Stein Mart, Inc. announced total sales declined 5.4% in December to $211.8 million and comparable store sales for the fiscal period fell 6.1% during the month of December, 2005.

Results as follows (dollars in millions):

Total Sales Percent Change
Fiscal Period: Total Comparable
2005 2004 Sales Store Sales
December (5 weeks) $211.8 $224.0 (-5.4%) (-6.1%)
Quarter to date (9 weeks) $347.1 $364.3 (-4.7%) (-5.3%)
Year to date (48 weeks) $1,401.4 $1,379.9 1.6% 0.3%

The best performing categories were ladies' career sportswear and men's sport clothing and furnishings. Geographically, the best results were in south Florida, east Texas and Arizona.

“December sales were below our expectations. Men's and ladies' apparel sales were basically flat to last year, when we achieved a 10.3% comparable store sales increase; apparel inventory is at an appropriate level to efficiently clear the remaining fall and holiday merchandise and to receive early spring assortments,” commented Michael D. Fisher, president and chief executive officer. “However, December's results were most dramatically impacted by a double digit sales decrease in the home division due to significant reductions in the overall home and holiday decor inventories.”

As previously noted, the home business (which includes linens and gifts) has lagged the Company's performance this year, and a new merchandise strategy is being deployed. Liquidation of phased-out merchandise has been underway this fall and, as a result, home division inventories decreased double-digits from last year's December levels. Delivery of merchandise and installation of fixtures reflecting the new home division strategy will be complete in the first quarter of 2006.

Management now anticipates comparable store sales for the fourth quarter to be down 5 – 6 percent to last year, which would produce earnings of $0.36 – $0.39 per share, as compared to last year's earnings of $0.54 per share with an 8.0 percent increase in comparable store sales. For the current fiscal year, management expects earnings per share to be $1.03 to $1.06 compared to $0.89 per share earned in fiscal 2004.

The Company operated 262 stores on December 31, 2005 as compared to 261 stores at the same time last year.