Stage Stores to convert 220 stores to Gordmans off-price stores by 2020
Stage Stores announced its strategy to convert approximately 220 additional department stores to Gordmans off-price stores by the middle of 2020. With the acceleration of the conversion of department stores to the off-price model, the company will suspend its quarterly dividend and expects to spend approximately $35M in capital in 2019. The company said "The results of department stores converted to off-price continue to exceed our expectations, with smaller stores more than doubling their volume after conversion. Off-price stores, when compared to our department stores, also benefit from a higher penetration of outperforming non-apparel categories. As a result, off-price comp sales once again increased during the holiday period, despite the headwind created by the November 2017 marketing relaunch. In department stores, while apparel sales continue to be challenged, we delivered strong results in non-apparel, with home and gifts increasing more than 20% and representing more than 10% of sales. Additionally, we expect to end the year with more than $100M of excess availability under our credit facility."