Stein Mart, Inc. Provides First Quarter 2020 Sales and Preliminary Operating Results
- First quarter net sales decrease 57%
- Reopened 90 percent of stores to date with reduced hours
- Actions taken in response to COVID-19 to preserve liquidity
JACKSONVILLE, Fla., June 03, 2020 (GLOBE NEWSWIRE) -- Stein Mart, Inc. (Nasdaq: SMRT) today provided sales and a range of operating results for the first quarter ended May 2, 2020. The Company plans to release its complete first quarter financial results no later than June 30.
First Quarter 2020
|First Quarter 2019|
|Operating (Loss) Income (1)||$(64.0)||$(68.0)||$6.5|
(1) Operating Loss for the first quarter of 2020 excludes expected pre-tax non-cash long-lived asset impairment charges. The Company is in the process of completing its impairment assessment for long-lived assets.
Financial Commentary and Business Update
The decrease in net sales for the first quarter of 2020 compared to the prior year reflects the temporary closure of all stores on March 19 due to the COVID-19 pandemic. Omni sales for the first quarter increased 17 percent over last year. In April, omni sales were 47 percent higher than last year driven by fulfillment from closed stores where allowed.
Beginning April 23, the Company began the staggered reopening of stores with reduced hours. To date, the Company has reopened 255 of its 281 stores in accordance with local government guidelines. Traffic in stores has steadily increased each week since reopening and omni sales have continued to be strong, even as more stores opened. Sales continued to recover in May, but remained well below last year.
“We are diligently working to recover from the loss of revenue while stores were closed and significantly lower year-over-year sales since reopening and are taking actions to preserve liquidity and improve our financial position,” said Hunt Hawkins, Chief Executive Officer. “I am extremely proud of our teams for rising to the challenge of managing our business in this unprecedented economic and retail environment, which is expected to continue for some time. Through their extraordinary resilience and resourcefulness, we have accomplished much. Still, there is more work to be done.”