Stein Mart posts quarterly loss

JACKSONVILLE, Fla. Stein Mart today reported a net loss of $12.1 million or 30 cents per diluted share compared to net income of $21.1 million or 48 cents per diluted share in 2006. Sales for the quarter were $417.4 million, a decrease of 9.4% from sales of $461 million for the same period last year. Excluding the extra week in last year's fourth quarter, sales decreased 3.3%.

Comparable-store sales for the quarter were down 6.2%.

"The steep decline in business last fall required us to take an exceptional amount of markdowns in the fourth quarter to move seasonal merchandise," noted president and ceo Linda Farthing. "Although very costly, it did allow us to reduce our overall inventory to levels more appropriate for this uncertain retailing climate."

For the fiscal year 2007, the company incurred a net loss of $4.5 million or 11 cents per diluted share, as compared to net income of $37.2 million or 85 cents per diluted share in 2006. For the fiscal year 2007, net sales totaled $1.46 billion, a 2.9% decrease from the $1.50 billion in net sales for the same period last year. Excluding the extra week for last year, sales decreased 1.5%.

Comparable-store sales for the full year decreased 4%.

"Although it was in line with our revised projections, our 2007 performance was deeply disappointing," commented Farthing. "We are committed to improved results in 2008, despite the difficulties in the current economic environment."