Stein Mart July Comps Increase 1.6%

Stein Mart, Inc. announced net sales and comparable store sales for the fiscal period ended July 31, 2004, as follows (dollars in millions):

                               Total Sales              Percent Change
  Fiscal Period:                                      Total     Comparable
                             2004         2003        Sales     Store Sales
  July (4 weeks)            $81.8        $80.5         1.6%         6.2%

  Second quarter           $320.6       $303.5         5.6%        10.3%
   (13 weeks)
  Year to date             $685.2       $634.1         8.1%        11.1%
   (26 weeks)

All the ready-to-wear divisions continued to perform well as did ladies' accessories and intimate apparel. Geographically, sales were positive in all regions.

“The liquidation of seasonal merchandise, as well as good sell-through in transition apparel proved to be a compelling combination during July,” noted Michael D. Fisher, president and chief executive officer of Stein Mart, Inc. “Our blend of sales produced better margins, and combined with beneficial expense performance, we now expect earnings per share of approximately $0.12 for the quarter.”

There were 257 stores in operation at the end of July 2004, as compared to 270 stores at the same time last year.