Stein Mart (SMRTQ) 10-Q 4 Sep 14 2014 Q2 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	6 Months Ended
	Aug. 02, 2014	Aug. 22, 2014
Document And Entity Information [Abstract]	'	'
Document Type	'10-Q	'
Amendment Flag	'false	'
Document Period End Date	2-Aug-14	'
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q2	'
Entity Registrant Name	'STEIN MART INC	'
Entity Central Index Key	'0000884940	'
Current Fiscal Year End Date	'--01-31	'
Entity Filer Category	'Accelerated Filer	'
Entity Common Stock, Shares Outstanding	'	44,933,564

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (Unaudited) (USD $)	Aug. 02, 2014	Feb. 01, 2014	Aug. 03, 2013
In Thousands, unless otherwise specified
Current assets:	'	'	'
Cash and cash equivalents	$53,097	$66,854	$48,146
Inventories	266,215	261,517	250,728
Prepaid expenses and other current assets	26,703	28,800	19,769
Total current assets	346,015	357,171	318,643
Property and equipment, net of accumulated depreciation and amortization of $163,205, $152,280 and $143,916, respectively	147,605	139,673	136,490
Other assets	28,887	27,414	26,561
Total assets	522,507	524,258	481,694
Current liabilities:	'	'	'
Accounts payable	120,635	131,338	114,121
Accrued expenses and other current liabilities	57,349	64,875	55,825
Total current liabilities	177,984	196,213	169,946
Deferred rent	30,804	26,626	23,666
Other liabilities	37,196	37,018	33,896
Total liabilities	245,984	259,857	227,508
COMMITMENTS AND CONTINGENCIES	'	'	'
Shareholders' equity:	'	'	'
Preferred stock-$.01 par value; 1,000,000 shares authorized; no shares issued or outstanding	0	0	0
Common stock-$.01 par value; 100,000,000 shares authorized; 44,936,387, 44,551,676 and 44,275,662 shares issued and outstanding, respectively	449	446	443
Additional paid-in capital	30,650	28,745	21,741
Retained earnings	245,680	235,471	232,466
Accumulated other comprehensive loss	-256	-261	-464
Total shareholders' equity	276,523	264,401	254,186
Total liabilities and shareholders' equity	$522,507	$524,258	$481,694

Condensed_Consolidated_Balance1

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $)	Aug. 02, 2014	Feb. 01, 2014	Aug. 03, 2013
In Thousands, except Share data, unless otherwise specified
Statement Of Financial Position [Abstract]	'	'	'
Accumulated depreciation and amortization	$163,205	$152,280	$143,916
Preferred stock, par value	$0.01	$0.01	$0.01
Preferred stock, shares authorized	1,000,000	1,000,000	1,000,000
Preferred stock, shares issued	0	0	0
Preferred stock, shares outstanding	0	0	0
Common stock, par value	$0.01	$0.01	$0.01
Common stock, shares authorized	100,000,000	100,000,000	100,000,000
Common stock, shares issued	44,936,387	44,551,676	44,275,662
Common stock, shares outstanding	44,936,387	44,551,676	44,275,662

Condensed_Consolidated_Stateme

Condensed Consolidated Statements of Income (Unaudited) (USD $)	3 Months Ended		6 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Aug. 02, 2014	Aug. 03, 2013	Aug. 02, 2014	Aug. 03, 2013
Income Statement [Abstract]	'	'	'	'
Net sales	$298,157	$290,969	$627,011	$612,333
Cost of merchandise sold	213,913	210,653	438,441	434,072
Gross profit	84,244	80,316	188,570	178,261
Selling, general and administrative expenses	81,451	74,473	162,680	148,036
Operating income	2,793	5,843	25,890	30,225
Interest expense, net	69	67	134	128
Income before income taxes	2,724	5,776	25,756	30,097
Income tax expense	987	2,362	9,944	11,991
Net income	$1,737	$3,414	$15,812	$18,106
Net income per share:	'	'	'	'
Basic	$0.04	$0.08	$0.35	$0.41
Diluted	$0.04	$0.08	$0.35	$0.41
Weighted-average shares outstanding:	'	'	'	'
Basic	43,814	42,931	43,822	42,872
Diluted	44,704	43,707	44,580	43,485
Dividends declared per common share	$0	$0.05	$0.13	$0.05

Condensed_Consolidated_Stateme1

Condensed Consolidated Statements of Comprehensive Income (Unaudited) (USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Aug. 02, 2014	Aug. 03, 2013	Aug. 02, 2014	Aug. 03, 2013
Statement Of Income And Comprehensive Income [Abstract]	'	'	'	'
Net income	$1,737	$3,414	$15,812	$18,106
Other comprehensive income, net of tax:	'	'	'	'
Amounts reclassified from accumulated other comprehensive income	2	3	5	5
Comprehensive income	$1,739	$3,417	$15,817	$18,111

Condensed_Consolidated_Stateme2

Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)	6 Months Ended
In Thousands, unless otherwise specified	Aug. 02, 2014	Aug. 03, 2013
Cash flows from operating activities:	'	'
Net income	$15,812	$18,106
Adjustments to reconcile net income to net cash provided by operating activities:	'	'
Depreciation and amortization	14,322	13,815
Share-based compensation	3,545	3,297
Store closing charges	-25	-261
Impairment of property and other assets	96	'
Loss on disposals of property and equipment	75	254
Deferred income taxes	891	2,157
Tax benefit (deficiency) from equity issuances	756	-459
Excess tax benefits from share-based compensation	-786	-157
Changes in assets and liabilities:	'	'
Inventories	-4,698	-7,383
Prepaid expenses and other current assets	149	485
Other assets	-1,473	145
Accounts payable	-10,759	-16,851
Accrued expenses and other current liabilities	-7,600	-8,839
Other liabilities	5,418	-1,570
Net cash provided by operating activities	15,723	2,739
Cash flows from investing activities:	'	'
Acquisition of property and equipment	-22,289	-18,989
Net cash used in investing activities	-22,289	-18,989
Cash flows from financing activities:	'	'
Cash dividends paid	-5,584	-2,214
Capital lease payments	'	-2,197
Excess tax benefits from share-based compensation	786	157
Proceeds from exercise of stock options and other	413	1,520
Repurchase of common stock	-2,806	-103
Net cash used in financing activities	-7,191	-2,837
Net decrease in cash and cash equivalents	-13,757	-19,087
Cash and cash equivalents at beginning of year	66,854	67,233
Cash and cash equivalents at end of period	$53,097	$48,146

Basis_of_Presentation

Basis of Presentation	6 Months Ended
	Aug. 02, 2014
Accounting Policies [Abstract]	'
Basis of Presentation	'
	1. Basis of Presentation
	The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting primarily of normal and recurring adjustments) considered necessary for a fair statement have been included. Due to the seasonality of our business, results for any quarter are not necessarily indicative of the results that may be achieved for a full fiscal year. For further information, refer to the Consolidated Financial Statements and footnotes thereto included in our annual report on Form 10-K for the year ended February 1, 2014.
	As used herein, the terms “we,” “our,” “us,” “Stein Mart” and the “Company” refer to Stein Mart, Inc. and its wholly-owned subsidiaries.
	Recent Accounting Pronouncement
	In 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. Under ASU No. 2013-11, an entity is required to present an unrecognized tax benefit, or a portion of an unrecognized tax benefit, in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. If a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. ASU No. 2013-11 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. We adopted this guidance in the first quarter of 2014. The application of this guidance did not have an impact on our consolidated financial statements or disclosures.
	In 2014, the FASB issued ASU No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, which raises the threshold for disposals to qualify as discontinued operations. ASU No. 2014-08 defines a discontinued operation as (1) a component of an entity or group of components that has been disposed of or classified as held for sale and represents a strategic shift that has or will have a major effect on an entity’s operations and financial results; or (2) an acquired business that is classified as held for sale on the acquisition date. Under ASU No. 2014-08, additional disclosures are required regarding discontinued operations, as well as material disposals that do not meet the definition of discontinued operations. The application of this guidance is prospective from the date of adoption and applies only to disposals (or new classifications to held for sale) that have not been reported as discontinued operations in previously issued financial statements. We adopted ASU No. 2014-08 in the first quarter of 2014. The application of this guidance did not have an impact on our consolidated financial statements or disclosures.
	In 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, amending revenue recognition guidance and requiring more detailed disclosures to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The guidance is effective for annual and interim reporting periods beginning after December 15, 2016, with early adoption prohibited. We are currently evaluating the impact this ASU will have on our consolidated financial statements.
	Reclassifications
	We have made certain reclassifications in the Condensed Consolidated Balance Sheets related to the difference between the amount charged to rent expense and the rent paid as well as construction allowances and other lease incentives which were presented in Other liabilities and have been reclassified to Deferred rent.

Fair_Value_Measurements

Fair Value Measurements	6 Months Ended
	Aug. 02, 2014
Fair Value Disclosures [Abstract]	'
Fair Value Measurements	'
	2. Fair Value Measurements
	Assets and Liabilities Measured at Fair Value on a Recurring Basis
	We have money market fund investments classified as cash equivalents which are Level 1 assets because fair value is based on readily available market prices. The fair value of these assets was $41.2 million at August 2, 2014, $56.2 million at February 1, 2014, and $36.2 million at August 3, 2013.

Revolving_Credit_Agreement

Revolving Credit Agreement	6 Months Ended
	Aug. 02, 2014
Debt Disclosure [Abstract]	'
Revolving Credit Agreement	'
	3. Revolving Credit Agreement
	We have an amended and restated revolving credit agreement (the “Credit Agreement”) dated October 28, 2011. The Credit Agreement provides for a $100 million senior secured revolving credit facility which can be increased to $150 million. The Credit Agreement matures on February 28, 2017. Borrowings under the Credit Agreement are based on and secured by eligible credit card receivables and inventory.
	The amount available for direct borrowing was $93.4 million at August 2, 2014, and is based on 90% of eligible credit card receivables and inventories less reserves, as defined in the Credit Agreement. The amount available for borrowing represents the capped borrowing base of $100 million reduced by outstanding letters of credit of $6.6 million. The Credit Agreement contains customary affirmative and negative covenants, including limitations on granting of liens, certain investments, additional indebtedness, prepayments on indebtedness and disposition of inventory. The credit agreement permits the payment of dividends if we are not in default and payment conditions are satisfied. We had no direct borrowings under the Credit Agreement at August 2, 2014, February 1, 2014 and August 3, 2013.

Shareholders_Equity

Shareholders' Equity	6 Months Ended
	Aug. 02, 2014
Equity [Abstract]	'
Shareholders' Equity	'
	4. Shareholders’ Equity
	Stock Repurchase Plan
	During the 26 weeks ended August 2, 2014, we repurchased 222,494 shares of our common stock at a total cost of $2.8 million. During the 26 weeks ended August 3, 2013, we repurchased 10,003 shares of our common stock at a total cost of $0.1 million. Stock repurchases were for taxes due on the vesting of employee stock awards and during the first half of 2014 included 103,352 shares purchased on the open market under our previously authorized stock repurchase plan. As of August 2, 2014, there are 580,697 shares which can be repurchased pursuant to the Board of Director’s current authorization.

Earnings_Per_Share

Earnings Per Share	6 Months Ended
	Aug. 02, 2014
Earnings Per Share [Abstract]	'
Earnings Per Share	'
	5. Earnings Per Share
	We calculate earnings per common share (“EPS”) using the two-class method. Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and are included in the computation of EPS. Our restricted stock awards in 2013 and prior are considered “participating securities” because they contain non-forfeitable rights to dividends.
	The following table presents the calculation of basic and diluted EPS (shares in thousands):
		13 Weeks Ended		13 Weeks Ended		26 Weeks Ended		26 Weeks Ended
		August 2, 2014		August 3, 2013		August 2, 2014		August 3, 2013
	Basic Earnings Per Common Share:
	Net income	$	1,737	$	3,414	$	15,812	$	18,106
	Income allocated to participating securities		24		96		309		464
	Net income available to common shareholders	$	1,713	$	3,318	$	15,503	$	17,642
	Basic weighted-average shares outstanding		43,814		42,931		43,822		42,872
	Basic earnings per share	$	0.04	$	0.08	$	0.35	$	0.41
	Diluted Earnings Per Common Share:
	Net income	$	1,737	$	3,414	$	15,812	$	18,106
	Income allocated to participating securities		24		95		306		459
	Net income available to common shareholders	$	1,713	$	3,319	$	15,506	$	17,647
	Basic weighted-average shares outstanding		43,814		42,931		43,822		42,872
	Incremental shares from share-based compensation plans		890		776		758		613
	Diluted weighted-average shares outstanding		44,704		43,707		44,580		43,485
	Diluted earnings per share	$	0.04	$	0.08	$	0.35	$	0.41
	Options to acquire shares totaling approximately 0.3 million and 0.1 million shares of common stock that were outstanding during the second quarters of 2014 and 2013, respectively, were not included in the computation of diluted earnings per common share. Options excluded were those that had exercise prices greater than the average market price of the common shares such that inclusion would have been anti-dilutive. For the first 6 months of 2014 and 2013, options to acquire shares of approximately 0.2 million and 0.6 million shares of common stock, respectively, were not included in the computation of diluted earnings per share for the aforementioned reasons.

Commitments_and_Contingencies

Commitments and Contingencies	6 Months Ended
	Aug. 02, 2014
Commitments And Contingencies Disclosure [Abstract]	'
Commitments and Contingencies	'
	6. Commitments and Contingencies
	On July 24, 2013, the Securities and Exchange Commission (the “SEC”) informed us that it was conducting an investigation of the Company and made a request for voluntary production of documents and information. The request is focused on our 2013 restatement of prior financial statements and our change in auditors. We are cooperating fully with the SEC in this matter. We are unable to predict what action, if any, might be taken in the future by the SEC as a result of the matters that are the subject of the investigation or what impact the cost of responding to the investigation might have on our financial condition or results of operations.
	In addition, we are involved in various routine legal proceedings incidental to the conduct of our business. Based upon the advice of outside legal counsel, we do not believe that any of these legal proceedings will have a material adverse effect on our consolidated financial condition, results of operations or cash flows.

Basis_of_Presentation_Policies

Basis of Presentation (Policies)	6 Months Ended
	Aug. 02, 2014
Accounting Policies [Abstract]	'
Basis of Presentation	'
	1. Basis of Presentation
	The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting primarily of normal and recurring adjustments) considered necessary for a fair statement have been included. Due to the seasonality of our business, results for any quarter are not necessarily indicative of the results that may be achieved for a full fiscal year. For further information, refer to the Consolidated Financial Statements and footnotes thereto included in our annual report on Form 10-K for the year ended February 1, 2014.
	As used herein, the terms “we,” “our,” “us,” “Stein Mart” and the “Company” refer to Stein Mart, Inc. and its wholly-owned subsidiaries.
Recent Accounting Pronouncement	'
	Recent Accounting Pronouncement
	In 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. Under ASU No. 2013-11, an entity is required to present an unrecognized tax benefit, or a portion of an unrecognized tax benefit, in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. If a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. ASU No. 2013-11 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. We adopted this guidance in the first quarter of 2014. The application of this guidance did not have an impact on our consolidated financial statements or disclosures.
	In 2014, the FASB issued ASU No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, which raises the threshold for disposals to qualify as discontinued operations. ASU No. 2014-08 defines a discontinued operation as (1) a component of an entity or group of components that has been disposed of or classified as held for sale and represents a strategic shift that has or will have a major effect on an entity’s operations and financial results; or (2) an acquired business that is classified as held for sale on the acquisition date. Under ASU No. 2014-08, additional disclosures are required regarding discontinued operations, as well as material disposals that do not meet the definition of discontinued operations. The application of this guidance is prospective from the date of adoption and applies only to disposals (or new classifications to held for sale) that have not been reported as discontinued operations in previously issued financial statements. We adopted ASU No. 2014-08 in the first quarter of 2014. The application of this guidance did not have an impact on our consolidated financial statements or disclosures.
	In 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, amending revenue recognition guidance and requiring more detailed disclosures to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The guidance is effective for annual and interim reporting periods beginning after December 15, 2016, with early adoption prohibited. We are currently evaluating the impact this ASU will have on our consolidated financial statements.

Earnings_Per_Share_Tables

Earnings Per Share (Tables)	6 Months Ended
	Aug. 02, 2014
Earnings Per Share [Abstract]	'
Basic and Diluted Income Per Common Share	'
	The following table presents the calculation of basic and diluted EPS (shares in thousands):
		13 Weeks Ended		13 Weeks Ended		26 Weeks Ended		26 Weeks Ended
		August 2, 2014		August 3, 2013		August 2, 2014		August 3, 2013
	Basic Earnings Per Common Share:
	Net income	$	1,737	$	3,414	$	15,812	$	18,106
	Income allocated to participating securities		24		96		309		464
	Net income available to common shareholders	$	1,713	$	3,318	$	15,503	$	17,642
	Basic weighted-average shares outstanding		43,814		42,931		43,822		42,872
	Basic earnings per share	$	0.04	$	0.08	$	0.35	$	0.41
	Diluted Earnings Per Common Share:
	Net income	$	1,737	$	3,414	$	15,812	$	18,106
	Income allocated to participating securities		24		95		306		459
	Net income available to common shareholders	$	1,713	$	3,319	$	15,506	$	17,647
	Basic weighted-average shares outstanding		43,814		42,931		43,822		42,872
	Incremental shares from share-based compensation plans		890		776		758		613
	Diluted weighted-average shares outstanding		44,704		43,707		44,580		43,485
	Diluted earnings per share	$	0.04	$	0.08	$	0.35	$	0.41

Fair_Value_Measurements_Additi

Fair Value Measurements - Additional Information (Detail) (Money Market Funds [Member], USD $)	Aug. 02, 2014	Feb. 01, 2014	Aug. 03, 2013
In Millions, unless otherwise specified
Money Market Funds [Member]	'	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'	'
Fair value of cash and cash equivalents	$41.20	$56.20	$36.20

Revolving_Credit_Agreement_Add

Revolving Credit Agreement - Additional Information (Detail) (USD $)	6 Months Ended
In Millions, unless otherwise specified	Aug. 02, 2014	Feb. 01, 2014	Aug. 03, 2013	Oct. 28, 2011
				Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]	'	'	'	'
Credit facility maximum borrowing capacity	$100	'	'	$100
Credit facility maximum borrowing capacity	'	'	'	150
Credit facility agreement expiration date	28-Feb-17	'	'	'
Credit facility remaining borrowing capacity	93.4	'	'	'
Eligible credit card receivables and inventories less reserves, percentage	90.00%	'	'	'
Letters of credit, amount outstanding	6.6	'	'	'
Direct borrowings	$0	$0	$0	'

Shareholders_Equity_Additional

Shareholders' Equity - Additional Information (Detail) (USD $)	6 Months Ended
In Millions, except Share data, unless otherwise specified	Aug. 02, 2014	Aug. 03, 2013
Schedule of Shareholders' Equity [Line Items]	'	'
Repurchase of shares	222,494	10,003
Repurchase shares value	$2.80	$0.10
Number of shares authorized to be repurchased	580,697	'
Share Purchased on Open Market [Member]	'	'
Schedule of Shareholders' Equity [Line Items]	'	'
Repurchase of shares	103,352	'

Earnings_Per_Share_Basic_and_D

Earnings Per Share - Basic and Diluted Income Per Common Share (Detail) (USD $)	3 Months Ended		6 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Aug. 02, 2014	Aug. 03, 2013	Aug. 02, 2014	Aug. 03, 2013
Basic Earnings Per Common Share:	'	'	'	'
Net income	$1,737	$3,414	$15,812	$18,106
Income allocated to participating securities	24	96	309	464
Net income available to common shareholders	1,713	3,318	15,503	17,642
Basic weighted-average shares outstanding	43,814	42,931	43,822	42,872
Basic earnings per share	$0.04	$0.08	$0.35	$0.41
Diluted Earnings Per Common Share:	'	'	'	'
Net income	1,737	3,414	15,812	18,106
Income allocated to participating securities	24	95	306	459
Net income available to common shareholders	$1,713	$3,319	$15,506	$17,647
Basic weighted-average shares outstanding	43,814	42,931	43,822	42,872
Incremental shares from share-based compensation plans	890	776	758	613
Diluted weighted-average shares outstanding	44,704	43,707	44,580	43,485
Diluted earnings per share	$0.04	$0.08	$0.35	$0.41

Earnings_Per_Share_Additional_

Earnings Per Share - Additional Information (Detail)	3 Months Ended		6 Months Ended
In Millions, unless otherwise specified	Aug. 02, 2014	Aug. 03, 2013	Aug. 02, 2014	Aug. 03, 2013
Earnings Per Share [Abstract]	'	'	'	'
Weighted average common stock equivalents	0.3	0.1	0.2	0.6