15th Annual ICR

XChange Conference
January 16, 2013

1

Safe Harbor
This presentation contains “forward-looking statements”.
These forward-looking statements are subject to a number of
risks and uncertainties which could cause actual results to
differ materially from those anticipated by these forwardlooking statements. These risks and uncertainties include, but
are not limited to, those described in the Company’s Annual
Report on Form 10-K as filed with the SEC on March 28, 2012
and other factors as may periodically be described in other
Company filings with the SEC.
This presentation was prepared as of January 4, 2013, and
the Company assumes no obligation to update the information
or the forward-looking statements contained herein.

2

Small Town Stores - Overview 
America’s Leading Small Town Retailer   

Nameplates: Bealls,
Goody’s, Palais Royal,
Peebles, Stage

544

Market Area Population
(within a 10 mile radius of each store)

65% of stores and 59%
of sales are in towns
with a market area
population below 50,000

<50,000
50,000-150,000
> 150,000

158

Our small towns are
under-served markets
with limited competition

65%

19%

129
16% 

Competitive advantages: brand-focused merchandise, a

cost-effective business model and a unique real estate
strategy 

Average rent is $4.15/sq ft…among the lowest in the industry
3

Expanding Footprint in Small Town America

4

Merchandise Strategy 
~85% name brand merchandise 
Branded merchandise for the entire family (% of LTM sales)       

Women’s/Junior’s (39%)
Men’s/Young Men’s (17%)
Footwear (13%)
Children’s (12%)
Accessories (8%)
Cosmetics (8%)
Home & Gifts (3%) 

Estee Lauder and Clinique treatment products in more

than 200 stores

5

We Bring Name Brands To Small Markets

6

New Management Team
NAME 
Michael Glazer

POSITION

STARTED

President & CEO

March 2012

(Member of Board since Aug 2001) 

Steve Lawrence

Chief Merchandising Officer

April 2012

Chief Operating Officer

May 2007 

Bill Gentner

SVP Marketing

June 2012 

Oded Shein

Chief Financial Officer

Jan 2011 

Ed Record

.

7

Selected Financial Results

YTD Sales (11 Mos.)
YTD Comp Store Sales (11 Mos.)

Increase
Over 2011
8.3%
5.5%

4QTD Comp Store Sales (2 Mos.)

5.9%

9 Mos. Diluted EPS(1)

$0.19 improvement

(1) Diluted EPS for 9 Months 2012 excludes one-time charges of $0.06 per share recorded in the first quarter associated
with the resignation of the Company’s former Chief Executive Officer.

8

Growth Initiatives

+ Merchandising
+ Enhanced PLCC Loyalty Program
+ Direct-To-Consumer
+ Steele’s
+ Traditional Stores Growth

9

Merchandising Initiatives 
New Brands – layer-up with higher profile vendors

across merchandise categories:    

Calvin Klein
Nine West
Anne Klein
Jessica Simpson 

Cosmetics 
Additional Estee Lauder and Clinique counters 
Roll-out Beauty Bar Express to all doors 
Launch Bath & Body Bar in all doors 
Celebrity launches: Lady Gaga, Justin Bieber,
Selena Gomez, Nicki Minaj, Beyonce

10

Merchandising/Marketing Initiatives 
Expanding Home Category 
Soft Home 
Cookware 
Gifts 
Luggage 
YES – Your Everyday Savings 
Expected to reach 12% of sales in 2012 
Value message resonates with customer 
Enhance Marketing Effectiveness 
Create more excitement; expand popular events
such as early bird, night owl and door busters 
Enhanced PLCC loyalty program launched and
cards reissued in November 2012
11

Direct-To-Consumer (DTC) 
Accelerate the growth of our

DTC business:    

120

5.60%
Sales ($mm)
100

4.60%

Sales Penetration (%)

DTC combines eCommerce
and Send Program
$15 million in sales for 2011
$25 million in sales for 2012
+$100 million in sales by 2016

80

3.50%

$108
5. 00%

$85

4. 00%

60

2.50%
40

1.50%

$62

3. 00%

2. 00%

$42

0.99%
$25

20

1. 00%

$15
0

0. 00%

2011

12

6. 00%

2012E

2013E

2014E

2015E

2016E

Steele’s – Small Town Off-Price Concept 
New Steele’s Concept    

Value pricing – 30% to 60% off
department stores
Median household income < $35,000
Treasure hunt mentality
Brand name fashions for the family,
accessories, shoes and home décor 

Stage is able to leverage its small market expertise    

Identified a unique opportunity: fills off-price void in
small markets
We know small towns: real estate, supply chain,
marketing, store operations
Stand-alone team of experienced off-price merchants
in NYC
Currently operate 34 Steele’s stores across 7 states

13

New Store Growth
60

Off-Price Stores 

56 new stores opened in

50

Traditional Stores

40

3

2012

31
30

30

3 

25 Traditional Stores

20 

31 Off-Price stores

10

27

33

34

25

2009

2010

2011

2012

0

1200

Off-Price Stores 

Goal of 1,100+ stores

1000

by the end of 2015

800 

950 Traditional stores

600 

150 - 200 Off-Price stores

400

150

Traditional Stores
3

200

34

354

810

830

950

2002

2011

2012E

2015E

0

14

Financial Strength and Shareholder Value 
Financial Strength   

Stage has the financial strength to fund its growth and return capital to
its shareholders
Solid balance sheet with strong net cash position forecasted at year
end
$250 million credit facility with no borrowings at year end 

Track Record of Increasing Dividends:
Annualized
Dividend

%
Increase

September 2012

$0.40

11%

September 2011

$0.36

20%

September 2010

$0.30

50%

March 2007 (3:2 stock split)

$0.20

50%

June 2006

$0.13

100%

September 2005

$0.07

---

15

FY 2012 Outlook

Sales ($mm)

2012(1)

Increase
Over 2011

$1,633 - $1,646

8.0% - 8.9%

Comp store sales

4.5% - 5.5%
$1.20 - $1.28(2)

30% - 39%

Free Cash Flow ($mm) (3)

$50

56%

Capital Expenditures ($mm) (4)

$45

9%

EPS

(1)
(2)
(3)
(4)

This guidance was provided by the Company on November 15, 2012.
The EPS guidance range excludes one-time charges of $0.06 per share recorded in the first quarter associated with the resignation of the Company’s
former Chief Executive Officer.
Free Cash Flow = Net cash provided by operating activities less capital expenditures.
Net of construction allowances received from landlords.

16

QUESTIONS
&
ANSWERS

17

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