Stein Mart Slips To Loss In Q4; Plan To Open 11 New Stores

(RTTNews) - Stein Mart Inc. (SMRT) reported that its net loss for the fourth quarter was $4.9 million or $0.11 per share compared to net income of $6.3 million or $0.13 per share in 2015.

"Our fourth quarter results were disappointing as we continued to work through higher than desired inventory levels and the impact of changes to marketing, merchandising and promotions implemented during the third quarter. We were aggressive with our promotions and markdowns to clear fall merchandise which severely impacted the quarter's gross profit rate and earnings," said Hunt Hawkins, Chief Executive Officer.

Total sales for the fourth quarter of 2016 decreased 2.2 percent to $385.5 million, while comparable store sales decreased 5.5 percent.

Analysts polled by Thomson Reuters expected the company to report a loss of $0.05 per share and revenues of $387.32 million. Analysts' estimates typically exclude special items.

The company expects the certain factors to influence business in 2017. It currently plan to open 11 new stores with five opening in March and six in September and October. It also plan to close five stores and relocate one.

Net new stores should increase sales at least four percent above our comparable store sales increases for the year.

Capital expenditures for 2017 are expected to be approximately $32 million, or $29 million net of tenant improvement allowances.