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

Exhibit 99.1

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

December 23, 2011	For more information:
	Gregory W. Kleffner
FOR IMMEDIATE RELEASE	EVP, Chief Financial Officer
	(904) 346-1500
	investorrelations@steinmart.com

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

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

As the result of information technology systems issues discussed in the press release dated December 8, 2011, markdowns were understated in the earnings reported on November 17, 2011. The additional markdowns reduce gross margin and inventory by $2.2 million from what was reported previously for the third quarter. Understated markdowns in the second quarter were not material. The after tax impact of the additional third quarter markdowns increases the net loss previously released by $1.3 million or $0.03 per diluted share. Attached are revised financial statements which reflect the additional markdowns. Full financial statements and disclosures were filed yesterday on Form 10-Q, which was delayed until the final results were confirmed. As a result of the filing of Form 10-Q, the Company will be in full compliance with NASDAQ’s listing requirements.

Revised Results

Revised net loss for the quarter was $3.1 million or $0.07 per diluted share. For the first nine months, revised net income was $14.1 million or $0.31 per diluted share.

Sales were not impacted by this revision. Gross profit for the quarter, revised for the higher markdowns, was $59.3 million or 22.9 percent of net sales. For the first nine months of 2011 revised gross profit was $214.5 million or 25.8 percent of net sales.

Revised 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, revised net income as adjusted was $12.9 million and earnings per diluted share were $0.28.

Investor Presentation

Stein Mart’s updated 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		274,538		232,295		280,986
Prepaid expenses and other current assets		38,681		27,968		25,556
Total current assets		415,714		340,434		387,088
Property and equipment, net		100,564		79,964		77,313
Other assets		14,976		16,046		14,614
Total assets	$	531,254	$	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		239,335		225,225		228,637
Accumulated other comprehensive income		456		456		569
Total shareholders’ equity		255,930		247,251		248,682
Total liabilities and shareholders’ equity	$	531,254	$	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		199,264			199,862		617,686			620,208
Gross profit		59,256			68,025		214,547			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		(5,433	)		2,559		23,025			37,214
Interest income, net		16			13		23			37
Income (loss) before income taxes		(5,417	)		2,572		23,048			37,251
Income tax benefit (provision)		2,311			1,723		(8,938	)		(7,319	)
Net (loss) income	$	(3,106	)	$	4,295	$	14,110		$	29,932
Net (loss) income per share:
Basic	$	(0.07	)	$	0.10	$	0.31		$	0.68
Diluted	$	(0.07	)	$	0.10	$	0.31		$	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	$	14,110		$	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		(42,243	)		(62,861	)
Prepaid expenses and other current assets		(13,339	)		(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