Stein Mart, Inc. reported comparable store sales fell 2.5% in January. Total sales fell 19.1% to $81 million from $100.1 million.
The retailer, based in
For the fourth quarter, sales dropped to $417.4 million from $461 million. Comps fell 6.2%.
For the year, sales fell to $1,457.6 million from $1,501.3 million; comps dropped 4%.
“We took an especially aggressive promotional stance in order to clear seasonal merchandise in January,” noted Linda M. Farthing, president and chief executive officer of Stein Mart, Inc. “The deeper discounting was costly in terms of markdowns, but allowed us to drive traffic, generate additional comparable store sales and, most importantly, make progress toward our goal of a leaner inventory position for spring.”
During January, ladies' social occasion and dresses, special sizes, and intimate apparel had positive comparable store sales. Geographically, comparable stores sales trends were slightly positive in most of the company's markets, with notable exceptions in
Guidance
Management now expects fourth quarter operations will produce a net loss of $(0.28) to $(0.33) per diluted share, pending the completion of the fiscal year-end audit. Full financial results for the fourth quarter and fiscal year 2007 will be reported before the
The company's board of directors has voted to suspend the quarterly cash dividend to shareholders.
“Our decision to suspend the cash dividend, along with our earlier action to moderate new store openings, will give us more flexibility as we navigate current industry conditions,” commented Jay Stein, chairman of the board.
