Stein Mart earnings fall, blames economy

JACKSONVILLE, Fla. Stein Mart reported earnings of $2.2 million or 5 cents per diluted share for the second quarter ended Aug. 4, compared to net income of $8.3 million or 19 cents per diluted share in 2006. Net sales decreased 1.7% to $330.7 million for the 2007 quarter from $336.3 million in 2006. Comparable-store sales for the quarter decreased 1.2% from last year.

For the first six months of 2007, the company earned $10.3 million or 24 cents per diluted share as compared to net income of $15.9 million or 36 cents per diluted share in 2006. Net sales increased 0.8% to $706.9 million for the 26 weeks ended Aug. 4 from $701.1 million for the 26 weeks ended July 29, 2006. Comparable-store sales for the 26 weeks ended Aug. 4 decreased 1.6% from the 26 weeks ended Aug. 5, 2006.

"We were disappointed by our performance in the second quarter, and remain concerned about the constrained selling environment in an uncertain economy," said Michael Fisher, president and ceo of Stein Mart. "We are taking a very conservative posture in terms of inventory management and continue to look for every opportunity to improve our productivity."

The company said it expects comparable-store sales to decrease 2% to 4% for the quarter ending Nov. 3. The company expects to report a loss of 3 cents to 6 cents per share for the quarter ending Nov. 3.