Stein Mart, Inc. (SMRT) swung to a net loss for the quarter ended Jan. 28, 2017. The company has made a net loss of $4.91 million, or $ 0.11 a share in the quarter, against a net profit of $6.25 million, or $0.13 a share in the last year period. Revenue during the quarter went down marginally by 2.19 percent to $385.52 million from $394.13 million in the previous year period. Gross margin for the quarter contracted 403 basis points over the previous year period to 22.81 percent. Operating margin for the quarter stood at negative 2.11 percent as compared to a positive 2.72 percent for the previous year period.
Operating loss for the quarter was $8.13 million, compared with an operating income of $10.71 million in the previous year period.
"Our fourth quarter results were disappointing as we continued to work through higher than desired inventory levels and the impact of changes to marketing, merchandising and promotions implemented during the third quarter. We were aggressive with our promotions and markdowns to clear fall merchandise which severely impacted the quarter’s gross profit rate and earnings," said Hunt Hawkins, chief executive officer.
Operating cash flow improves significantlyStein Mart, Inc. has generated cash of $60.58 million from operating activities during the year, up 57.72 percent or $22.17 million, when compared with the last year. The company has spent $39.20 million cash to meet investing activities during the year as against cash outgo of $44.36 million in the last year.
The company has spent $22.61 million cash to carry out financing activities during the year as against cash outgo of $47.53 million in the last year period.
Cash and cash equivalents stood at $10.60 million as on Jan. 28, 2017, down 10.36 percent or $1.23 million from $11.83 million on Jan. 30, 2016.
Working capital decreases marginally
Stein Mart, Inc. has witnessed a decline in the working capital over the last year. It stood at $134.77 million as at Jan. 28, 2017, down 1.54 percent or $2.11 million from $136.88 million on Jan. 30, 2016. Current ratio was at 1.68 as on Jan. 28, 2017, down from 1.73 on Jan. 30, 2016.
Debt comes down marginally
Stein Mart, Inc. has recorded a decline in total debt over the last one year. It stood at $181.79 million as on Jan. 28, 2017, down 4.40 percent or $8.36 million from $190.15 million on Jan. 30, 2016. Total debt was 34.44 percent of total assets as on Jan. 28, 2017, compared with 36.83 percent on Jan. 30, 2016. Debt to equity ratio was at 2.59 as on Jan. 28, 2017, up from 2.49 as on Jan. 30, 2016. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
