Stein Mart Inc declares Q2 & six-month results

18 Aug '05

4 min read

Comparable stores sales increased 3.1 percent from the first six months of 2004 to the first six months of 2005. Gross profit increased to $208.0 million, or 29.0 percent of net sales in the first half of 2005 compared to $182.7 million or 26.7 percent of net sales during the same period of 2004. The improvement in the gross profit rate was due to improved mark-up and decreased markdowns. Selling, general and administrative costs were $170.5 million as compared to $161.9 million, approximately flat at 23.8 percent of sales during the same period in both years.

"They experienced strong, regular-price selling of fashion assortments throughout the spring/summer season and continue to enjoy early success with transition and fall assortment, due to the continual flow of fresh merchandise into the stores," commented Michael D. Fisher, President and Chief Executive Officer. "Customers have also responded favorably to their accelerated clearance cycle, resulting in inventories that are basically flat to last year at the end of the quarter."

Fisher continued, "They are very pleased that we produced such strong earnings growth on a more normalized comparable store sales increase, and believe that this further validates the strategic direction which have been implementing over the past several years."

Expectations for third quarter
Comparable store sales for the third quarter ending October 29, 2005 are expected to increase in the mid-single-digit range, resulting in diluted earnings per share of $0.03-$0.05. In 2004, comparable store sales for the third quarter increased 6.6 percent and produced a net loss of $(0.05) per diluted share.

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