Stein Mart, Inc. (SMRT) Stock Continues Its Post-Earnings Climb

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Stein Mart, Inc. (NASDAQ:SMRT) shares were skyrocketing Friday following the company’s impressive quarterly earnings report Thursday.

Stein Mart, Inc. (SMRT)The discount department store report fiscal 2017 fourth-quarter earnings at a net loss of $400,000, or a penny per diluted share, narrowing its year-ago net loss of $4.9 million, or 11 cents per share. Operating income for the quarter was $4.1 million, topping its operating loss of $8.1 million from the year-ago quarter.

When excluding pre-tax impairment charges, Stein Mart raked in adjusted operating income of $7.3 million, a $14.3 million gain from the adjusted operating loss of $7 million in 2016. Comparable store sales were down 5.4% for the quarter, while total sales fell 0.2% to $384.9 million.

CEO Hunt Hawkins noted that 2017 was a transitional but positive year as it saw improved inventory productivity through reduced inventory, flow changes and better markdown practices. Stein Mart also launched a new advertising campaign, reduced expenses and cut capital spending, while also expanding its eCommerce business by adding ship-from-store fulfillment.

“These changes allowed us to achieve meaningful fourth quarter adjusted operating income that grew $14.3 million from last year driven by gross profit expansion and even greater growth in our merchandise margins,” Hawkins added.

Stein Mart president Mary Ann Morin added that the company’s average store inventories were down 10%, while its e-commerce business was up 80% year-over-year, comprising 5% of its total sales. By the end of the year, the company had 50 stores with ship-to-store capabilities, and this figure will rise by 60 more stores by the end of the first quarter.

SMRT stock gained nearly 23.3% on Friday.


Article printed from InvestorPlace Media, https://investorplace.com/2018/03/stein-mart-inc-smrt/.

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