The publicly-traded retailer now has until August 1 to comply with regulations or face delisting. In March, NASDAQ Listings Qualifications Panel had warned Stein Mart that its listing was under consideration for removal due to noncompliance problems. Last September Stein Mart was put on notice for not filing its second quarter earnings in a timely manner, and again in December, for not filing its third quarter earnings in a timely manner.
Stock market regulators told the company it would be delisted if the reports weren’t brought into compliance.
Stein Mart had replied that improperly handled records relating to a pending changeover in its electronic inventory system caused it to miss recording permanent markdowns. And it missed the March 5 deadline for the delinquent reports because it is still in the process of restating previously issued financial statements, testing and auditing prior results and evaluating control implications related to the restatement, according to filings with the Securities and Exchange Commission (SEC).
Although NASDAQ regulators agreed to give Stein Mart until August 1 to come into compliance, the company must complete historical financial statements and filings with the SEC by the end of the extension.
“The Company believes that it will be current with its SEC reports earlier than the August 1st date,” Stein Mart said Wednesday.