Stein Mart, Inc. Reports 3Q and Year-to-Date 2007 Financial Results.

JACKSONVILLE, Fla., Nov. 29 /PRNewswire-FirstCall/ -- Stein Mart, Inc. today announced financial results for its third quarter and first nine months ended November 3, 2007.

Note: the 53rd week in fiscal 2006 created a timing shift in the 4-5-4 calendar for fiscal 2007, resulting in 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 third quarter of 2007 and for the first nine months of the year.

Third Quarter of 2007

For the 13-week third quarter of 2007, the Company incurred a net loss of $2.7 million or $(0.06) per diluted share as compared to net income of $237,000 or $0.01 per diluted share in 2006. Net sales decreased 1.7 percent to $333.3 million for the 13 weeks ended November 3, 2007 from $339.2 million for the 13 weeks ended October 28, 2006. Comparable store sales for the 13 weeks ended November 3, 2007 decreased 6.3 percent from the 13 weeks ended November 4, 2006.

Gross profit declined to $86.2 million or 25.9 percent of sales in the third quarter of 2007 compared to $89.3 million or 26.3 percent of sales in the same period last year. The gross profit rate decreased primarily due to a lack of leverage on lower sales, as increased mark-up was offset by higher markdowns.

Selling, general and administrative (SG&A) expenses were $97.2 million or 29.2 percent of sales as compared to $92.6 million or 27.3 percent of sales during the same period last year. The SG&A rate was higher due to a lack of leverage on lower sales, and reflected increases in advertising and costs related to the transition of the president/CEO position.

First Nine Months of 2007

For the first nine months of 2007, the Company earned $7.6 million or $0.18 per diluted share as compared to net income of $16.1 million or $0.37 per diluted share in 2006. Net sales were $1.04 billion for the 39-week period ending November 3, 2007, which were flat compared to the same period last year. Comparable store sales for the 39 weeks ended November 3, 2007 decreased 3.1 percent from the 39 weeks ended November 4, 2006.

Gross profit declined to $277.3 million or 26.7 percent of sales in the first nine months of 2007 compared to $280.9 million or 27.0 percent of sales in the same period last year. Higher mark-up was offset by increased markdowns, and the gross profit rate decreased…