Stein Mart, Inc. recorded a 2.1% increase in net sales for the month of July to $84.5 million from $82.8 million in the year-ago period. Comparable store sales for the month decreased 3.4%.
Total Sales (in millions) Percent Change
2007 2006 Sales Store Sales
July (4 weeks) $ 84.5 $ 82.8 2.0% (3.4)%
Second Quarter (13 weeks) $330.7 $336.3 (1.7)% (1.2)%
Year to date (26 weeks) $706.9 $701.1 0.8% (1.6)%
During July, comparable stores sales were positive in ladies' career, ladies' accessories, social occasion/dresses, special sizes and intimate apparel. Geographically, sales were positive in the Mid-Atlantic States and portions of the Midwest. Sales in Florida and along the Gulf Coast continue to be below company trend.
On August 4, 2007, there were 270 Stein Mart locations, compared to 261 stores last year.
“July sales fell short of our projections and more markdowns were required to achieve our targeted inventory levels. We ended the second quarter with less inventory in an average store than last year, and on track to reach the desired level of inventory freshness as we enter the fall season,” commented Michael D. Fisher, president and chief executive officer of Stein Mart, Inc. “We recognize the continued weakness in the consumer environment and we are working aggressively to make sure we are properly positioned to take advantage of opportunities going forward.”
Due to the sales shortfall in the period and increased markdowns needed to clear seasonal inventory, management now expects to earn $0.05 per diluted share for the second quarter of 2007.