Stein Mart, Inc. (SMRT) has reported 72.20 percent plunge in profit for the quarter ended Apr. 29, 2017. The company has earned $3.70 million, or $0.08 a share in the quarter, compared with $13.31 million, or $0.29 a share for the same period last year.
Revenue during the quarter dropped 5.17 percent to $337.34 million from $355.71 million in the previous year period. Gross margin for the quarter contracted 229 basis points over the previous year period to 28.33 percent. Total expenses were 97.02 percent of quarterly revenues, up from 93.70 percent for the same period last year. That has resulted in a contraction of 332 basis points in operating margin to 2.98 percent.
Operating income for the quarter was $10.06 million, compared with $22.42 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $19.33 million compared with $32.63 million in the prior year period. At the same time, adjusted EBITDA margin contracted 344 basis points in the quarter to 5.73 percent from 9.17 percent in the last year period.
"We continue to experience softer than planned store traffic and sales. As a result, markdowns were significantly higher for the quarter despite our focus on inventory management. Given the uncertain retail environment, we are being more conservative planning fall, keeping a higher percentage of our buying in reserve to opportunistically take advantage of any sales upside. We expect to see additional inventory reductions as the year progresses," said Hunt Hawkins, chief executive officer.
Operating cash flow drops significantly
Stein Mart, Inc. has generated cash of $40.18 million from operating activities during the quarter, down 33.33 percent or $ 20.08 million, when compared with the last year period.
The company has spent $7.18 million cash to meet investing activities during the quarter as against cash outgo of $11.27 million in the last year period.
The company has spent $28.05 million cash to carry out financing activities during the quarter as against cash outgo of $44.51 million in the last year period.
Cash and cash equivalents stood at $15.55 million as on Apr. 29, 2017, down 4.68 percent or $0.76 million from $16.32 million on Apr. 30, 2016.
Debt moves up
Stein Mart, Inc. has witnessed an increase in total debt over the last one year. It stood at $157.45 million as on Apr. 29, 2017, up 5.70 percent or $8.49 million from $148.96 million on Apr. 30, 2016.
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