US: Stein Mart Q1 profit doubles on cost cuts
Off-price retailer Stein Mart Inc has more than doubled its first quarter profit after tight inventory control, better margins, and cost cuts helped offset lower sales.
The Jacksonville, Florida based firm earned $16.1m or $0.38 per share in the three months to 2 May, up 130% from last year's $7.0m or $0.17 per share.
Net sales fell 9.2% to $319.6m from $352.1m, and comparable store sales dropped 8.0%.
Gross profit increased to 30.3% of net sales from 27.8% a year ago, helped by increased mark-up and lower markdowns.
Selling, general and administrative (SG&A) expenses fell to $79.9m from $91.5m after the company axed nearly 200 jobs earlier this year.
"Despite a very difficult sales environment, first quarter earnings improved due to tightly controlled inventories that enhanced merchandise margins, and significant expense reductions," said David H Stovall Jr, president and CEO.
"These initiatives produced a positive cash flow of $32m and allowed us to end the period debt free."
Stein Mart operates 275 stores selling fashion apparel for women and men, as well as accessories, gifts, linens and shoes.
Help test our new apparel sourcing tool.
This week's third quarter figures suggest that US fashion retailers appear to have steadied the ship - at least on the bottom line....
Apparel retail group Gap Inc is aiming to build market share this holiday season after posting a 25% gain in third quarter net profit to US$307m....
The Wet Seal, a US retailer to young women, saw third quarter net income fall 34%, with same-store sales at its flagship Wet Seal chain slumping 7.8%....
Retailer Hibbett Sports increased its full-year earnings guidance after posting a third quarter profit of US$8.8m, up 14.7% on last year....
Retailer Foot Locker slipped to a third quarter loss of US$6.1m, hurt by $22m of impairment charges linked to write-downs of the company's US operations....
Apparel retailer Dress Barn raised its full-year earnings forecast after posting a 10.2% increase in first quarter profit to US$21.7m....
US general merchandise retailer Sears Holdings Corporation has posted a net loss for the third quarter, as sales were hit by fewer Kmart and Sears full-line stores and foreign currency effects....
US footwear retailer Shoe Carnival posted its second best ever quarterly earnings thanks to accelerated Q3 sales....
- Rana Plaza four years on – Timeline of change
- Using worker surveys to drive supply chain change
- Trump and Brexit get a dose of pragmatism
- No US rush to Myanmar despite end to sanctions
- Where does VF supply chain sit in growth strategy?
- Amazon wins on-demand apparel manufacturing patent
- Driving ban intensifies Myanmar logistics hurdles
- Inditex, Adidas and Patagonia top ethical report
- Calls for supply chain transparency standard
- Trump bolsters "buy American" with executive order
- Global market review of denim and jeanswear – forecasts to 2022
- When Things Go Wrong - A Practical Guide to Managing Common Problems in Apparel Sourcing
- Myanmar - ISA Country Report
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- Clothing Market in the Top 5 American Countries to 2021 - Market Size, Development, and Forecasts