Stein Mart CEO Resigns, Names Interim; Sees Charge, Weak Comps, Margin In Q3

(RTTNews) - Stein Mart Inc. (SMRT), a retailer of fashion, accessories and home décor, announced Thursday that Dawn Robertson has resigned as Chief Executive Officer and as a director, effective September 27. She has also performed the duties of the chief merchandising officer. The company appointed Hunt Hawkins, current President and Chief Operating Officer, as Interim CEO.

The company said it will initiate a search for a new chief merchandising officer.

Hawkins, aged 57, started his career with Stein Mart as Senior Vice President, Human Resources and was promoted to Executive Vice President of Operations in 2006. He was Executive Vice President, Chief Administrative Officer in 2007, Executive Vice President, Chief Operating Officer in 2011 and President and Chief Operating Officer in 2014.

"Some of the sales initiatives that have been developed under Dawn's leadership are important for our future and we will continue to cultivate them to drive sales in this challenging retail environment," said Jay Stein, Chairman of the Board.

Regarding its trading, the company said that the third quarter will include an approximate $1.6 million charge in connection with Robertson's departure.

Comparable store sales for the third quarter through September 27 have decreased approximately 4 percent. Sales results have improved somewhat in September after a challenging start and several missteps in August.

With lower than anticipated sales, the third-quarter gross profit rate could be approximately 150 basis points lower than last year due to higher markdowns and higher occupancy costs, mostly from new stores.

Financial results for the third quarter will be reported on November 17.