• Q2 sales down 4%
  • Net income up to $11.3m, from $1.5m last year
  • "Expense and inventory management efforts have been key drivers"

US retailer Stein Mart bolstered its second quarter profits thanks to a gain from unused gift and merchandise return cards, which offset lower sales.

Included in the company's income was a $9.7m pretax cumulative breakage gain offset by a $1.2m pretax charge associated with changing our physical inventory process, the retailer said.

"Our expense and inventory management efforts have been key drivers of our operating results this year and have established the foundation for improved results," said David Stovall, Jr, president and chief executive officer of Stein Mart. "We are pleased that operating efficiencies allowed us to deliver solid financial results as we reinstated associate compensation and other expenses that were temporarily reduced last year and are important to our long-term performance."

Click here to view the company's full financial statement.