Stein-Mart, Inc. reported for the 13-week second quarter of 2009, the company's net earnings were $1.5 million, or 4 cents per share as compared to a net loss of $8.0 million, or 19 cents per share in 2008.
Gross profit increased to $75.4 million, or 26.2% of sales in the second quarter of 2009 compared to $74.1 million or 23.8% of sales in the same period last year. The gross profit rate increased primarily from increased markup and decreased markdowns, somewhat offset by a higher occupancy expense rate due to lack of sales leverage.
Selling, general and administrative (SG&A) expenses were $74.2 million or 25.8% of sales as compared to $92.5 million or 29.7% of sales during the same period last year. The $18.3 million decrease in SG&A resulted primarily from reduced operating expenses in the stores and in the corporate office, and reduced advertising and lower depreciation expense.
Stein Mart, Inc. Reports 2Q and First Half 2009 Financial Results
Press Release
Source: Stein Mart, Inc.
On Thursday August 20, 2009, 7:30 am EDT
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JACKSONVILLE, Fla., Aug. 20 /PRNewswire-FirstCall/ — Stein Mart, Inc. (Nasdaq: SMRT – News) today announced financial results for its second quarter and first half ended August 1, 2009.
Second Quarter of 2009
For the 13-week second quarter of 2009, the Company's net earnings were $1.5 million or $0.04 per share as compared to a net loss of $(8.0) million or $(0.19) per share in 2008. Net sales decreased 7.7 percent to $287.5 million for the 13 weeks ended August 1, 2009 from $311.6 million for the 13 weeks ended August 2, 2008. Comparable store sales for the 13 weeks ended August 1, 2009 decreased 4.5 percent from the same period a year ago.
Gross profit increased to $75.4 million or 26.2 percent of sales in the second quarter of 2009 compared to $74.1 million or 23.8 percent of sales in the same period last year. The gross profit rate increased primarily from increased markup and decreased markdowns, somewhat offset by a higher occupancy expense rate due to lack of sales leverage.
Selling, general and administrative (SG&A) expenses were $74.2 million or 25.8 percent of sales as compared to $92.5 million or 29.7 percent of sales during the same period last year. The $18.3 million decrease in SG&A resulted primarily from reduced operating expenses in the stores and in the corporate office, and reduced advertising and lower depreciation expense.
First Half of 2009
For the first half of 2009, the Company's net earnings were $17.6 million or 41 cents per share as compared to a net loss of $1.0 million or 2 cents per share for the same 2008 period. Net sales decreased 8.5% to $607.1 million for the 26 weeks ended August 1, 2009 from $663.8 million for the same 26 weeks in 2008.
Gross profit increased to $172.3 million or 28.4% of sales in the first half of 2009 compared to $171.9 million or 25.9% of sales in the same period last year. The gross profit rate increased primarily from increased markup and decreased markdowns, somewhat offset by higher occupancy expense rate due to lack of sales leverage.
SG&A expenses were $154.1 million or 25.4% of sales as compared to $184.1 million or 27.7% of sales during the same period last year. The $30.0 million decrease in SG&A resulted primarily from reduced operating expenses in the stores and in the corporate office, and reduced advertising and lower depreciation expense.
We changed from using the discrete period method to determine the effective tax rate in the first quarter to a more normalized rate of 35.4% for the first six months of 2009 that was calculated using the estimated annual tax rate. If the estimated annual rate had been able to be used for both the first and second quarters of 2009, second quarter earnings would have been $2.1 million or 5 cents per share higher with an offsetting decrease in the first quarter.
David H. Stovall, Jr., president and chief executive officer, commented, “By keeping inventory and expenses tightly controlled, we were able to improve margins and profitability for both the quarter and the first six months, despite negative comparable store sales trends. These efforts also further strengthened our balance sheet, with no borrowings in the quarter and $45 million in cash and cash equivalents at quarter end.”
Stovall continued, “We must continue to make progress against a protracted negative sales trend with limited visibility for the foreseeable future. Although the customer is still very cautious, response to our updated merchandise offering and new marketing strategy is encouraging. We plan to build on these efforts this fall, while maintaining rigorous control over expenses and inventory levels.”
