Stein Mart, Inc. announced financial results for the first quarter ended May 3, 2014.
-Comparable store sales increased 2.6 percent.
-Adjusted diluted earnings per share of $0.32 compared to $0.33 in 2013.
-Adjusted EBITDA increased $0.8 million to $32.4 million
Overview of Results
Net income for the first quarter was $14.1 million or $0.31 per diluted share compared to net income of $14.7 million or $0.33 per diluted share in 2013. First quarter adjusted net income was $14.7 million or $0.32 per diluted share compared to adjusted net income of $14.6 million or $0.33 per diluted share in 2013.
Adjusted earnings before interest, income taxes, depreciation and amortization ("EBITDA") for the first quarter increased $0.8 million to $32.4 million, compared to adjusted EBITDA of $31.6 million in 2013.
Comments on Results
"We are pleased with our operating performance thus far this year, which included a solid comp sales increase for the quarter once the weather improved," said Jay Stein, Chief Executive Officer. "Our planned growth investments in new stores and ecommerce, as well as the timing of our annual advertising spend, caused our earnings to be below last year. We continue to be excited about our growth opportunities as we open more stores and continue to produce solid same store sales results."
Comparable store sales for the first quarter of 2014 increased 2.6 percent over the first quarter ended May 4, 2013. Total sales for the first quarter were $328.9 million compared to $321.4 million for the first quarter of 2013.
Gross profit for the first quarter of 2014 was $104.3 million or 31.7 percent of sales. Including the $3.0 million impact of the fourth quarter 2013 accounting estimate change, adjusted gross profit for the first quarter of 2013 would have been $100.9 million or 31.4 percent of sales.
Selling, General and Administrative Expenses
Selling, general and administrative ("SG&A") expenses for the first quarter of 2014 were $81.2 million. Including the $4.1 million impact of the fourth quarter 2013 accounting estimate change, SG&A expenses for the first quarter of 2013 would have been $77.7 million. The $3.5 million increase over adjusted 2013 SG&A expenses is primarily the result of higher advertising and store selling expenses. Advertising expense is higher in the first quarter this year primarily due to the addition of television to support our more extensive April dress event and increases to drive first quarter sales. Store selling is higher due to planned payroll increases and new and relocated stores.