Stage Stores, Inc. (NYSE:SSI)

CAPS Rating: No stars

A specialty department store retailer offering moderately priced nationally recognized brand name and private label apparel, accessories, cosmetics and footwear for the entire family.


Player Avatar NetscribeRetail (91.76) Submitted: 3/26/2007 5:31:00 AM : Outperform Start Price: $20.40 SSI Score: -55.08

Perfect stage to invest in Stage Stores!!
Founded in 1988, Texas based Stage Stores operates as a specialty department store retailer that offers branded and private label apparel, accessories, cosmetics and footwear. The Company operates under the Stage, Bealls and Palais Royal names throughout the South Central states, and under the Peebles name throughout the Mid-Atlantic, Southeastern, Midwestern and New England states.
Baby boomers are amongst the wealthiest generations in the U.S today, and especially females are heavy spenders on account of higher disposable income. This denotes a good picture for Stage stores as it is targeting the female customers between the ages of 25 and 59, thereby tapping the affluent market. Company’s strategy of focusing on small and mid size markets of the United States should work well due to lower presence of other players. Broad range of merchandise offerings ranging from dresses to footwear gives it a competitive edge over small regional chains and local retailers.
Fiscal 2006 performance of the company has been impressive with over 15% rise in sales powered by strong business from sportswear and cosmetic products. Looking ahead, company plans to expand its assortment in the plus size women’s area which is the fastest growing category in the women’s apparel market. Acquisition of 69 B.C Moore Stores in February 2006 could be productive in the future as it has enabled Stage Stores to significantly expand its presence in regions like Alabama, Carolina and Georgia. Company opened 108 new stores in fiscal 2006 and expects to benefit from these openings in fiscal ‘07. Additionally, they plan to open over 40 stores in the current fiscal, which could further fuel the growth prospects. Summarizing the above factors, this looks a right time to buy the stock

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