Stein Mart reports gross profit jump 27.9% to $104.9mn in Q1
25 May '07
2 min read
Stein Mart Inc announced financial results for its first quarter ended May 5, 2007. As a reminder, the 53rd week in fiscal 2006 created a timing shift in the 4-5-4 calendar for fiscal 2007, creating a one-week difference between Stein Mart's fiscal reporting periods and comparable store sales reporting periods. This timing shift positively impacted total net sales for the first quarter of 2007.
For the 13-week first quarter of 2007, the Company earned $8.1 million or $0.18 per diluted share as compared to net income of $7.6 million or $0.17 per diluted share in 2006. Net sales increased 3.1 percent to $376.1 million from $364.8 million for the 13 weeks ended April 29, 2006. Comparable store sales for the 13 weeks ended May 5, 2007 decreased 2.0 percent from the 13 weeks ended May 6, 2006.
Gross profit increased to $104.9 million or 27.9 percent of sales in the first quarter of 2007 compared to $97.6 million or 26.7 percent of sales in the same period last year.
The gross profit rate increased 120 basis points due to improved markup and decreased markdowns, somewhat offset by increased share-based buying costs.
Selling, general and administrative (SG&A) expenses were $97.4 million or 25.9 percent of sales as compared to $90.5 million or 24.8 percent of sales during the same period last year.
The SG&A rate was higher due to a lack of leverage on negative comparable store sales, and reflected increases in store operating expenses,depreciation, advertising, and share-based compensation.
"Our first quarter performance was severely impaired by the significant shortfall in April sales," said Michael D. Fisher, president and chief executive officer of Stein Mart Inc.
"Following the earlier Easter and record cold weather in early April, we had hoped to see a stronger recovery, but our business is still underperforming our spring plan and we are concerned about the impact of a lower level of consumer spending going forward."
marketing@alchempro.com
