More Bad News for Stein Mart, Inc. (NASDAQ:SMRT)

Stein Mart, Inc. (NASDAQ:SMRT)

Stein Mart, Inc. (NASDAQ:SMRT)

Stein Mart, Inc. (NASDAQ:SMRT) shares are down over 5% in early trading but have rebounded from the day’s lows after the company released their Q2 financial results. Trading volume is moderately heavy. Importantly, there is a large short-selling position which accounts for over 25% of the stock’s float.

Stein Mart, Inc. (NASDAQ:SMRT)
One month stock price chart for SMRT

The drop in shares of Stein Mart, Inc. (NASDAQ:SMRT) was motivated by a reported decrease in total sales of 2.7% while comparable store sales decreased 5.0 %. Those sales resulted in a loss of (-$0.28) per diluted share of $0.28 compared to diluted earnings per share of $0.06 in 2016. Average store inventories were posted at 15 percent lower than at the same time last year.

Headquartered in Jacksonville, Florida, Stein Mart, Inc. (NASDAQ:SMRT) is a national clothing and household product retailer. Stein Mart offer an experience that is more upscale than other discount retailers, with a focus on ease-of-shopping, service and presentation of merchandise by category, brand, style and size. Stein Mart’s target customer is both style conscious and value seeking with above-average household income. Stein Mart operates nearly 300 stores in 31 states.

Stein Mart, Inc. (NASDAQ:SMRT) was trading north of $12 in 2015 but the shares have been in freefall since late 2016. YTD SMRT stock is down over 77% and down over 85% for the year. Shares are receiving support at the $1 level. Sales have marginally improved over the years but have been flat the last two years at $1.36 billion. Meanwhile there was a major drop in earnings per share. In 2015 EPS was $0.60, then for 2016 it was $0.52. Those figures were followed by an EPS of just $0.01 for 2017.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

Author: Marcus Anderson

Marc has a degree in economics and a MSc. in Finance. Marc worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

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