Stein Mart, Inc. announced total sales for the month of January slipped 0.5% to 80.2 million and comparable store sales for the fiscal period declined 0.4%.


                                     Total Sales             Percent Change
    Fiscal Period:                 This        Last        Total   Comparable
                                   year        year        Sales   Store Sales
    January (4 weeks)             $80.2        $80.6       (0.5)%     (0.4)%
    4th quarter (13 weeks)       $427.4       $444.9       (4.0)%     (4.4)%
    Fiscal year (52 weeks)     $1,481.6     $1,460.5        1.4 %      0.2 %

In January, the best performing categories were ladies' career sportswear, special sizes and social occasion dressing. Sales in the home division, including gifts and linens, were positive for the month. Geographically, the best results were in the Gulf Coast region, the Ohio River Valley and the mid- Atlantic.

“Our business accelerated in the second half of the month in response to our prior season inventory liquidation, as well as a stronger flow of new merchandise,” commented Michael D. Fisher, president and chief executive officer. “We are pleased with the status of our seasonal clearance, and we are seeing a favorable response to deliveries of new apparel and new home merchandise.”

As a result of better-than-projected sales during January, management now expects net income from fourth quarter operations to slightly exceed previous guidance of $0.36 – $0.39 per share. Full financial results for the Company's fourth quarter and fiscal year will be released prior to the opening of the financial markets on Thursday, March 16, 2006.

The Company operated 262 stores on January 28, 2006 as compared to 261 stores at the same time last year. One of the Company's stores in New Orleans that had been closed since Hurricane Katrina re-opened January 19, 2006.