Stein Mart net income dips; 10 stores planned

Jacksonville, Fla. – Earnings dipped at Stein Mart Inc. during the first quarter of fiscal 2015, even as net sales improved. Net income fell 3% to $13.6 million from $14.1 million a year earlier, with higher loan interest expense a major contributor.



Net sales increased 7% to $353.5 million, from $328.9 million. Same-store sales rose 4.8%. Higher store traffic and e-commerce sales boosted same-store sales results.



Stein Mart intends to close three stores and relocate one store in 2015. A new store planned in San Clemente, California, planned for the fall has shifted to first quarter 2016. The additional closing is the result of a relocation planned for 2016 that is now closing in 2015 and reopening as a new store in 2017.



Jay Stein, CEO, focused on positive sales performance in his remarks:



"We are extremely pleased with our solid same-store sales increase for the quarter and the performance of our new stores," said Stein. "Our inventories are in great shape. As planned, our gross profit rate will improve as the year proceeds and our expenses will continue to leverage against our higher sales. This should be more evident beginning with our second quarter results."