Stein Mart (SMRTQ) 8-K Stein Mart, Inc. Reports Third Quarter and Year-to-date 2011 Financial Results

Exhibit 99.1

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

November 17, 2011	For more information:
	Gregory W. Kleffner
FOR IMMEDIATE RELEASE	EVP, Chief Financial Officer
	(904) 346-1500
	investorrelations@steinmart.com

STEIN MART, INC. REPORTS THIRD QUARTER AND YEAR-TO-DATE 2011 FINANCIAL RESULTS

JACKSONVILLE, FL – Stein Mart, Inc. (Nasdaq: SMRT) today announced financial results for its third quarter and first nine months ended October 29, 2011.

Overview of Results

Net loss for the quarter was $1.8 million or $0.04 per diluted share compared to net income of $4.3 million or $0.10 per diluted share in 2010. Net income as adjusted for the third quarter of 2010 was $1.6 million or $0.04 per diluted share. See “Results as Adjusted” for information on “as adjusted” amounts for 2011 and 2010.

For the first nine months, net income was $15.4 million or $0.34 per diluted share compared to net income of $29.9 million or $0.67 per diluted share for the same period in 2010. Net income as adjusted for the first nine months of 2011 was $14.2 million or $0.31 per diluted share compared with $17.3 million or $0.39 per diluted share in 2010.

Comparable store sales decreased 2.9 percent for the quarter. Net sales were $258.5 million, a decrease of 3.5 percent from $267.9 million in 2010. Sales during the quarter improved relative to last year from the significant shortfall in August to the October comparable sales increase of 0.1%. As we previously reported, August sales were adversely impacted by a shift in our advertising media mix for the largest promotional event of the month and Hurricane Irene. Comparable store sales for the first nine months of 2011 decreased 0.7 percent. Net sales for the first nine months of 2011 were $832.2 million, a decrease of 1.5 percent, compared to $844.8 in the same period in 2010.

“While not where we want them to be, we are pleased that our sales gained momentum after August, returning to slightly positive comps for October,” said Jay Stein, interim chief executive officer of Stein Mart, Inc. “However, the shortfall in sales at the beginning of the quarter drove lower margins as we were aggressive in clearing inventories to keep them aligned with our sales results.”

“We are satisfied with the October sales results given our reliance on fewer coupons”, added Stein. “Promotions will continue to be an important driver of customer foot traffic but we need to get back to being an every day value merchandise focused retailer. We are working to seek the right promotional balance to increase our traffic while keeping margins at acceptable levels.”

In the third quarter, gross profit decreased to $61.5 million or 23.8 percent of net sales compared to $68.0 million or 25.4 percent of net sales in the third quarter 2010. The decrease in the gross profit rate is the result of higher markdowns, negative leverage of occupancy costs and higher buying costs.

Also in the third quarter, selling, general and administrative expenses (“SG&A”) increased slightly to $71.3 million or 27.6 percent of net sales compared to $70.2 million or 26.2 percent of net sales during the same period last year. Other income was $1.9 million higher than in 2010 due mostly to a $1.6 million performance-based incentive from General Electric Money Bank related to our credit card portfolio under the prior agreement.

For the first nine months of 2011 gross profit was $216.7 million or 26.0 percent of net sales compared to $224.6 million or 26.6 percent of net sales in 2010. The gross profit rate decreased as a result of higher markdowns and buying costs. SG&A decreased to $211.6 million or 25.4 percent of net sales in the first nine months of 2011 from $211.9 million or 25.1 percent of net sales last year.

Other income was $20.1 million in the first nine months of 2011 compared to $24.4 million in 2010. Other income as adjusted increased to $18.0 million from $14.8 million in 2010 due to higher income from the credit card program and the leased shoe department.

Results as Adjusted

Results for the first nine months of 2011 include a first quarter pre-tax gain of $2.0 million ($1.2 million after tax or $0.03 per diluted share) to correct an error in the Company’s credit card reward liability (recorded in other income). Excluding this gain, net income as adjusted was $14.2 million and earnings per diluted share were $0.31.

Results for the first nine months of 2010 include a net pre-tax gain of $8.5 million, comprised of a $9.7 million gain to recognize cumulative breakage on unused gift and merchandise return cards (reported in other income) and an offsetting pre-tax charge of $1.2 million associated with changing the physical inventory process (reported in SG&A expense). These items, which were recorded in the second quarter, positively impacted net earnings per share by $0.14 in 2010. Adjusted results for 2010 exclude this net gain.

The effective tax rate (ETR) was lower in 2010 than 2011 due to the impact of favorable changes in book/tax differences on the deferred tax valuation allowance and favorable settlements of state income tax examinations which benefitted 2010 earnings. Adjusted 2010 net income and diluted earnings per share using the 2011 normalized ETR of 39.7 percent were $1.6 million and $0.04 for the third quarter and $17.3 million and $0.39 for the first nine months.

Balance Sheet Highlights

Cash at the end of the third quarter of 2011 was $102.5 million, an increase of $22.0 million from the same time last year. We continue to have no debt. Inventories were $276.7 million at the end of the third quarter compared to $281.0 million in 2010, a decrease of 1.5 percent.

Share buyback

During the third quarter of 2011, the Company repurchased 1.1 million shares at a total cost of $7.8 million. Total purchases under the current repurchase authorization total 1.4 million at a cost of $10.2 million.

Store network

Two stores were opened during the third quarter bringing the total number of stores to 262 on October 29, 2011, compared to 263 at the same time last year. The Company relocated two stores in the third quarter. The Company opened a new store in Denver last week and expects to close one store at the end of the fourth quarter resulting in 262 stores at year-end.

Conference Call

A conference call for investment analysts to discuss the Company’s third quarter results will be held at 10 a.m. ET today, Thursday, November 17, 2011. 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 30, 2011.

Investor Presentation

Stein Mart’s third quarter 2011 investor presentation has been posted to the investor relations portion of the Company’s website athttp://ir.steinmart.com.

About Stein Mart

Stein Mart stores offer the fashion merchandise, service and presentation of a better department or specialty store, at prices competitive with off-price retail chains. 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, shoes and home fashions.

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:

• continued consumer sensitivity to economic conditions

• on-going competition from other retailers

• changing preferences in apparel

• the effectiveness of advertising,marketing and promotional strategies

• ability to negotiate acceptable lease terms with current landlords

• ability to successfully implement strategies to exit under-performing stores

• unanticipated weather conditions and unseasonable weather

• adequate sources of merchandise at acceptable prices

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

• disruption of the Company’s distribution system

• acts of terrorism

• 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 at www.steinmart.com

Stein Mart, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

(In thousands, except for share data)

	October 29, 2011		January 29, 2011		October 30, 2010
ASSETS
Current assets:
Cash and cash equivalents	$	102,495	$	80,171	$	80,546
Inventories		276,738		232,295		280,986
Prepaid expenses and other current assets		37,807		27,968		25,556
Total current assets		417,040		340,434		387,088
Property and equipment, net		100,564		79,964		77,313
Other assets		14,976		16,046		14,614
Total assets	$	532,580	$	436,444	$	479,015
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	168,378	$	95,545	$	137,573
Accrued expenses and other current liabilities		74,641		72,587		73,069
Total current liabilities		243,019		168,132		210,642
Other liabilities		32,305		21,061		19,691
Total liabilities		275,324		189,193		230,333
COMMITMENTS AND CONTINGENCIES
Shareholders’ 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; 43,654,608, 44,396,504 and 43,460,452 shares issued and outstanding, respectively		437		444		435
Additional paid-in capital		15,702		21,126		19,041
Retained earnings		240,661		225,225		228,637
Accumulated other comprehensive income		456		456		569
Total shareholders’ equity		257,256		247,251		248,682
Total liabilities and shareholders’ equity	$	532,580	$	436,444	$	479,015

Stein Mart, Inc.

Condensed Consolidated Statements of Operations

(Unaudited)

(In thousands, except per share amounts)

	13 Weeks Ended October 29, 2011			13 Weeks Ended October 30, 2010		39 Weeks Ended October 29, 2011			39 Weeks Ended October 30, 2010
Net sales	$	258,520		$	267,887	$	832,233		$	844,840
Cost of merchandise sold		197,064			199,862		615,486			620,208
Gross profit		61,456			68,025		216,747			224,632
Selling, general and administrative expenses		71,291			70,165		211,581			211,852
Other income, net		6,602			4,699		20,059			24,434
Income (loss) from operations		(3,233	)		2,559		25,225			37,214
Interest income, net		16			13		23			37
Income (loss) before income taxes		(3,217	)		2,572		25,248			37,251
Income tax benefit (provision)		1,437			1,723		(9,812	)		(7,319	)
Net income (loss)	$	(1,780	)	$	4,295	$	15,436		$	29,932
Net income (loss) per share:
Basic	$	(0.04	)	$	0.10	$	0.34		$	0.68
Diluted	$	(0.04	)	$	0.10	$	0.34		$	0.67
Weighted-average shares outstanding:
Basic		43,248			42,677		43,731			42,600
Diluted		43,248			43,714		44,038			43,509

Stein Mart, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(In thousands)

	39 Weeks Ended October 29, 2011			39 Weeks Ended October 30, 2010
Cash flows from operating activities:
Net income	$	15,436		$	29,932
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		13,714			12,937
Share-based compensation		2,544			2,281
Store closing charges		327			286
Impairment of property and other assets		—			575
Deferred income taxes		11,652			6,570
Change in valuation allowance for deferred tax assets		—			(6,570	)
Tax (deficiency) benefit from equity issuances		(233	)		2,077
Excess tax benefits from share-based compensation		(303	)		(2,032	)
Changes in assets and liabilities:
Inventories		(44,443	)		(62,861	)
Prepaid expenses and other current assets		(12,465	)		(4,266	)
Other assets		(1,222	)		(498	)
Accounts payable		72,833			57,255
Accrued expenses and other current liabilities		(2,878	)		(13,504	)
Other liabilities		1,223			(1,348	)
Net cash provided by operating activities		56,185			20,834
Cash flows from investing activities:
Capital expenditures		(24,366	)		(22,007	)
Net cash used in investing activities		(24,366	)		(22,007	)
Cash flows from financing activities:
Capital lease payments		(2,056	)		—
Excess tax benefits from share-based compensation		303			2,032
Proceeds from exercise of stock options and other		2,500			834
Repurchase of common stock		(10,242	)		(2,122	)
Net cash (used in) provided by financing activities		(9,495	)		744
Net increase (decrease) in cash and cash equivalents		22,324			(429	)
Cash and cash equivalents at beginning of year		80,171			80,975
Cash and cash equivalents at end of period	$	102,495		$	80,546