Stein Mart’s comps slipped in the second quarter, as the retailer prepares new merchandising and marketing initiatives and plans new store openings this fall.
In the second quarter ended July 30, Stein Mart recorded net income of $3 million, or six cents per diluted share, compared with net income of $4.1 million, or nine cents per diluted share, in the 2015 period.
An analyst average estimate published by MarketBeat called for second quarter earnings per diluted share of seven cents.
Comparable store sales slipped 1.4% in the quarter year over year. Total sales increased 2.6% to $319.8 million from the prior-year period. Operating income was $5.6 million versus $7.4 million in the 2015 quarter.
“Our sales trends improved in the second quarter from the first quarter,” said Dawn Robertson, Stein Mart CEO. “Though same store sales were down, the improved trend, along with our new stores, increased our total sales for the quarter. We managed our spring markdowns and seasonal inventories well and continued our focus on controlling expenses in a challenging apparel sales environment.”
She added, “Beginning in the third quarter, we are introducing some of our exciting new merchandising and marketing initiatives. For our existing loyal customers, these include rolling out our revitalized merchandise assortments, Fabulous Finds and the new ‘A List’ program. In addition, we are aggressively growing our activewear business in all stores and presenting a modern assortment in 60 stores to attract and grow a new customer demographic. We are excited about all of these new initiatives, which we believe will positively impact sales.”
Stein Mart operates 283 stores. The company also plans to open eight new stores this fall.
