Good News: Stein Mart Soars 43% on Report

Stein Mart more than doubles its profit, sending shares soaring over 43%.
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Department store Stein Mart (SMRT) - Get Report more than doubled its first-quarter profit as it reduced expenses, sending its shares soaring over 43% in morning trading.

During the quarter, the company earned $16.1 million, or 38 cents a share, far surpassing analysts' estimates of 16 cents. This compares with a profit of $7 million, or 17 cents, a year ago.

Stein Mart did it with the knife -- slashing its selling, general and administrative expenses to $79.9 million from $91.5 million. In January, the company had announced that it would cut jobs, reduce salaries and suspend its corporate matching contribution to 401(k) and deferred compensation plans.

Quarterly sales dropped 9% to $319.6 million from $352.1 million, while same-store sales fell 8%.

"While our conservative outlook regarding the macro environment persists, we believe our re-focused brand strategy and the new marketing initiatives are beginning to gain traction, and will be key to our long-term success," President and CEO David H. Stovall, Jr. said in a statement.

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