Stein Mart Inc.
) reported total sales of $102.1 million in November 2011, down
5.1% from $107.6 million in November 2010. The company's comparable
store sales (comps) for the month also declined 4.6% versus flat
growth recorded in the year-earlier period.
During the month, the company anniversaried its largest event
which led to a shortfall in comps. Additionally, the company also
reduced the dependence on coupons that in turn hurt its sales.
In November, the categories that performed well were ladies'
accessories and men's furnishings. Ladies' dresses and career
sportswear as well as home decor were the poor performers in the
month. Geographically, November sales were stronger in California
and Texas while sales were weaker in the Carolinas and the
Stein Mart's year-to-date total revenue was down 1.9% year over
year at $934.3 million while same-store sales dropped 1.2% as
opposed to 1.8% the same-period last year. In the third quarter,
the company's total sales decreased 3.5% year over year to $258.5
million due to a 2.9% reduction in comps.
The company, which offers fashion merchandise and service, ended
November with 263 stores compared with 265 stores in the year-ago
period. During the month, the company opened a new store in Denver,
Colorado. Unit economics for the full year include three new
stores, four relocations and five closings.
The Zacks Consensus earnings estimates for the fourth quarter
and fiscal 2011 are pegged at 22 cents and 53 cents, respectively,
representing year-over-year declines of 32.03% and 38.08%. Over the
last 7 days, none of the analysts went for any movement in their
estimates. We remain pessimistic on the comparable store
performance of Stein Mart as the company has been trailing for
Stein Mart, an off-price retailer of apparel for women and men,
accessories, gifts, footwear and home decor, currently retains a
Zacks #4 Rank, which translates into a short-term Sell rating.
However, we are maintaining our long-term Neutral recommendation on
the stock. One of its competitors,
) currently retains a Zacks #3 Rank, which translates into a
short-term Hold rating.
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