$SSI Stage Stores Jan 2013 Corporate Investor ICR Presentation Slides Deck PPT PDF

7/29/2019 $SSI Stage Stores Jan 2013 Corporate Investor ICR Presentation Slides Deck PPT PDF

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11111

15th Annual ICR

XChange Conference

January 16, 2013


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Safe HarborSafe Harbor

This presentation containsThis presentation contains forwardforward--looking statementslooking statements..These forwardThese forward--looking statements are subject to a number oflooking statements are subject to a number ofrisks and uncertainties which could cause actual results torisks and uncertainties which could cause actual results to

differ materially from those anticipated by these forwarddiffer materially from those anticipated by these forward--looking statements. These risks and uncertainties include, butlooking statements. These risks and uncertainties include, butare not limited to, those described in the Companyare not limited to, those described in the Companys Annuals AnnualReport on Form 10Report on Form 10--K as filed with the SEC on March 28, 2012K as filed with the SEC on March 28, 2012

and other factors as may periodically be described in otherand other factors as may periodically be described in otherCompany filings with the SEC.Company filings with the SEC.

This presentation was prepared as of January 4, 2013, andThis presentation was prepared as of January 4, 2013, and

the Company assumes no obligation to update the informationthe Company assumes no obligation to update the informationor the forwardor the forward--looking statements contained herein.looking statements contained herein.


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Small Town Stores - Overview

Americas Leading Small Town Retailer

Competitive advantages: brand-focused merchandise, acost-effective business model and a unique real estatestrategy Average rent is $4.15/sq ftamong the lowest in the industry

544

158129

150,000

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

Nameplates: Bealls,Goodys, Palais Royal,

Peebles, Stage 65% of stores and 59%

of sales are in townswith a market area

population below 50,000 Our small towns are

under-served marketswith limited competition

65% 19% 16%


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Expanding Footprint in Small Town America


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Merchandise Strategy

~85% name brand merchandise

Branded merchandise for the entire family (% of LTM sales)

Womens/Juniors (39%)

Mens/Young Mens (17%)

Footwear (13%)

Childrens (12%) Accessories (8%)

Cosmetics (8%)

Home & Gifts (3%)

Estee Lauder and Clinique treatment products in morethan 200 stores


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We Bring Name Brands To Small Markets


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New Management Team

Michael Glazer

Steve Lawrence

Ed Record

Bill Gentner

Oded Shein

.

President & CEO

Chief Merchandising Officer

Chief Operating Officer

SVP Marketing

Chief Financial Officer

NAME POSITION

March 2012

April 2012

May 2007

June 2012

Jan 2011

STARTED

(Member of Board since Aug 2001)


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Selected Financial Results

Increase

Over 2011

YTD Sales (11 Mos.) 8.3%YTD Comp Store Sales (11 Mos.) 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 associatedwith the resignation of the Companys former Chief Executive Officer.


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Growth Initiatives

+ Merchandising

+ Enhanced PLCC Loyalty Program

+ Direct-To-Consumer

+ Steeles

+ Traditional Stores Growth


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Merchandising Initiatives

New Brands layer-up with higher profile vendorsacross 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


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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 andcards reissued in November 2012


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Direct-To-Consumer (DTC)

Accelerate the growth of ourDTC business: DTC combines eCommerce

and Send Program $15 million in sales for 2011

$25 million in sales for 2012

+$100 million in sales by 2016 $15$25

$42

$62

$85

$108

0.99%

1.50%

2.50%

3.50%

4.60%

5.60%

0

20

40

60

80

100

120

2011 2012E 2013E 2014E 2015E 2016E

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

Sales ($mm)

Sales Penetration (%)


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Stage is able to leverage its small market expertise

Identified a unique opportunity: fills off-price void insmall 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 Steeles stores across 7 states

Steeles Small Town Off-Price Concept

New Steeles Concept

Value pricing 30% to 60% offdepartment stores

Median household income < $35,000 Treasure hunt mentality

Brand name fashions for the family,accessories, shoes and home dcor


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56 new stores opened in2012 25 Traditional Stores 31 Off-Price stores

Goal of 1,100+ storesby the end of 2015

950 Traditional stores 150 - 200 Off-Price stores

New Store Growth

30

3

0

200

400

600

800

1000

1200

2002 2011 2012E 2015E

Off-Price Stores

Traditional Stores

354 810 830 950

150

343

2527 33 34

0

10

20

30

40

50

60

2009 2010 2011 2012

Off-Price Stores

Traditional Stores

31

3


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Financial Strength and Shareholder Value

Financial Strength

Stage has the financial strength to fund its growth and return capital toits shareholders

Solid balance sheet with strong net cash position forecasted at yearend

$250 million credit facility with no borrowings at year end

Track Record of Increasing Dividends:

11%$0.40September 2012

$0.07

$0.13

$0.20

$0.30

$0.36

AnnualizedDividend

---September 2005

100%June 2006

50%March 2007 (3:2 stock split)

50%September 2010

20%September 2011

%Increase


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FY 2012 Outlook

(1) This guidance was provided by the Company on November 15, 2012.(2) The EPS guidance range excludes one-time charges of $0.06 per share recorded in the first quarter associated with the resignation of the Companys

former Chief Executive Officer.(3) Free Cash Flow = Net cash provided by operating activities less capital expenditures.(4) Net of construction allowances received from landlords.

56%$50Free Cash Flow ($mm) (3)

9%$45Capital Expenditures ($mm) (4)

30% - 39%$1.20 - $1.28(2)EPS

4.5% - 5.5%Comp store sales

8.0% - 8.9%$1,633 - $1,646Sales ($mm)

Increase

Over 20112012(1)


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QUESTIONS

&ANSWERS

Documents

$SSI Stage Stores Jan 2013 Corporate Investor ICR Presentation Slides Deck PPT PDF