Stein Mart, Inc. saw comparable store sales decrease 5.9% for the month of July. Total sales decreased 5.4% to $82.8 million from $87.5 million in the year-ago month.
Total Sales Percent Change
Total Comparable
Fiscal Period: 2006 2005 Sales Store Sales
July (4 weeks) $ 82.8 $ 87.5 (5.4)% (5.9)%
Second quarter (13 weeks) $336.3 $337.1 (0.2)% (0.8)%
Year to date (26 weeks) $701.1 $717.7 (2.3)% (3.1)%
In July, the best performances came from ladies dresses, social separates, special sizes and intimate apparel. The fashion areas of the new home assortment (furniture, seasonal, and top-of-bed) continue to show progress, and the exit of the Children’s business continues on schedule. Geographically, sales continued to be positive along the Gulf coast and were stronger than the company average in California and the west.
“We are disappointed with our July and second quarter results,” said Michael D. Fisher, president and chief executive officer for Stein Mart, Inc. “The performance shortfall occurred primarily from having less clearance merchandise than last year in a very clearance-focused month, as well as some initial learning issues with the new price optimization system, which produced earlier and heavier markdowns than planned. We believe we have resolved the integration problem with the price optimization system and expect to see the benefits from its installation in the second half of the year.”
There were 261 Stein Mart stores in operation at the end of July 2006 as compared to 259 stores at the same time last year.
Earnings Guidance
With the sales shortfall in the second quarter, management now expects earnings per share to be approximately 18 cents for the period.
