Stein Mart, Inc. announced total sales for the fiscal month of September decreased 2.4% to $125.6 million from $128.7 million last year. Comparable store sales decreased 3.9% for the month.
Stein Mart, Inc. announced total sales for the year-to-date period increased 4% to $941.4 million from $905.5 million last year. Comparable store sales increased 2.4% for the period.
The best performing categories were ladies' career sportswear and intimate apparel. Social occasion separates were also strong. Geographically, comparable store sales were strongest in Florida and in the western part of the country.
The company operated 261 stores on October 1, 2005 as compared to 258 stores at the same time last year.
Hurricane Impact
Over the past five weeks, Hurricanes Katrina, Ophelia and Rita caused 41 Stein Mart stores in several states to either limit hours or close altogether for a total of 289 impacted store-days. Although all but three Stein Mart stores (two in New Orleans, one in Lake Charles, LA) are back in operation, four stores in New Orleans were closed for nearly one month after Hurricane Katrina and two more stores (in Beaumont, TX, and Lake Charles, LA) were closed for more than a week after Hurricane Rita. Management estimates $3.5 million in sales was lost during the month of September due to stores that were closed for at least one day. The Company does expect to receive insurance compensation for the most severely damaged stores and stores that were closed for numerous days.
“The hurricane activity which began in late August substantially disrupted our September business, but we are grateful that our associates are accounted for and that most of our stores reopened soon after essential services were restored,” noted Michael D. Fisher, president and chief executive officer of Stein Mart. “Although we were disappointed with sales across the country during September, our customers are responding favorably to the new fall merchandise and we believe our assortment is on trend for the season.”
Management now anticipates comparable store sales for the third quarter to be flat to last year, which would produce earnings from flat to 2 cents per share as compared to last year's loss of 5 cents per share.
Quarter-end News Release Date
Full financial results for the company's third quarter ending October 29, 2005 will be released prior to the opening of the financial markets on Thursday, November 17, 2005.
Company purchases markdown optimization software
Stein Mart has entered into an agreement with Oracle Retail to utilize its retail price optimization software (formerly known as ProfitLogic) to enhance markdown decision-making throughout the store network. This decision complements Stein Mart's ongoing commitment to the freshest inventory possible by increasing the timeliness, predictability and efficiency of markdown decisions. Stein Mart will also work with Oracle Retail to implement a regional pricing strategy to better understand customer demand of individual items, by location.
