Jacksonville, Fla.–Despite a rise in sales, Stein Mart, Inc. reported a lower Q1 profit, reflecting higher advertising and store selling expenses. Comparable store sales increased 2.6%. Adjusted earnings matched analysts’ expectations, while revenues came above view.
Total sales for Q1 were $328.9 million compared to $321.4 million for the first quarter of 2013. Gross profit for the first quarter of 2014 was $104.3 million or 31.7% of sales.
For Q1, net income slightly dipped to $14.08 million or $0.31 per share from $14.69 million or $0.33 per share last year. Adjusted earnings per share were $0.32, while the company posted $0.33 per share in 2013.
“We are pleased with our operating performance thus far this year, which included a solid comp sales increase for the quarter once the weather improved,” said Jay Stein, Chief Executive Officer. “Our planned growth investments in new stores and ecommerce, as well as the timing of our annual advertising spend, caused our earnings to be below last year. We continue to be excited about our growth opportunities as we open more stores and continue to produce solid same store sales results.”