Stein Mart Q4 Results Miss View

(RTTNews) - Stein Mart Inc. (SMRT) reported that its net income for the fourth quarter declined to $6.3 million or $0.13 per share from last year's $12.3 million or $0.27 per share. Fourth quarter 2015 results were significantly impacted by higher markdowns. "Disappointing fourth quarter sales and a more promotional holiday selling season drove our results lower than the prior year. Our fourth quarter gross profit rate was lower as we made appropriate valuation decisions on inventories," said Jay Stein, Chief Executive Officer.

Fourth quarter adjusted net income was $8.0 million or $0.17 per share in 2015 compared to adjusted net income of $14.6 million or $0.32 per share in 2014. Analysts polled by Thomson Reuters expected the company to report earnings of $0.21 per share for the quarter. Analysts' estimates typically exclude special items.

Total sales for the fourth quarter of 2015 increased 1.8 percent to $394.1 million, while comparable store sales decreased 1.1 percent. Wall Street expected revenues of $394.34 million.

Gross profit for the fourth quarter of 2015 was $105.8 million or 26.8 percent of sales compared to $113.6 million or 29.4 percent of sales in 2014. The decrease in the gross profit rate is due to higher markdowns from lower than planned sales and an elevated promotional environment during the holiday selling season. Additionally, fall inventories levels were higher after the holiday selling season and required additional markdowns.

The company opened 5 new stores today and currently plan to open at least 7 new stores in October and November for a total plan of at least 12 stores.

Capital expenditures for 2016 are expected to be approximately $43 million, or $33 million net of tenant improvement allowances.