For the quarter ended August 2, net income dropped to $1.7 million from $3.4 million a year earlier. Net income was $1.74 million, or 4 cents a share, down from $3.41 million or 8 cents a share in the year-ago period.
‘Important Initiatives in Place’
Included in the results are a $2.1 million higher healthcare cost and $.6 million higher pre-opening costs compared to the year-ago quarter. These increases totaled $1.6 million after tax or 4 cents a share. They were due to unusually unfavorable claims experience this year compared to the prior-year period.
Adjusted net income for the quarter was $2.78 million or 6 cents a share, compared to $4.52 million or 10 cents a share a year ago. The adjusted figure missed analysts’ average estimate for 8 cents a share.
Total sales were up 2.5% to $298.2 million, while comparable store sales increased 1.3%.
“Despite a challenging first half of the year with weather impacting sales, we have a number of important initiatives in place,” said CEO Jay Stein. “Key among these is our growth focus, as we open more new and relocated stores this fall and continue to build our e-commerce business. These and our other strategies play a very important role in our long-term business development.”
Stein Mart is estimating new stores to increase sales an estimated 1.5% above our comparable store increases for the full year and 2.5% in the second half.