Total sales for the four-week October period were $98.6 million, a 7.3 percent decrease from the $106.3 million in sales for the same period in 2002. Comparable store sales for October decreased 7.6 percent from 2002 to 2003…

Merchandise categories with better comparable store sales performances during October were Ladies' Accessories, Ladies' Career Sportswear, and Intimate Apparel. Geographically, sales trends were better in Southern California, South Florida and along the Atlantic Seaboard.

“As anticipated, our move away from full-price coupon distribution continued to disadvantage our traffic flow and comparable sales in October,” noted Michael D. Fisher, president and chief executive officer of Stein Mart, Inc.

For the thirteen-week third quarter, sales were $315.9 million, a 5.1 percent decrease from the $332.8 million in sales for the third quarter of 2002. Comparable store sales decreased 5.8 percent from third quarter of 2002 to the third quarter of 2003. Management had predicted comparable store sales would decline in the negative, mid-single digit range against last year's 2.2 percent increase during the third quarter.

Total sales for the first 39 weeks of the fiscal year were $950.0 million, a 5.0 percent decrease from the $1.0 billion in sales for the same period in 2002. Comparable store sales decreased 7.0 percent from the same 39-week period of 2002.

At November 1, 2003, Stein Mart operated 264 stores compared with 266 stores last year.

Marketing Update

At the end of July, Stein Mart discontinued the generalized use of unrestricted, percentage-off coupons in favor of more limited “percentage-off sale or clearance only” shopping passes. On October 29, the Company launched its first national television advertising campaign centered around a new positioning line, “Once you go, you get it.” The campaign features actual Stein Mart customers, and showcases the Company's fashion merchandise, outstanding value and convenient locations. It airs on network and cable television, and is supported by print, radio, direct mail and in-store signage.