Stein Mart, Inc. Reports Third Quarter Fiscal 2016 Results

JACKSONVILLE, Fla., Nov. 17, 2016 (GLOBE NEWSWIRE) -- Stein Mart, Inc. (NASDAQ:SMRT) today announced financial results for the third quarter ended October 29, 2016.

Third Quarter Highlights
  • Total sales decreased 0.4 percent and comparable store sales decreased 4.6 percent
  • Diluted loss per share of $0.24 compared to $0.01 loss in 2015
  • Eight new stores opened this quarter to complete 2016 plan for 290 stores at year-end

Net loss for the third quarter was $11.0 million or $0.24 per diluted share compared to net loss of $0.2 million or $0.01 per diluted share in 2015. For the first nine months of 2016, net income was $5.3 million or $0.11 per diluted share compared to $17.5 million or $0.37 per diluted share in the same period in 2015.

Adjusted earnings before interest, income taxes, depreciation and amortization (EBITDA) for the first nine months was $42.5 million compared to $55.7 million in 2015 (see Note 1).

"We introduced new marketing and promotional changes, as well as new merchandising strategies, during the quarter which were not embraced by our customer. The promotional changes were particularly impactful on our ability to clear spring merchandise on a timely and profitable basis during the quarter. As a result, we took significant markdowns to liquidate spring inventories. The lower gross profit rate also reflects higher occupancy costs, mostly from new stores, which negatively leverage on lower comparable store sales," said Hunt Hawkins, Interim Chief Executive Officer.

"As we look forward to the fourth quarter, we have returned our marketing and promotions to what has worked in the past as we explore a better strategy, but the challenging retail environment will likely continue to drive higher markdowns as we diligently work to enter 2017 with the right inventories. A bright spot in this environment is our new fall stores, which are performing above plan."

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