Stein Mart Q1 Profit Down - Quick Facts

(RTTNews) - Stein Mart Inc. (SMRT) reported that its net income for the first quarter declined to $13.6 million or $0.29 per share from $14.1 million or $0.31 per share in 2014.

First quarter adjusted net income was $14.2 million or $0.31 per share compared to adjusted net income of $14.7 million or $0.32 per share in 2014. Analysts polled by Thomson Reuters expected the company to report earnings of $0.34 per share for the quarter. Analysts' estimates typically exclude special items.

First quarter 2015 includes $0.6 million higher interest expense on its credit facilities which impacted earnings $0.4 million after-tax or $0.01 per share.

The quarterly timing of certain items negatively impacted year-over-year comparisons for the first quarter of 2015, but will have a positive impact in the second through fourth quarters. This primarily resulted in a lower first quarter gross profit rate and somewhat higher selling, general and administrative (SG&A) expenses.

Total sales of $353.5 million for the first quarter of 2015 increased 7.5 percent compared to $328.9 million in 2014. Wall Street expected revenues of $347.96 million for the quarter. Comparable store sales increased 4.8 percent for the first quarter with its ecommerce business contributing 80 basis points to our comparable sales growth. Traffic increased more than two percent during the quarter; slightly higher than our fourth quarter increase.

The Company ended the quarter with 270 stores compared to 263 at the end of the first quarter last year. During the quarter, one new store was opened and one was closed.

It continues to expect its full year 2015 gross profit rate to be consistent with its 2014 rate and that its full year SG&A expenses will be as previously guided.

The company said it now expects to open ten new stores, close three stores and relocate one store in 2015. A new store planned in San Clemente, CA planned for fall 2015 has shifted to the first quarter of 2016. The additional closing is the result of a relocation planned for 2016 that is now closing in 2015 and reopening as a new store in 2017.