Stein Mart Sees Big Bump In Profits Preluding E-commerce Site's Launch
By Sam Lewis
Web store will be company’s most important move this year
Jacksonville, FL-based Stein Mart posted very positive numbers during the second quarter of 2013. These numbers are a good harbinger for the department store chain as it prepares to launch its e-commerce presence this autumn.
Stein Mart’s total sales for the time period, ending August 3, increased to $80.3 million, up from $73.8 million in the second quarter of 2012. Sales of the second quarter led to net income of $3.4 million, or 8 cents per share, compared to $2.3 million, or 5 cents per share, in 2012. Same store sales jumped up 6.4 percent for Stein Mart during 2013’s second quarter. “Our second quarter same store sales increase of 6.4 percent was driven by our great merchandise, brands, and pricing,” said Jay Stein, CEO. Stein Mart ended the second quarter with 262 stores, and positive figures for the quarter have resulted in the planning of four new locations and the relocation of two stores. “As we begin our third quarter, we now believe that our gross margin rate will continue to be better than last year and that our expense structure will allow much of our higher gross margin dollars to drop to our bottom line,” said Stein.
The second quarter’s positivity also brings a new endeavor for Stein Mart in the third quarter, and beyond. The retailer will be launching its e-commerce presence this fall. The web store, which has been in the works for about two years, is set to make its debut in the next few weeks. The site will include a large assortment of Stein Mart’s in-store merchandise, as well as items that will be available exclusively online. “Launching our new e-commerce business is the most important thing we're going to do this year,” said Stein. Though the company doesn’t believe the launch of the site will affect sales in the next year, it is still a great move on Stein Mart’s behalf to allow shoppers to connect with the store across as many channels as possible.