Stein Mart sees some improvement in Q3
Stein Mart is slowly making progress in its turnaround.
The retailer narrowed its operating loss to $13.4 million in the quarter ended Nov.3, from $23.9 million in 2017.
Stein Mart reported a net loss of $16.6 million or $0.36 per share, amid higher interest expenses, compared to a net loss of $14.6 million, or $0.31 per share, in the year-ago period. (The net loss for 2017 includes an income tax benefit of $10.4 million or $0.22 per share, compared to no income tax benefit in 2018.
Net sales were $279.1 million, down from $285.4 million last year. The company said the sales drop reflected the closing of seven underperforming stores this year. Same-store sales rose 1.4%. E-commerce sales were up 76% over last year’s third quarter.
Stein Mart, which has been investing in e-commerce initiatives and working to streamline its inventory and decrease promotions, said that its core apparel businesses all performed very well during the quarter.
“We are pleased with our second consecutive quarter of comparable sales increases and continued gross profit expansion driven by higher regular priced selling,” said Hunt Hawkins, CEO. “While better than last year, our third quarter pre-tax operating results were lower than we expected due to disruption caused by the hurricanes and fees associated with the successful renegotiation of our credit agreements which expanded our credit limit and extended the term.”
Looking ahead, Hawkins said the company expects better comparisons against clearance selling that normalized in the fourth quarter last year.
“This, along with our higher gross profit rate and lower expenses have us well-prepared for a profitable fourth quarter,” he said.
Stein Mart had 288 stores at the end of the quarter compared to 293 at the end of the third quarter last year.
The retailer narrowed its operating loss to $13.4 million in the quarter ended Nov.3, from $23.9 million in 2017.
Stein Mart reported a net loss of $16.6 million or $0.36 per share, amid higher interest expenses, compared to a net loss of $14.6 million, or $0.31 per share, in the year-ago period. (The net loss for 2017 includes an income tax benefit of $10.4 million or $0.22 per share, compared to no income tax benefit in 2018.
Net sales were $279.1 million, down from $285.4 million last year. The company said the sales drop reflected the closing of seven underperforming stores this year. Same-store sales rose 1.4%. E-commerce sales were up 76% over last year’s third quarter.
Stein Mart, which has been investing in e-commerce initiatives and working to streamline its inventory and decrease promotions, said that its core apparel businesses all performed very well during the quarter.
“We are pleased with our second consecutive quarter of comparable sales increases and continued gross profit expansion driven by higher regular priced selling,” said Hunt Hawkins, CEO. “While better than last year, our third quarter pre-tax operating results were lower than we expected due to disruption caused by the hurricanes and fees associated with the successful renegotiation of our credit agreements which expanded our credit limit and extended the term.”
Looking ahead, Hawkins said the company expects better comparisons against clearance selling that normalized in the fourth quarter last year.
“This, along with our higher gross profit rate and lower expenses have us well-prepared for a profitable fourth quarter,” he said.
Stein Mart had 288 stores at the end of the quarter compared to 293 at the end of the third quarter last year.