Stein Mart gains as Q3 loss forecast narrows
Shares of Stein Mart Inc. (Nasdaq: SMRT) are rising following news before the start of trading that the women’s fashion retailer narrowed its third-quarter loss forecast.
The Jacksonville, Fla.-based company announced that it expects a net loss of between $0.06 per share and $0.08 per share, compared with a previous forecast calling for a net loss of between $0.15 per share and $0.18 per share. Four analysts polled by Thomson Financial were calling for a loss of $0.17 per share.
“Although we had a positive response to an additional promotional event
mid-month, our business remains difficult,” said president and CEO Linda Farthing in a statement.
Stein Mart reported that same-store sales for the month of October fell 3.8%, resulting in a fall of 6.3% during the third quarter. However, expenses declined, primarily due to the delayed opening of some new stores.
The company announced that it opened eight new stores in the quarter and closed two. As of Nov. 3, Stein Mart had 276 stores, compared with 265 a year earlier. The company said it expects to close the year with 280 stores, up from 268 at the end of 2006.
At 3:40 p.m. ET, shares of Stein Mart (SMRT) had added $0.82, or 15%, to $6.42. That’s far from the 52-week high of $18, which was touched on Nov. 15, 2006. The 52-week low of $5.54 was set on Nov. 7.
