Stein Mart (SMRTQ) 8-K Stein Mart, Inc. Reports 3Q and Year-to-date 2009 Financial Results

Exhibit 99.1

1200 RIVERPLACE BOULEVARD • JACKSONVILLE, FL 32207-1809 • (904) 346-1500

November 19, 2009	For more information:
	Susan Datz Edelman
FOR IMMEDIATE RELEASE	Director, Stockholder Relations
	(904) 346-1506
	sedelman@steinmart.com

STEIN MART, INC. REPORTS 3Q AND YEAR-TO-DATE 2009 FINANCIAL RESULTS

JACKSONVILLE, FL – Stein Mart, Inc. (Nasdaq: SMRT) today announced financial results for its third quarter and first nine months ended October 31, 2009.

Third Quarter of 2009

For the third quarter of 2009, the Company’s net earnings were $3.2 million or $0.07 per diluted share as compared to a net loss of $(14.1) million or $(0.34) per diluted share in 2008. Net sales decreased 9.6 percent to $270.2 million for the third quarter of 2009 from $298.8 million for the third quarter of 2008. Comparable store sales for the third quarter of 2009 decreased 6.2 percent from the same period a year ago.

Gross profit increased to $69.6 million or 25.8 percent of sales in the third quarter of 2009 compared to $67.5 million or 22.6 percent of sales in the same period last year. The gross profit rate increased primarily from increased markup and decreased markdowns, somewhat offset by a higher occupancy expense rate due to lack of sales leverage.

Selling, general and administrative (SG&A) expenses were $73.3 million or 27.1 percent of sales as compared to $93.5 million or 31.3 percent of sales during the same period last year. The $20.2 million decrease in SG&A resulted primarily from reduced operating expenses in the stores and in the corporate office, as well as lower advertising, store closing and depreciation expense.

During the third quarter, we reversed a portion of our valuation allowance for deferred tax assets as a result of a tax accounting method change and decreased our estimated annual effective tax rate due to changes in book/tax differences which resulted in favorable adjustments. If these favorable tax adjustments had not been recorded during this period, third quarter and year-to-date 2009 earnings would have been $2.5 million ($0.05 per diluted share) lower.

First Nine Months of 2009

For the first nine months of 2009, the Company’s net earnings were $20.8 million or $0.47 per diluted share as compared to a net loss of $(15.1) million or $(0.37) per diluted share for the same 2008 period. Net sales decreased 8.9 percent to $877.3 million for the nine months ended October 31, 2009 from $962.6 million for the same nine months in 2008. Comparable store sales for the first nine months of the year decreased 6.3 percent from the 2008 period to the 2009 period.

Gross profit increased to $241.9 million or 27.6 percent of sales in the first nine months of 2009 compared to $239.3 million or 24.9 percent of sales in the same period last year. The gross profit rate increased primarily from increased markup and decreased markdowns, somewhat offset by higher occupancy expense rate due to lack of sales leverage.

SG&A expenses were $227.4 million or 25.9 percent of sales as compared to $277.6 million or 28.8 percent of sales during the same period last year. The $50.2 million decrease in SG&A resulted primarily from reduced operating expenses in the stores and in the corporate office, as well as lower advertising, store closing and depreciation expense.

“We are pleased to report a profitable quarter despite continued challenging sales trends,” noted David H. Stovall, Jr., president and chief executive officer, “Our bottom line continues to benefit from lowered overall inventory levels, less clearance, reduced markdowns and lowered expenses.”

“Our challenge remains improving top line sales in a time when the customer appears determined to reduce her purchases,” Stovall continued. “We enter the holiday selling season focused on enticing the customer with fashion-right merchandise at compelling prices, special promotions, and a great in-store experience. Our plan in this highly competitive retail environment is to maximize our opportunities for the holiday selling season and to end the season with clean inventory, and positioned for an optimal start to 2010.”

Store network update

One new store opened and four stores were closed during the third quarter, resulting in 267 stores in operation at October 31, 2009 as compared to 279 at the same time last year. We have completed our store closing/opening activity for 2009.

Conference Call

A conference call for institutional analysts to discuss these results will be held at 10 a.m. ET today, Thursday, November 19, 2009. The call may be heard on the investor relations portion of the Company’s website athttp://ir.steinmart.com. A replay of the conference call will be available on the website through November 27, 2009.

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 original 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:

• consumer sensitivity to general economic conditions including continued uncertainty in the financial and credit markets

• the effectiveness of advertising,marketing and promotional strategies

• intense competition from other retailers

• changing preferences in apparel

• access to additional capital at favorable terms, if required

• ability to successfully negotiate advantageous lease terms with current landlords

• unanticipated weather conditions and unseasonable weather

• adequate sources of merchandise at acceptable prices

• the Company’s ability to attract and retain qualified employees

• seasonality, including the importance of the holiday selling season

• disruption of the Company’s distribution system

• acts of terrorism

• fluctuation in results could negatively impact stock price

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

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

Stein Mart, Inc.

Consolidated Balance Sheets

(Unaudited)

(In thousands, except for share data)

	October 31, 2009		January 31, 2009		November 1, 2008
ASSETS
Current assets:
Cash and cash equivalents	$	59,219	$	88,903	$	64,834
Trade and other receivables		10,000		9,011		7,754
Inventories		253,658		207,139		306,030
Income taxes receivable		-		24,439		18,482
Prepaid expenses and other current assets		13,806		12,089		14,553
Total current assets		336,683		341,581		411,653
Property and equipment, net		76,624		86,321		105,629
Other assets		16,622		21,988		29,368
Total assets	$	429,929	$	449,890	$	546,650
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	118,479	$	55,683	$	100,019
Accrued liabilities		79,963		79,794		77,438
Income taxes payable		226		-		-
Total current liabilities		198,668		135,477		177,457
Notes payable to banks		-		100,000		100,000
Other liabilities		20,146		28,063		28,926
Total liabilities		218,814		263,540		306,383
COMMITMENTS AND CONTINGENCIES
Stockholders’ equity:
Preferred stock - $.01 par value; 1,000,000 shares authorized; no shares issued or outstanding
Common stock - $.01 par value; 100,000,000 shares authorized; 42,843,900, 42,655,544 and 42,332,941 shares issued and outstanding, respectively		428		427		423
Additional paid-in capital		13,963		9,986		8,514
Retained earnings		195,961		175,152		231,330
Accumulated other comprehensive income		763		785		-
Total stockholders’ equity		211,115		186,350		240,267
Total liabilities and stockholders’ equity	$	429,929	$	449,890	$	546,650

Stein Mart, Inc.

Consolidated Statements of Operations

(Unaudited)

(In thousands, except per share amounts)

	13 Weeks Ended October 31, 2009		13 Weeks Ended November 1, 2008			39 Weeks Ended October 31, 2009			39 Weeks Ended November 1, 2008
Net sales	$	270,209	$	298,815		$	877,280		$	962,566
Cost of merchandise sold		200,608		231,351			635,400			723,234
Gross profit		69,601		67,464			241,880			239,332
Selling, general and administrative expenses		73,330		93,525			227,406			277,587
Other income, net		4,887		4,954			14,194			16,257
Income (loss) from operations		1,158		(21,107	)		28,668			(21,998	)
Interest income (expense), net		10		(519	)		(248	)		(1,091	)
Income (loss) before income taxes		1,168		(21,626	)		28,420			(23,089	)
Income tax benefit (provision)		2,031		7,508			(7,611	)		7,966
Net income (loss)	$	3,199	$	(14,118	)	$	20,809		$	(15,123	)
Net income (loss) per share:
Basic	$	0.07	$	(0.34	)	$	0.49		$	(0.37	)
Diluted	$	0.07	$	(0.34	)	$	0.47		$	(0.37	)
Weighted-average shares outstanding:
Basic		41,883		41,410			41,780			41,323
Diluted		44,251		41,410			43,344			41,323

Stein Mart, Inc.

Consolidated Statements of Cash Flows

(Unaudited)

(In thousands)

	39 Weeks Ended October 31, 2009			39 Weeks Ended November 1, 2008
Cash flows from operating activities:
Net income (loss)	$	20,809		$	(15,123	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization		14,476			19,027
Impairment of property and other assets		726			475
Change in valuation allowance for deferred tax assets		(5,781	)		-
Deferred income taxes		6,067			(584	)
Store closing charges		1,675			3,810
Share-based compensation		3,024			2,836
Tax benefit from equity issuances		255			-
Excess tax benefits from share-based compensation		(198	)		-
Changes in assets and liabilities:
Trade and other receivables		(989	)		4,618
Inventories		(46,519	)		(43,534	)
Income taxes receivable		24,439			(4,379	)
Prepaid expenses and other current assets		(1,717	)		(690	)
Other assets		3,368			1,898
Accounts payable		62,796			22,895
Accrued liabilities		683			872
Income taxes payable		226			-
Other liabilities		(8,522	)		(1,906	)
Net cash provided by (used in) operating activities		74,818			(9,785	)
Cash flows from investing activities:
Capital expenditures		(5,399	)		(13,924	)
Net cash used in investing activities		(5,399	)		(13,924	)
Cash flows from financing activities:
Borrowings under notes payable to banks		57,250			625,860
Repayments of notes payable to banks		(157,250	)		(552,993	)
Excess tax benefits from share-based compensation		198			-
Proceeds from exercise of stock options		691			-
Proceeds from employee stock purchase plan		96			548
Repurchase of common stock		(88	)		(17	)
Net cash (used in) provided by financing activities		(99,103	)		73,398
Net (decrease) increase in cash and cash equivalents		(29,684	)		49,689
Cash and cash equivalents at beginning of year		88,903			15,145
Cash and cash equivalents at end of period	$	59,219		$	64,834