NEW YORK(TheStreet) -- Regional department stores are slowly rebounding and are forecasting continued improvement for the remainder of the year.
Stein Mart (SMRT), for one, posted a surprise profit in the third quarter, as it significantly cut costs, sending shares soaring in morning trading.
During the quarter, the department store earned $3.2 million, or 7 cents a share, compared with a loss of $14.1 million, or 34 cents, in the year-ago period. Analysts expected the company to lose 7 cents a share.
Revenue fell nearly 10% to $270.7 million, while same-store sales sank 6.2%.Selling, general and administrative costs tumbled 22% to $73.3 million, as Stein Mart cut jobs and salaries and closed stores. The company also attributed some of the gains to a change in its tax accounting method. Shares are climbing 9.8% to $11.22 in morning trading.
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