JACKSONVILLE, Fla., Jan. 7 /PRNewswire-FirstCall/ -- Stein Mart, Inc. (Nasdaq: SMRT) today reported total sales and comparable store sales for the fiscal period(s) ended January 3, 2009.



                            Total Sales (in millions)    Percent Change
                                                      Total    Comparable
    Fiscal period                2008       2007      Sales    Store Sales
    December (5 weeks)         $178.0     $196.3      (9.3)%     (8.5)%
    Quarter to date (9 weeks)  $296.8     $336.4     (11.8)%    (10.9)%
    Year to date (48 weeks)  $1,259.4   $1,376.6      (8.5)%    (10.6)%

During December, ladies' social and dresses had the best sales performance, followed closely by ladies' casual sportswear, ladies' accessories and men's furnishings. The most difficult businesses were gifts and linens. In general, sales were better than trend west of the Mississippi River, but continued to be weak in the Southeast, especially Florida.

"As expected, it was a very challenging Christmas selling season, although our sales trend improved somewhat just prior to and following the actual Christmas holiday," commented David H. Stovall, Jr., president and chief executive officer of Stein Mart, Inc. "We did take extensive markdowns in order to clear seasonal merchandise, and ended the month with total inventories down 21% as compared to the same period last year."

At January 3, 2009, there were 278 stores in operation as compared to 280 at the same time last year.

Expense reductions

As a result of the continued sales declines and the uncertainty of future business trends, a number of additional expense reduction actions will be effective immediately. These include reducing the number of assistant managers in most Stein Mart stores from two to one, resulting in the elimination of 178 positions, and the contraction of some additional store workforce hours. In addition, 31 field and corporate positions are also being eliminated, including 12 positions at the home office in Jacksonville. All remaining management will sustain a five percent salary reduction, and the Company has suspended its corporate matching contribution to associates' 401(k) and deferred compensation plans.

These initiatives should help align selling, general and administrative (SG&A) expenses with the Company's reduced revenues, and are in addition to earlier, already-announced reductions in management headcount, associate workforce hours and renegotiated contracts for non-merchandise procurement. Today's announcement and the earlier actions together should result in savings of $25 million in 2009. These savings do not include any benefit from the previously announced changes to the Company's supply chain/distribution process, which are expected to provide significant benefits when fully operational in 2010.

"These decisions, while difficult, underscore our philosophy to be fiscally conservative in a volatile economic climate," noted Stovall. "Coupled with the Company's decisions to reduce capital expenditures and conserve cash, these expense reductions will enable us to compete in the current economic environment."

About Stein Mart

Stein Mart stores offer the fashion merchandise, service and presentation of a better department or specialty store, at prices up to 60 percent off department and specialty store prices, every day. Currently with locations from California to Massachusetts, Stein Mart's focused assortment of merchandise features current season, moderate to better fashion apparel for women and men, as well as accessories, gifts, linens and shoes.

SAFE HARBOR STATEMENT>>>>>>>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 future periods to differ materially from forecasted or expected results. Those risks include, without limitation:



    -- changes in consumer spending due to general economic conditions
       including uncertainty in the financial and credit markets
    -- the effectiveness of advertising, marketing and promotional strategies
    -- on-going competition from other retailers
    -- changing preferences in apparel
    -- unanticipated weather conditions and unseasonable weather
    -- adequate sources of merchandise at acceptable prices
    -- availability of new store sites at acceptable lease terms
    -- the Company's ability to attract and retain qualified employees to
       support planned growth
    -- ability to successfully implement strategies to exit or improve under-
       performing stores
    -- disruption of the Company's distribution system
    -- acts of terrorism

and the other risks and uncertainties described in the Company's filings with the Securities and Exchange Commission.

SMRT-S

Additional information about Stein Mart, Inc. can be found at www.steinmart.com

SOURCE Stein Mart, Inc.