Stein Mart Q3 Results Beat View

(RTTNews) - Apparel retailer Stein Mart, Inc. (SMRT) on Thursday reported a loss for the third quarter, as higher sales were more than offset by higher expenses and one-time costs. However, both net sales and adjusted earnings per share for the quarter beat analysts' estimates.

Jay Stein, Chief Executive Officer of Stein Mart said, "We are pleased with our third quarter 3.1 percent comparable sales increase, improved adjusted earnings and the sales boost from our 2014 new and relocated stores for the quarter. This was a great way to start our fall season, as we turn our attention to the very important fourth quarter."

The Jacksonville, Florida-based company's net loss for the third quarter was $1.21 million or $0.03 per share, compared to net income of $28 thousand or breakeven per share in the year-ago period.

Adjusted net income for the quarter was $0.95 million or $0.02 per share, compared to adjusted net loss of $0.27 million or $0.01 per share in the year-ago period. On average, five analysts polled by Thomson Reuters expected the company to report earnings of $0.01 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter rose 5 percent to $303.67 million from $290.45 million in the year-ago period. Analysts had a consensus revenue estimate of $301.98 million for the quarter.

Comparable store sales for the quarter increased 3.1 percent.

Cost of merchandise for the quarter increased 3 percent from the year-ago period to $219.11 million, while selling, general and administrative expenses rose 11 percent to $86.28 million.

At the end of the third quarter, Stein Mart operated 268 stores, up from 264 stores at the end of the year-ago period. The company expects to open at least ten new stores, relocate two and close two stores in 2015.

Looking ahead to fiscal 2014, Stein Mart said it continues to anticipate new stores will increase sales by an estimated 2.5 percent above its comparable store increases for the second half. The company now expects full-year gross profit rate to be slightly higher than the 29.1 percent reported in 2013.

SMRT closed Wednesday's trading at $13.35. In Thursday's pre-market trades, the stock is up $0.29 or 2.17 percent to $13.64.