To be perfectly honest, I had largely given up on ailing department store operator Stage Stores (SSI) in May after the comparable sales growth trajectory of its new Gordmans off-price store segment appeared to have weakened from previous quarters.
Source: Company Presentation
But in August, the company reported improved second quarter results with comparable sales turning positive. While an overall disappointing spring season performance caused management to lower sales growth expectations, the company nevertheless raised adjusted EBITDA guidance materially (from $10-15 million to $20-25 million) due to an accelerated off-price conversion schedule with