Stein Mart delivers 4Q profits, but sales slide

JACKSONVILLE, Fla. -- Stein Mart announced that net incomefor the fourth quarter was $18.8 million or 42 cents per diluted share compared with net income of $2.7 million or 6 cents per diluted share in 2009. Excluding the impact of a favorably tax benefit, fourth-quarter net income increased to $14.6 million or 32 cents per diluted share compared with $8.7 million or 19 cents per diluted share in 2009.

For the year, net income was $48.8 million or $1.08 per diluted share compared to net income of $23.6 million or 54 cents per diluted share in 2009.

“We are pleased to have delivered strong fourth-quarter and full-year profitability,” said David H. Stovall, Jr., president and chief executive officer of Stein Mart. “The higher operating income and operating margins for the quarter and year reflect the benefits of our streamlined cost structure and enhanced inventory management. I would like to thank our associates for their continuing dedication to serving our customers and their contribution to achieving these results.”

Sales for the fourth quarter were $336.7 million, a decrease of 1.5% from $341.8 million in 2009. Comparable-store sales decreased 1.2% for the fourth quarter 2010. For the year, sales were $1.2 billion, a decrease of 3.1% from $1.21 billion in 2009. Comparable-store sales decreased 1.8% for the fiscal year 2010.

Stein Mart said it plans to open three to five stores, close three to five stores and relocate approximately five stores to better locations in their respective markets in 2011.