Stein Mart, Inc. reports that net sales for fiscal October increased 1.4% to $113.7 million from $112.1 million in the year-ago month. Comparable store sales, however, declined 3.8% for the period.

Total Sales (in millions)        Percent Change

                                                       Total     Comparable

                              2007         2006        Sales     Store Sales


    October (4 weeks)       $113.7       $112.1         1.4%       (3.8)%

    Third Quarter

     (13 weeks)             $333.4       $339.2        (1.7)%      (6.3)%

    Year to date

     (39 weeks)           $1,040.2     $1,040.3         0.0%       (3.1)%

During October, Ladies' Boutique, Special Sizes and Intimate Apparel had positive sales performances, while the company's stores located in the Mid- Atlantic up through Ohio and Pennsylvania outperformed the Company average.

“Although we had a positive response to an additional promotional event mid-month, our business remains difficult,” commented Stein Mart's president and chief executive officer, Linda M. Farthing. “We are determined to improve revenue growth and reduce controllable expenses, and remain focused on creating opportunities to drive business with a strong value message as we enter this holiday season.”


Fall 2007 Store Opening Schedule


In October, six new stores opened and one location was closed, for a total of eight stores opened and two closed in the quarter, resulting in 276 stores open on November 3, 2007 as compared to 265 stores at the same time last year.


Two more stores (Las Vegas, NV and Succasunna, NJ) open today, and the final two store openings of 2007 will take place later this month. At year- end, Stein Mart expects to have 280 stores compared to 268 stores at the end of 2006.


Revised Guidance


While the 6.3% decrease in comparable store sales for the third quarter was within the estimated range, expenses for the quarter were less than previously projected, due primarily to the delayed opening of some new stores and, to a lesser extent, ongoing expense reduction initiatives. Additionally, there was a reduction in the effective tax rate. Management now expects the company's loss for the third quarter ending November 3, 2007 to be between 6 cents and 8 cents per diluted share, which includes approximately 3 cents per share for costs related to the transition of the president/CEO position during the period.