JACKSONVILLE, Fla.–Stein Mart posted net income of $1.5 million in the second quarter, as opposed to a $8 million net loss in last year’s second quarter.
The retailer accomplished this in spite of a 7.7 percent decline in its net sales, which totaled $287.5 million in the quarter. Stein Mart’s bottom line was bolstered by selling, general and administrative expense reductions of 19.8 percent, and from higher gross margin as a result of increased markups and reduced markdowns on store merchandise.
In a company statement, David Stovall, president and chief executive officer, said “By keeping inventory and expenses tightly controlled, we were able to improve margins and profitability for both the quarter and the first six months, despite negative comparable-store sales trends.” Same-store sales for Stein Mart fell 4.5 percent in the quarter.
Stein Mart opened no new stores and closed five stores in the second quarter. For the first half of 2009, the company opened one new store and closed seven stores.