Stein Mart, Inc. saw March sales decrease 11.8% to $109.3 million from $124.0 million during the same month last year. For the same period, comparable store sales decreased 13.9%.
Total Sales (in millions) Percent Change
Total Comparable
2007 2006 Sales Store Sales
April (4 weeks) $109.3 $124.0 (11.8)% (13.9)%
First Quarter (13 weeks) $376.1 $364.8 3.1% (2.0)%
During April, sales of intimate apparel and social occasion/dresses were positive, while ladies' casual and special size sportswear, and men's furnishings, were better than the company trend, although still negative. Geographically, all four regions experienced significant declines in comparable store sales during the month, with Texas notably impacted by a series of severe weather events. California and some coastal sections of the southeast performed marginally better than the company average.
“As anticipated, April sales were disadvantaged by this year's earlier Easter which benefited sales in March; this deficit was compounded by widespread and enduring record cold weather at the beginning of April that effectively halted our promising start to spring apparel selling,” noted Michael D. Fisher, president and chief executive officer of Stein Mart, Inc. “While April sales improved in subsequent weeks, they did not offset the substantial weakness in the early part of the month.”
On May 5, 2007, there were 270 Stein Mart locations, compared to 263 stores at the same time last year.
Guidance
Although the company was on track at the end of March to meet its initial earnings guidance for the first quarter, April's sales shortfall had a significant negative impact on planned results. Management now expects first quarter 2007 earnings will slightly exceed the 17 cents per share earned during the same period last year.
