Stein Mart Inc. (SMRT) saw its loss widen to $11.01 million, or $0.24 a share for the quarter ended Oct. 29, 2016. In the previous year period, the company reported a loss of $0.20 million, or $0.01 a share.
Revenue during the quarter went down marginally by 0.38 percent to $299.53 million from $300.66 million in the previous year period. Gross margin for the quarter contracted 305 basis points over the previous year period to 24.28 percent. Operating margin for the quarter stood at negative 5.45 percent as compared to a positive 0.23 percent for the previous year period.
Operating loss for the quarter was $16.32 million, compared with an operating income of $0.70 million in the previous year period.
"We introduced new marketing and promotional changes, as well as new merchandising strategies, during the quarter which were not embraced by our customer. The promotional changes were particularly impactful on our ability to clear spring merchandise on a timely and profitable basis during the quarter. As a result, we took significant markdowns to liquidate spring inventories. The lower gross profit rate also reflects higher occupancy costs, mostly from new stores, which negatively leverage on lower comparable store sales," said Hunt Hawkins, Interim Chief Executive Officer."
Debt comes down
Stein Mart, Inc has recorded a decline in total debt over the last one year. It stood at $179.68 million as on Oct. 29, 2016, down 6.33 percent or $12.15 million from $191.83 million on Oct. 31, 2015. Total debt was 28.50 percent of total assets as on Oct. 29, 2016, compared with 31.19 percent on Oct. 31, 2015. Debt to equity ratio was at 2.31 as on Oct. 29, 2016, down from 2.65 as on Oct. 31, 2015.
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