$SSI expects that the promotional environment will stay competitive and traffic will remain as a constraint in the fall season. The company expects improved performance in 2H16, helped by its initiatives, easier comparisons, more seasonable winter weather and the holiday deals and events.
$SSI closed on its acquisition of selected assets of Gordmans Stores, Inc. for the remainder of FY17, the acquisition is expected to contribute $230-245MM in revenue and be neutral to earnings, exclusive of acquisition costs. $SSI anticipates the addition of the Gordmans stores to be significantly accretive to earnings in FY18.
$SSI closed on its acquisition of selected assets of Gordmans Stores, Inc., including a minimum of 50 Gordmans store leases. $SSI expects to pay $35-40MM for the inventory, with the final amount to be determined following the completion of a post-closing physical inventory count and an additional $2-3MM for the other assets.
During 2016, $SSI closed 37 stores, completed 86 remodels, relocations and expansions. Store count at the end of 2016 was 798. The company said it has also made number of other capital investments during the year in technology, omni-channel and supply chain.
$SSI expects 2017 free cash flow (defined as net cash provided by operating activities less capital expenditures) to be positive within its provided guidance range. Capital expenditures in 2017, net of construction allowances from landlords, are expected to be $35-40MM, compared to $67MM in 2016.

$SSI slipped to a 4Q16 loss from a profit last year, due to lower sales and soft retail environment. Net loss was $6.84MM or $0.25 per share compared to a profit of $21MM or $0.71 per share last year. Net sales fell to $454.44MM from $502.63MM. Adjusted EPS decreased to $0.20 from $0.91. Comparable sales declined 8.5%.
$SSI entered into an amendment to its senior secured revolving credit facility. The amendment increases total capacity under the facility from $350MM to $450MM, including a $50MM seasonal increase and $25MM letter of credit sublimit. This also extends the term from Oct. 6, 2019 until Dec. 16, 2021.
Specialty department stores operator $SSI reported that 3Q16 sales and margins were hurt by soft traffic, primarily due to unseasonably warm weather and other macro headwinds. Comp sales were down 8.2%. To invest in the holiday season, $SSI reduced marketing and store expense during the first nine months of 2016.
$SSI expects 4Q16 comparable sales to be down 6-2% and EPS of $0.65-0.90. Weighted average diluted shares are expected to be $28.3MM. For 2016, $SSI lowered comparable sales outlook to range of down 8-7% from down 6-4%. $SSI now sees adjusted loss per share of $0.40-0.15 compared to prior adjusted EPS estimate of $0.20-0.40.

Department store operator $SSI reported a wider 3Q16 loss due to difficult retail environment, unseasonably warm weather, weak peso, and ongoing depressed oil prices pressure. Net loss widened to $15.63MM or $0.58 per share from $10.18MM or $0.32 per share last year. Sales fell 9.8% to $317.14MM. Adjusted loss per share widened to $0.57 from $0.29.
Specialty retailer $FRAN said Steven Lawrence, most recently Chief Merchandising Officer for $SSI, will be President and CEO, effective Oct. 2016. Lawrence is also appointed to the company's BoD. Richard Kunes who has been Interim Chairman, President and CEO will become Company's Chairman of the Board.
Heather Balsky of Bank of America asks about the performance at 200 renovated stores. $SSI CFO Oded Shein said that sales were difficult across the board in 2Q16. He added that the performance was better in the renovated stores than the rest of the chain. $SSI expects that the performance of renovated stores would help it in the fall season.
David Mann of Johnson Rice asks how the back-to-school season started for $SSI. Chief Merchandising Officer Steven Lawrence said that the company has a lot of stores in Texas and it was happy with the results of the first weekend in August. He cautioned that the company still has to do a lot of business for back-to-school.