Stein Mart Q2 Profit Down - Quick Facts

(RTTNews) - Apparel retailer Stein Mart Inc. (SMRT) reported that its net income for the second quarter ended August 2, 2014 was $1.74 million or $0.04 per share down from $3.41 million or $0.08 per share in 2013.

Second quarter 2014 results included $2.1 million higher healthcare costs and $0.6 million higher pre-opening costs compared to last year's second quarter. These increases total $1.6 million after tax or $0.04 per diluted share. The higher healthcare costs were due to unusually unfavorable claims experience this year compared to favorable claims experience in last year's second quarter.

Second quarter adjusted net income was $2.8 million or $0.06 per share compared to adjusted net income of $4.5 million or $0.10 per share in 2013. Analysts polled by Thomson Reuters expected the company to report earnings of $0.08 per share for the quarter. Analysts' estimates typically exclude special items.

Total sales for the second quarter increased 2.5 percent to $298.16 million from last year's $290.97 million, while comparable store sales increased 1.3 percent. Wall Street expected revenues of $300.80 million for the quarter.

The company expects certain factors to influence its sales and earnings for 2014. New stores will increase sales an estimated 1.5 percent above its comparable store increases for the full year and 2.5 percent in the second half. It continues to expect its full year gross profit rate to be slightly less than the 29.1 percent reported in 2013. It continues to expect the full year effective tax rate to be approximately 39.0 percent.