Stein Mart CEO Jay Stein is focused on the company’s growth strategy, which includes plans to continue expanding the company’s e-commerce business, following second-quarter results.
Total sales for the quarter increased 2.5% to $298.2, while comparable store sales increased 1.3%. Gross profit for the quarter was $84.2 million, or 28.3% of sales.
"Despite a challenging first half of the year with weather impacting sales, we have a number of important initiatives in place," said Stein. "Key among these is our growth focus, as we open more new and relocated stores this fall and continue to build our e-commerce business. These and our other strategies play a very important role in our long-term business development."
The company’s results included higher healthcare costs, $2.1 million, and higher pre-opening costs related to new and relocated stores, $0.6 million, compared to last year's second quarter. The higher healthcare costs, according to the company, were due to “unusually unfavorable claims experience this year compared to favorable claims experience in last year's second quarter.”
Stein Mart operated 265 stores at the end of the quarter this year compared to 262 at the end of the second quarter last year. The company anticipates opening six new stores, relocating four and closing one during the second half of the year.