 percent during the quarter.

Same-store sales, or sales at stores open at least a year, is a key indicator of retailer performance since it measures growth at existing stores rather than newly opened ones.

"Ongoing price increases for gasoline and groceries, continuing turmoil in the housing market and job uncertainty clearly dampened the mood of the consumer, leading to the shortfall in our first-quarter sales and earnings versus last year," Chairman and Chief Executive Jim Scarborough said in a statement.

Store opening costs climbed to $2.3 million from $755,000, while selling, general and administrative expenses grew to $88.3 million from $82.3 million.