Stein Mart reports profit, but sales drop

JACKSONVILLE, Fla. Stein Mart reported that net earnings for the second quarter were $1.5 million, or 4 cents per share, as compared with a net loss of $8 million or 19 cents per share in 2008. Net sales decreased 7.7% to $287.5 million for the 13 weeks ended Aug. 1 from $311.6 million for the 13 weeks ended Aug. 2. Comparable-store sales for the 13 weeks ended Aug. 1 decreased 4.5% from the same period a year ago.

For the first half of 2009, the company's net earnings were $17.6 million or 41 cents per share as compared with a net loss of $1 million, or 2 cents per share for the same 2008 period. Net sales decreased 8.5% to $607.1 million for the 26 weeks ended Aug. 1 from $663.8 million for the same 26 weeks in 2008. Comparable-store sales for the first six months of the year decreased 6.3% from the 2008 period to the 2009 period.

David Stovall, Jr., president and chief executive officer, commented, "We must continue to make progress against a protracted negative sales trend with limited visibility for the foreseeable future. Although the customer is still very cautious, response to our updated merchandise offering and new marketing strategy is encouraging. We plan to build on these efforts this fall, while maintaining rigorous control over expenses and inventory levels."