Stein Mart, Inc. (SMRT) has reported a 3.63 percent fall in profit for the quarter ended May 02, 2015. The company has earned $13.56 million, or $0.29 a share in the quarter, compared with $14.08 million, or $0.31 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $14.20 million, or $0.31 a share compared with $14.68 million or $0.32 a share, a year ago.
Revenue during the quarter grew 7.50 percent to $353.52 million from $328.85 million in the previous year period. Gross margin for the quarter contracted 107 basis points over the previous year period to 30.66 percent. Total expenses were 93.56 percent of quarterly revenues, up from 92.98 percent for the same period last year. That has resulted in a contraction of 59 basis points in operating margin to 6.44 percent.
Operating income for the quarter was $22.76 million, compared with $23.10 million in the previous year period.
However, the adjusted operating income for the quarter stood at $23.78 million compared to $24.07 million in the prior year period. At the same time, adjusted operating margin contracted 59 basis points in the quarter to 6.73 percent from 7.32 percent in the last year period.
"We are extremely pleased with our solid comparable store sales increase for the quarter and the performance of our new stores," said Jay Stein, chief executive officer. "Our inventories are in great shape. As planned, our gross profit rate will improve as the year proceeds and our expenses will continue to leverage against our higher sales. This should be more evident beginning with our second quarter results."
Operating cash flow remains almost stable
Stein Mart, Inc. has generated cash of $34.53 million from operating activities during the quarter, down 0.88 percent or $ 0.30 million, when compared with the last year period.
The company has spent $7.08 million cash to meet investing activities during the quarter as against cash outgo of $9.24 million in the last year period.
The company has spent $75.57 million cash to carry out financing activities during the quarter as against cash outgo of $4.14 million in the last year period. It has made net debt repayment of $152.08 million. It has spent net of $2.55 million on repurchase of common stocks.
Cash and cash equivalents stood at $17.19 million as on May 02, 2015, down 80.53 percent or $71.12 million from $88.31 million on May 03, 2014.
Working capital drops significantly
Stein Mart, Inc. has witnessed a decline in the working capital over the last year. It stood at $110.33 million as at May 02, 2015, down 34.46 percent or $58.01 million from $168.35 million on May 03, 2014. Current ratio was at 1.46 as on May 02, 2015, down from 1.70 on May 03, 2014.
Days inventory outstanding has decreased to 56 days for the quarter compared with 113 days for the previous year period. At the same time, days payable outstanding went down to 30 days for the quarter from 63 for the same period last year.
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