Stage Stores lowers 2008 profit, sales outlooks

The clothing and accessories retailer now expects 2008 profit in a range of $1.04 to $1.24 per share on revenue between $1.57 billion and $1.59 billion, down from prior estimates of $1.24 to $1.38 per share on sales of $1.61 billion to $1.64 billion.

Analysts surveyed by Thomson Financial forecast full-year net income of $1.14 per share on revenue of $1.59 billion. Estimates typically exclude one-time items.

The company also said it expects second-quarter earnings in a range of 17 cents to 23 cents per share on sales between $360 million and $368 million. The forecast includes the assumption that second-quarter same-store sales will decline between 3 percent and 5 percent.

Analysts expect second-quarter profit of 15 cents per share on sales of $367.6 million.

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.

The retail sector, along with many other industries, has been squeezed as consumers curb discretionary spending due to the continued housing downturn, diminishing credit, rising food and fuel costs and recession fears.

Stage Stores has 717 stores in 35 states.