A slow start to the second quarter impacted Stein Mart’s comparable store sales as the off-price retailer aimed to improve sales trends in the second half.
Net loss for the second quarter was $2.1 million or $0.04 per diluted share for 2019 compared to net loss of $1 million or $0.02 per diluted share for 2018.
Net sales for the second quarter of 2019 were $292.4 million compared to $310.9 million for the second quarter of 2018. Net sales were impacted by comparable sales results, including the event shift, and fewer stores operating during the quarter. Comparable sales for the second quarter of 2019 decreased 3.6%, or decreased 1.9% on an adjusted basis. Digital sales increased 7% over last year’s second quarter.
Comparable sales in the first quarter benefited by approximately 150 basis points from the shift of a 12-Hour Sale event from the second quarter to the first. Excluding the shift, adjusted comparable sales decreased an estimated 3.3% for the first quarter of 2019 and 1.9% for the second quarter.
“After a slow start to the quarter caused by the event shift and soft selling, comp sales stabilized in the combined June/July period to essentially flat,” said Hunt Hawkins, CEO, Stein Mart. “With our fall sales-driving initiatives beginning to roll out this month, we believe our comp sales trend will improve in the second half.”
This month, Stein Mart is launching its new kids department and buy online, pick up in store service. The company will also debut a fine jewelry product line by October. These and other initiatives are expected to drive incremental sales and store traffic beginning this fall.