Stein Mart Announces CEO Change
September 29 2016 - 7:30AM
Stein Mart, Inc. (NASDAQ:SMRT) (the “Company”) today announced that
Dawn Robertson has tendered her resignation as Chief Executive
Officer and as a director, and the Company’s Board of Directors
accepted that resignation effective as of September 27, 2016. Ms.
Robertson also performed the duties of the chief merchandising
officer. D. Hunt Hawkins, Stein Mart’s President and Chief
Operating Officer, has been named Interim CEO and the Company will
initiate a search for a new chief merchandising officer.
“Some of the sales initiatives that have been
developed under Dawn’s leadership are important for our future and
we will continue to cultivate them to drive sales in this
challenging retail environment,” said Jay Stein, Chairman of the
Board. “Hunt has been a valued leader at Stein Mart for over 20
years. The Board and I are confident in his ability to guide our
associates and to continue implementing our strong sales
strategies.”
Mr. Hawkins, 57, started his career with Stein Mart
as Senior Vice President, Human Resources and was promoted to
Executive Vice President of Operations in 2006, to Executive Vice
President, Chief Administrative Officer in 2007, to Executive Vice
President, Chief Operating Officer in 2011 and to President and
Chief Operating Officer in 2014.
“I appreciate the confidence the Board has in me
during this important time for the Company and look forward to
serving in my new role,” said Hunt Hawkins. “One of my first
priorities is to help our associates with their focus on the key
objectives needed to have a successful fall selling season.”
Preview of Third Quarter ResultsComparable store
sales for the third quarter (which ends October 29, 2016) have
decreased approximately 4 percent through September 27 compared to
the same period last year. Sales results have improved somewhat in
September after a challenging start and several missteps in
August.
“We believe that several of the new merchandising
strategies that have been developed this year will positively
impact our future sales. However, implementation has been too rapid
and has been challenging for our customers,” said Hunt
Hawkins. “It is important that we remain focused on meeting
the needs of our existing customers as we drive change.”
With sales lower than anticipated, the third
quarter gross profit rate could be approximately 150 basis points
lower than the third quarter of 2015 due to higher markdowns and
higher occupancy costs, mostly from our new stores, which do not
leverage on softer sales. The third quarter will include an
approximate $1.6 million charge in connection with Ms. Robertson’s
departure.
For the full year, we continue to expect selling,
general and administrative expenses to be approximately $360
million. Financial results for the third quarter will be reported
prior to the opening of the U.S. financial markets on Thursday,
November 17, 2016.
About Stein MartStein Mart, Inc. (NASDAQ:SMRT) is a
national retailer offering designer and name-brand fashion,
accessories and home decor at everyday discount prices. Stein Mart
provides real value that customers will love every day both in
stores and online. Stein Mart currently operates 283 stores across
31 states and has plans to expand over the next year. Stein Mart is
adding new modern brands to its stores this year to offer
discriminating shoppers even more of the fashion and savings they
want. For more information, please visit www.steinmart.com.
Cautionary Statement Regarding Forward-Looking
Statements
Except for historical information contained herein, the statements
in this release may be forward-looking, and are made pursuant to
the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. The Company does not assume any obligation to
update or revise any forward-looking statements even if experience
or future changes make it clear that projected results expressed or
implied will not be realized. Forward-looking statements involve
known and unknown risks and uncertainties that may cause Stein
Mart’s actual results in current and future periods to differ
materially from forecasted or expected results. Those risks
include, without limitation: consumer sensitivity to economic
conditions, competition in the retail industry, changes in consumer
preferences and fashion trends, ability to implement our strategic
plans to sustain profitable growth, effectiveness of advertising
and marketing, capital availability and debt levels, ability to
negotiate acceptable lease terms with current and potential
landlords, ability to successfully implement strategies to exit
under-performing stores, extreme and/or unseasonable weather
conditions, adequate sources of merchandise at acceptable prices,
dependence on certain key personnel and ability to attract and
retain qualified employees, impacts of seasonality, increases in
the cost of compensation and employee benefits, disruption of the
Company’s distribution process, dependence on imported merchandise,
information technology failures, data security breaches, single
supplier for shoe department, single provider for ecommerce
website, acts of terrorism, ability to adapt to new regulatory
compliance and disclosure obligations, material weaknesses in
internal control over financial reporting and other risks and
uncertainties described in the Company’s filings with the SEC.
SMRT-F
Linda Tasseff
Director, Investor Relations
(904) 858-2639
ltasseff@steinmart.com
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