follow us

Hurricanes Can't Stop Stein Mart

Despite losing almost $6 million in sales to a pair of hurricanes that damaged and shut many of its stores, Stein Mart Inc. parlayed strict inventory controls and stronger margins into a $1.4 million third quarter profit, recovering from a year-before loss of $2 million.

Sales increased 1.8 percent, to $336.5 million from $330.4 million, and would have climbed higher but for store closings and business disrupted by Hurricanes Katrina and Wilma. The retailer estimated about $5.7 million in sales was lost due to stores that were closed for at least one day. Held in check by storms, same-store sales edged up 0.4 percent.

Providing a lift to the bottom line, average gross margin widened 1.6 percentage points, to 24.7 percent from 23.1 percent helped by improved mark-up and fewer markdowns, the company said. Merchandise stockpiles were cut 2.9 percent from year-ago levels, to $313.3 million from $322.7 million, yielding a savings of $9.3 million.

“We are pleased to have produced a profit in the third quarter, despite eight weeks of punishing hurricane activity that preoccupied communities and customers,” said Michael Fisher, CEO.

Storms had a major impact on business, the retailer said, closing stores in at least seven states over the course of eight weeks. “Several areas were threatened and/or struck more than once, and while only a few Stein Mart stores were structurally damaged, issues with power, infrastructure and evacuated associates curtailed business significantly,” the retailer said.

Stein Mart Inc.

Qtr. 10/29 (x000) 2005 2004 % change
(loss)
a-Third quarter results include $3.7 million in miscellaneous income, up 13.8 percent from $3.3 million during the same period a year ago; and an income-tax benefit of $856,000, compared with a year-before tax payment of $1.2 million.
b-Nine month results include $11.3 million in miscellaneous income, compared with $10.5 million last year; and an income tax benefit of $18.3 million, compared with a year-before tax benefit of $9.4 million. The prior-year nine months included an after-tax $145,000 loss from discontinued operations.
Sales $336,537 $330,432 1.8
Oper. income (EBIT) (2,006) (6,680) --
Net income 1,396a (2,003)a --
Per share (diluted) 0.03 (0.05) --
Average gross margin 24.7% 23.1% --
SG&A expenses 25.3% 25.1% --
Nine months
Sales 1,054,256 1,014,664 3.9
Oper. income (EBIT) 35,470 14,044 152.6
Net income 29,829b 15,136b 97.1
Per share (diluted) 0.67 0.36 86.1
Average gross margin 27.6% 25.5% --
SG&A expenses 24.2% 24.1% --


Featured Video

  • Online Moves From Afterthought To Main Thought For Textiles Suppliers

    Camera Icon More Videos

Other Home Furnishings Sites

Casual Living
Gifts and Decorative Accessories
Home Accents Today
Kids Today
Furniture Today