Stein Mart Profit Rises, But Sales Misses Estimates; Stock Down - Update

(RTTNews) - Apparel retailer Stein Mart Inc. (SMRT), Thursday reported a higher second-quarter profit as a mix of merchandise, brands and pricing lifted its same-store sales. While quarterly earnings were in line with Wall Street estimates, sales fell short of expectations. Shares of Stein Mart are down over 4 percent on the Nasdaq.

The company indicated entering the Fall season amid expectations of growth in both sales and margins.

Jacksonville, Florida-based Stein Mart posted quarterly net income of $3.4 million or $0.08 per share, compared with net income of $2.3 million or $0.05 per share last year.

On average, four analysts polled by Thomson Reuters expected earnings of $0.08 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter were up about 4 percent at $291 million, compared with $280 million a year ago. Analysts expected revenues of $295.53 million for the quarter.

On a same-store basis, sales were up 6.4 percent for the quarter.

Gross margin for the quarter expanded to 27.6 percent from 26.3 percent in the prior year, due partly to lower markdowns. The company is in the process of streamlining its expenses.

For 2013, Stein Mart expects capital expenditures of about $34 million.

At the end of the quarter, the company operated 262 stores.

Stein Mark stock is trading at $12.79, down $0.59 or 4.41%, on a volume of 139 thousand shares on the Nasdaq.