Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jul. 30, 2016 | Aug. 29, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jul. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | SMRT | |
Entity Registrant Name | STEIN MART INC | |
Entity Central Index Key | 884,940 | |
Current Fiscal Year End Date | --01-28 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 46,902,126 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jul. 30, 2016 | Jan. 30, 2016 | Aug. 01, 2015 |
Current assets: | |||
Cash and cash equivalents | $ 11,765 | $ 11,830 | $ 11,620 |
Inventories | 279,691 | 293,608 | 277,243 |
Prepaid expenses and other current assets | 20,925 | 18,586 | 30,060 |
Total current assets | 312,381 | 324,024 | 318,923 |
Property and equipment, net of accumulated depreciation and amortization of $205,195, $190,952 and $178,654, respectively | 169,597 | 162,954 | 156,072 |
Other assets | 29,892 | 29,247 | 30,323 |
Total assets | 511,870 | 516,225 | 505,318 |
Current liabilities: | |||
Accounts payable | 98,185 | 105,569 | 122,699 |
Current portion of long-term debt | 10,000 | 10,000 | 9,167 |
Accrued expenses and other current liabilities | 68,411 | 71,571 | 64,661 |
Total current liabilities | 176,596 | 187,140 | 196,527 |
Long-term debt, net of current portion | 157,371 | 180,150 | 161,033 |
Deferred rent | 42,286 | 41,146 | 37,532 |
Other liabilities | 46,149 | 31,472 | 36,250 |
Total liabilities | 422,402 | 439,908 | 431,342 |
COMMITMENTS AND CONTINGENCIES | |||
Shareholders' equity: | |||
Preferred stock - $0.01 par value, 1,000,000 shares authorized; no shares issued or outstanding | |||
Common stock - $0.01 par value; 100,000,000 shares authorized; 46,848,195, 45,814,583 and 45,702,328 shares issued and outstanding, respectively | 468 | 458 | 457 |
Additional paid-in capital | 46,547 | 42,801 | 40,025 |
Retained earnings | 42,722 | 33,337 | 33,918 |
Accumulated other comprehensive loss | (269) | (279) | (424) |
Total shareholders' equity | 89,468 | 76,317 | 73,976 |
Total liabilities and shareholders' equity | $ 511,870 | $ 516,225 | $ 505,318 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jul. 30, 2016 | Jan. 30, 2016 | Aug. 01, 2015 |
Statement of Financial Position [Abstract] | |||
Accumulated depreciation and amortization | $ 205,195 | $ 190,952 | $ 178,654 |
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 | 46,848,195 | 45,814,583 | 45,702,328 |
Common stock, shares outstanding | 46,848,195 | 45,814,583 | 45,702,328 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 30, 2016 | Aug. 01, 2015 | Jul. 30, 2016 | Aug. 01, 2015 | |
Income Statement [Abstract] | ||||
Net sales | $ 319,761 | $ 311,583 | $ 675,473 | $ 665,104 |
Cost of merchandise sold | 230,322 | 222,648 | 477,142 | 467,789 |
Gross profit | 89,439 | 88,935 | 198,331 | 197,315 |
Selling, general and administrative expenses | 83,840 | 81,545 | 170,314 | 167,167 |
Operating income | 5,599 | 7,390 | 28,017 | 30,148 |
Interest expense, net | 883 | 807 | 1,849 | 1,493 |
Income before income taxes | 4,716 | 6,583 | 26,168 | 28,655 |
Income tax expense | 1,709 | 2,489 | 9,850 | 10,997 |
Net income | $ 3,007 | $ 4,094 | $ 16,318 | $ 17,658 |
Net income per share: | ||||
Basic | $ 0.07 | $ 0.09 | $ 0.36 | $ 0.39 |
Diluted | $ 0.06 | $ 0.09 | $ 0.35 | $ 0.38 |
Weighted-average shares outstanding: | ||||
Basic | 45,719 | 44,710 | 45,657 | 44,661 |
Diluted | 46,555 | 45,926 | 46,415 | 45,846 |
Dividends declared per common share | $ 0.075 | $ 0.075 | $ 0.150 | $ 5.150 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 30, 2016 | Aug. 01, 2015 | Jul. 30, 2016 | Aug. 01, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 3,007 | $ 4,094 | $ 16,318 | $ 17,658 |
Other comprehensive income, net of tax: | ||||
Amounts reclassified from accumulated other comprehensive income | 5 | 4 | 10 | 8 |
Comprehensive income | $ 3,012 | $ 4,098 | $ 16,328 | $ 17,666 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 30, 2016 | Aug. 01, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 16,318 | $ 17,658 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 15,611 | 14,534 |
Share-based compensation | 3,511 | 4,012 |
Store closing charges | 37 | 50 |
Loss on disposal of property and equipment | 10 | 43 |
Deferred income taxes | 978 | (1,781) |
Tax (expense) benefit from equity issuances | (196) | 3,729 |
Excess tax benefits from share-based compensation | (471) | (3,754) |
Changes in assets and liabilities: | ||
Inventories | 13,917 | 8,380 |
Prepaid expenses and other current assets | (2,339) | (10,626) |
Other assets | (708) | 976 |
Accounts payable | (7,763) | (7,721) |
Accrued expenses and other current liabilities | (1,207) | (6,183) |
Other liabilities | 14,949 | 8,051 |
Net cash provided by operating activities | 52,647 | 27,368 |
Cash flow from investing activity: | ||
Net acquisition of property and equipment | (23,939) | (19,786) |
Net cash used in investing activity | (23,939) | (19,786) |
Cash flows from financing activities: | ||
Proceeds from borrowings | 164,913 | 409,423 |
Repayments of debt | (187,713) | (239,223) |
Debt issuance costs | (380) | |
Cash dividends paid | (6,885) | (232,267) |
Excess tax benefits from share-based compensation | 471 | 3,754 |
Proceeds from exercise of stock options and other | 1,439 | 477 |
Repurchase of common stock | (998) | (3,060) |
Net cash used in financing activities | (28,773) | (61,276) |
Net decrease in cash and cash equivalents | (65) | (53,694) |
Cash and cash equivalents at beginning of year | 11,830 | 65,314 |
Cash and cash equivalents at end of period | 11,765 | 11,620 |
Supplemental disclosures of cash flow information: | ||
Income taxes paid | 11,789 | 8,555 |
Interest paid | 1,807 | 1,282 |
Purchases of property and equipment included in accounts payable, accrued expenses and other current liabilities at the end of the period | $ 2,473 | $ 4,374 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jul. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [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 and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In our opinion, all adjustments (consisting primarily of normal and recurring adjustments) considered necessary for a fair presentation 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. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended January 30, 2016, filed with the Securities and Exchange Commission (“SEC”) on April 11, 2016. As used herein, the terms “we,” “our,” “us” and “Stein Mart” refer to Stein Mart, Inc. and its wholly-owned subsidiaries. Recent Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-09 Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting In March 2016, the FASB issued ASU No. 2016-04, Liabilities-Extinguishments of Liabilities Subtopic 405-20 Recognition of Breakage for Certain Prepaid Stored-Value Products In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jul. 30, 2016 | |
Equity [Abstract] | |
Shareholders' Equity | 2. Shareholders’ Equity Dividends During the 26 weeks ended July 30, 2016, we paid two quarterly dividends of $0.075 per common share on April 15, 2016 and July 15, 2016. During the 26 weeks ended August 1, 2015, we paid two quarterly dividends of $0.075 per common share on April 17, 2015 and July 17, 2015. On February 4, 2015, we announced that our Board of Directors declared a special cash dividend of $5.00 per common share which was paid on February 27, 2015. As a result of the special cash dividend, all outstanding stock options and performance share awards were modified during 2015 so that they retained the same fair value. No incremental compensation expense resulted from these modifications. Stock Repurchase Plan During the 13 weeks ended July 30, 2016, we repurchased 7,376 shares of our common stock at a total cost of approximately $0.1 million. During the 13 weeks ended August 1, 2015, we repurchased 8,833 shares of our common stock at a total cost of approximately $0.1 million. During the 26 weeks ended July 30, 2016, we repurchased 150,658 shares of our common stock at a total cost of approximately $1.0 million. During the 26 weeks ended August 1, 2015, we repurchased 198,973 shares of our common stock at a total cost of approximately $3.1 million. Stock repurchases were for tax withholding amounts due on employee stock awards and during the first half of 2016 and 2015 included no shares purchased on the open market under our previously authorized stock repurchase plan. As of July 30, 2016, there are 570,216 shares that can be repurchased pursuant to the Board of Director’s current authorization. |
Earnings per Share
Earnings per Share | 6 Months Ended |
Jul. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings per Share | 3. Earnings per Share Our restricted stock awards granted in 2013 and prior contain non-forfeitable rights to dividends and, as such, are considered participating securities. Participating securities are to be included in the calculation of earnings per share under the two-class method. In applying the two-class method, income is allocated to both common stock shares and participating securities based on their respective weighted-average shares outstanding for the period. The following table presents the calculation of basic and diluted earnings per share (in thousands, except per share amounts): 13 Weeks Ended 13 Weeks Ended 26 Weeks Ended 26 Weeks Ended Basic Earnings Per Common Share: Net income $ 3,007 $ 4,094 $ 16,318 $ 17,658 Income allocated to participating securities 5 34 36 113 Net income available to common shareholders $ 3,002 $ 4,060 $ 16,282 $ 17,545 Basic weighted-average shares outstanding 45,719 44,710 45,657 44,661 Basic earnings per share $ 0.07 $ 0.09 $ 0.36 $ 0.39 Diluted Earnings Per Common Share: Net income $ 3,007 $ 4,094 $ 16,318 $ 17,658 Income allocated to participating securities 5 34 35 163 Net income available to common shareholders $ 3,002 $ 4,060 $ 16,283 $ 17,495 Basic weighted-average shares outstanding 45,719 44,710 45,657 44,661 Incremental shares from share-based compensation plans 836 1,216 758 1,185 Diluted weighted-average shares outstanding 46,555 45,926 46,415 45,846 Diluted earnings per share $ 0.06 $ 0.09 $ 0.35 $ 0.38 Options totaling approximately 2.5 million and 1.9 million shares of common stock that were outstanding during the 13 and 26 weeks ended July 30, 2016, respectively, were not included in the computation of diluted earnings per common share because their inclusion would have been anti-dilutive. Options totaling approximately 0.5 million and 0.2 million shares of common stock that were outstanding during the 13 and 26 weeks ended August 1, 2015, respectively, were not included in the computation of diluted earnings per common share because their inclusion would have been anti-dilutive. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jul. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 4. Commitments and Contingencies We are involved in various routine legal proceedings incidental to the conduct of our business. During the 13 weeks ended July 30, 2016 and August 1, 2015, we accrued $0.4 million and less than $0.1 million, respectively, and during the 26 weeks ended July 30, 2016 and August 1, 2015, we accrued $1.8 million and $0.1 million, respectively, for actual and anticipated legal settlements. While some of these matters could be material to our results of operations or cash flows for any particular period if an unfavorable outcome results, we do not believe that the ultimate resolution of currently pending legal proceedings, either individually or in the aggregate, will have a material adverse effect on our overall financial condition. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jul. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [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 and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In our opinion, all adjustments (consisting primarily of normal and recurring adjustments) considered necessary for a fair presentation 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. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended January 30, 2016, filed with the Securities and Exchange Commission (“SEC”) on April 11, 2016. As used herein, the terms “we,” “our,” “us” and “Stein Mart” refer to Stein Mart, Inc. and its wholly-owned subsidiaries. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-09 Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting In March 2016, the FASB issued ASU No. 2016-04, Liabilities-Extinguishments of Liabilities Subtopic 405-20 Recognition of Breakage for Certain Prepaid Stored-Value Products In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients |
Earnings per Share (Tables)
Earnings per Share (Tables) | 6 Months Ended |
Jul. 30, 2016 | |
Earnings Per Share [Abstract] | |
Calculation of Basic and Diluted Earning Per Share | The following table presents the calculation of basic and diluted earnings per share (in thousands, except per share amounts): 13 Weeks Ended 13 Weeks Ended 26 Weeks Ended 26 Weeks Ended Basic Earnings Per Common Share: Net income $ 3,007 $ 4,094 $ 16,318 $ 17,658 Income allocated to participating securities 5 34 36 113 Net income available to common shareholders $ 3,002 $ 4,060 $ 16,282 $ 17,545 Basic weighted-average shares outstanding 45,719 44,710 45,657 44,661 Basic earnings per share $ 0.07 $ 0.09 $ 0.36 $ 0.39 Diluted Earnings Per Common Share: Net income $ 3,007 $ 4,094 $ 16,318 $ 17,658 Income allocated to participating securities 5 34 35 163 Net income available to common shareholders $ 3,002 $ 4,060 $ 16,283 $ 17,495 Basic weighted-average shares outstanding 45,719 44,710 45,657 44,661 Incremental shares from share-based compensation plans 836 1,216 758 1,185 Diluted weighted-average shares outstanding 46,555 45,926 46,415 45,846 Diluted earnings per share $ 0.06 $ 0.09 $ 0.35 $ 0.38 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | Jul. 15, 2016 | Apr. 15, 2016 | Jul. 17, 2015 | Apr. 17, 2015 | Feb. 27, 2015 | Jul. 30, 2016 | Aug. 01, 2015 | Jul. 30, 2016 | Aug. 01, 2015 |
Schedule of Shareholders' Equity [Line Items] | |||||||||
Dividends declared and cash paid per share | $ 0.075 | $ 0.075 | $ 0.075 | $ 0.075 | $ 5 | ||||
Repurchase of shares | 7,376 | 8,833 | 150,658 | 198,973 | |||||
Repurchase shares value | $ 0.1 | $ 0.1 | $ 1 | $ 3.1 | |||||
Board of Directors [Member] | |||||||||
Schedule of Shareholders' Equity [Line Items] | |||||||||
Repurchase of shares | 0 | 0 | |||||||
Repurchase of shares, remaining | 570,216 | 570,216 |
Earnings Per Share - Calculatio
Earnings Per Share - Calculation of Basic and Diluted Earning Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 30, 2016 | Aug. 01, 2015 | Jul. 30, 2016 | Aug. 01, 2015 | |
Basic Earnings Per Common Share: | ||||
Net income | $ 3,007 | $ 4,094 | $ 16,318 | $ 17,658 |
Income allocated to participating securities | 5 | 34 | 36 | 113 |
Net income available to common shareholders | $ 3,002 | $ 4,060 | $ 16,282 | $ 17,545 |
Basic weighted-average shares outstanding | 45,719 | 44,710 | 45,657 | 44,661 |
Basic earnings per share | $ 0.07 | $ 0.09 | $ 0.36 | $ 0.39 |
Diluted Earnings Per Common Share: | ||||
Net income | $ 3,007 | $ 4,094 | $ 16,318 | $ 17,658 |
Income allocated to participating securities | 5 | 34 | 35 | 163 |
Net income available to common shareholders | $ 3,002 | $ 4,060 | $ 16,283 | $ 17,495 |
Basic weighted-average shares outstanding | 45,719 | 44,710 | 45,657 | 44,661 |
Incremental shares from share-based compensation plans | 836 | 1,216 | 758 | 1,185 |
Diluted weighted-average shares outstanding | 46,555 | 45,926 | 46,415 | 45,846 |
Diluted earnings per share | $ 0.06 | $ 0.09 | $ 0.35 | $ 0.38 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 30, 2016 | Aug. 01, 2015 | Jul. 30, 2016 | Aug. 01, 2015 | |
Earnings Per Share [Abstract] | ||||
Antidilutive options | 2.5 | 0.5 | 1.9 | 0.2 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jul. 30, 2016 | Aug. 01, 2015 | Jul. 30, 2016 | Aug. 01, 2015 | |
Contingencies And Commitments [Line Items] | ||||
Actual and anticipated legal settlements accrued | $ 400,000 | $ 1,800,000 | $ 100,000 | |
Maximum [Member] | ||||
Contingencies And Commitments [Line Items] | ||||
Actual and anticipated legal settlements accrued | $ 100,000 |