Newspaper article The Florida Times Union

Stein Mart Reports a Flat Fourth Quarter; the Retailer's Challenges Included a Hard-to-Read Fashion Forecast and Slow Sales of Winter Clothing

Newspaper article The Florida Times Union

Stein Mart Reports a Flat Fourth Quarter; the Retailer's Challenges Included a Hard-to-Read Fashion Forecast and Slow Sales of Winter Clothing

Article excerpt

Byline: DIANA MIDDLETON

Stein Mart Inc. executives are soon to unveil several new initiatives for the 2007 fiscal year - not a bad strategy after the roadblocks the retailer saw in 2006.

Stein Mart Inc. reported both its fourth quarter and fiscal year 2006 results Wednesday morning. While fourth quarter results were flat when compared with 2005, total earnings for the fiscal year tanked. Still, company executives, who discussed the retailer's results during a conference call with investors Wednesday morning, say they expect positive sales growth thanks to an earlier Easter and a number of new initiatives designed to boost brand awareness and improve profits.

4Q NET EARNINGS OF $21 MILLION

Stein Mart's 14-week fourth quarter netted $21 million, or 48 cents per diluted share - relatively flat when compared to the same period in 2005, during which the company earned $21.2 million, or 48 cents per diluted share. The extra week for the company's 2006 fourth quarter accounted for $19.7 million in sales and increased earnings per share by approximately 4 cents, the company said in a statement.

Meanwhile, the company's 53-week fiscal 2006 earned $37.1 million, or 85 cents per diluted share, said Stein Mart's statement. That's a steep decline from 2005, during which the retailer earned a net income of $50.9 million or $1.15 per diluted share. "Comparable store sales for the 52 weeks ended January 27, 2007 declined 1.2 percent from the 52 weeks ended January 28, 2006," said the company's statement.

Michael Fisher, Stein Mart's president and chief executive officer, said the company faced a challenging retail environment in 2006 during a conference call with analysts Wednesday morning. The retailer's struggles, according to Fisher, included a difficult-to-interpret fashion forecast, higher costs of labor and insurance, a flubbed installation of price optimization software ProfitLogic, and a slowdown of the housing market, which dampened consumers' enthusiasm for shopping. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.