How should you trade Stein Mart Inc. (NASDAQ:SMRT) after recent results, Gordmans Stores Inc. (NASDAQ:GMAN)

Posted by Lynn Eisler May 8, 2013 0 Comment 4048 views


Hartford, CT 05/08/2013 (GDPInsider) – Stein Mart Inc. (NASDAQ:SMRT) shares rose 4.22% to close at $10.13. Stein, a merchandise retailer offering fashion apparel for both men and women, announced a $5 million jump in its annual income for the year ended February 2, 2013.

The company’s net income was $25.0 million compared to net income of $19.9 million in 2011. Earnings per share rose to $0.57 in 2012 from $0.44 in 2011.

In addition, Stein Mart’s net income for the fourth quarter of 2012 was $13.5 million compared to net income of $5.9 million reported in 2011. While the EPS was $0.30 per diluted share compared to $0.13 announced in 2011.

The company, which operated 262 stores in 29 states as of January 2012, said it opened six new stores, five were closed, and four were relocated during the 2012 fiscal year. According to Stein Mart, 263 Stein Mart stores were operated compared to 262 at the end of 2011.

Stein Mart, 2013, expects the gross profit rate to be “slightly” less than in 2012. The company said it will also launch a new e-commerce business during the middle of this year with a representative merchandise selection. The company sees this as an important initiative from the point of view of generating sales in future.

Among others, one of the initiatives includes transitioning of supply chain distribution centers to company-operated locations from third-party, starting in the second quarter of 2013.

Commenting on the company’s earnings, Jay Stein, Chief Executive Officer said, “I am extremely proud of our 2012 sales performance which drove outstanding bottom line results. We did this by returning to those things that made this company great, including a compelling merchandise assortment, selectively lowering merchandise prices and controlling regular-price couponing. We are thankful that the financial restatement is now behind us and we continue to be keenly focused on running the business.”

Stein Mart has a market capitalization of $424.94 million.

Is SMRT a solid investment at these levels? Get valuable updates and exclusive insights here.

Fashion apparels cos earnings show “upward” trend

Gordmans Stores, Inc. (NASDAQ:GMAN) shares remained down to close at $11.25. Gordman Stores is an apparel and fashion retailer with a market capitalization of $220.38 million. The company reported 9.4% increase in its fourth quarter results to $202.5 million compared to $185.1 million from the last year. In addition, net sales for the full fiscal year rose 10.2% to $607.7 million from $551.5 million reported in 2011. The company opened nine new stores in four new markets during the year.

How Should Investors Trade GMAN Now? Get the latest trends and data here.

Disclosure:

WallStreetAnalyzed.com is not a registered investment advisor and nothing contained in any materials should be construed as a recommendation to buy or sell securities. Investors should always conduct their own due diligence with any potential investment. Please visit WallStreetAnalyzed.com website, for complete risks and disclosures.


About Lynn Eisler

Lynn Eisler is a national news reporter focusing on economic issues, data analysis and the financial health of state and local governments. Lynn has been honored with the H.L. Mencken Award for Investigative Reporting, the Champion of Justice Award for reporting on the drug war, and the John Hancock Award for business reporting. Lynn was also a Knight Medical School Fellow at the University of Michigan.

View all post by Lynn Eisler Visit author's website

Write Your Comment