8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(D) OF THE

SECURITIES EXCHANGE ACT OF 1934

May 22, 2008

(Date of Report; Date of Earliest Event Reported)

STEIN MART, INC.

(Exact Name of Registrant as Specified in its Charter)

Florida	0-20052	64-0466198
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

1200 Riverplace Blvd., Jacksonville, Florida 32207

(Address of Principal Executive Offices Including Zip Code)

(904) 346-1500

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On May 22, 2008, Stein Mart, Inc. issued a press release, a copy of which is attached as Exhibit 99.1, that includes financial results for the quarterly period ended May 3, 2008.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS

(d) Exhibits

99.1 Press Release dated May 22, 2008.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	STEIN MART, INC.
	(Registrant)
Date: May 28, 2008	By:	/s/ James G. Delfs
		James G. Delfs
		Senior Vice President, Finance and Chief Financial Officer

EXHIBIT INDEX

99.1 Press Release dated May, 22 2008.

EX-99.1

Exhibit 99.1

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

May 22, 2008	For more information:
	Susan Datz Edelman
FOR IMMEDIATE RELEASE	Director, Stockholder Relations
	(904) 346-1506
	sedelman@steinmart.com

STEIN MART, INC. REPORTS 1Q’08 FINANCIAL RESULTS

JACKSONVILLE, FL –Stein Mart, Inc. (Nasdaq: SMRT) today announced financial results for its first quarter ended May 3, 2008.

First quarter results

For the first quarter of 2008, the Company earned $7.0 million or $0.17 per diluted share as compared to net income of $8.1 million or $0.18 per diluted share in 2007. As previously reported, net sales for the first quarter decreased 6.4 percent to $352.1 million from $376.1 million the previous year and comparable store sales decreased 9.3 percent from the first quarter of 2007.

Gross profit decreased to $97.7 million or 27.8 percent of net sales from $104.9 million or 27.9 percent of net sales in the same period last year. The gross profit rate was essentially flat, with increased occupancy costs offset by improved markup and decreased markdowns.

Selling, general and administrative (SG&A) expenses were $91.5 million or 26.0 percent of net sales as compared to $97.4 million or 25.9 percent of net sales during the same period last year. The SG&A rate was higher due to a lack of leverage on negative comparable store sales, but reflected a decrease of $5.9 million primarily from reduced advertising and corporate office expenses.

“Entering the period with lowered levels of inventory compared to last year and a focused expense discipline was instrumental in our first quarter performance, and we believe those efforts will continue to be critical as we move through the months ahead,” noted president and chief executive officer Linda M. Farthing. “While we have had some individual event success, the persistent trend of decreased sales absent promotional drivers is troubling, and we remain concerned about the consumer’s cautious mindset as we look out at the rest of the year.”

Farthing went on to say, “If these sales trends persist, we will have to take steeper markdowns in the second quarter in order to reach our goal of keeping inventories current. And while we were able to reduce expenditures in the first quarter, there will be less opportunity for savings in the second quarter.”

Other news

The Company continues to work on initiatives related to merchandising, expense control, inventory management and the in-store experience. A greater proportion of recognizable brands in the store and more opportunistic purchases are appearing on the sales floor. The reduction of SG&A expenses continues to be a priority, with a focus on non-merchandise procurement and other indirect spend categories. Using tools like a stronger customer relationship management program, strategies are being developed to deliver a stronger value message to potential and returning customers.

Store network

During the first quarter of 2008, five new stores (Westboro, MA; Phoenix, AZ; Indianapolis, IN; and Franklin Park and Holmdel, NJ) were opened and one was closed. At May 3, 2008, there were 284 stores in operation as compared to 270 at the same time last year.

Conference Call

Management will hold a conference call for investment analysts at 10 a.m. ET this morning to discuss these results. The call may be heard on the investor relations portion of the Company’s website at http://ir.steinmart.com. A replay of the presentation will be available on the website until May 30, 2008.

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 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:

• changes in consumer spending due to current events and/or general economic conditions

• the effectiveness of advertising, marketing and promotional strategies

• on-going competition from other retailers

• changing preferences in apparel

• unanticipated weather conditions and unseasonable weather

• adequate sources of merchandise at acceptable prices

• availability of new store sites at acceptable lease terms

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

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

• disruption of the Company’s distribution system

• acts of terrorism

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

###

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

Stein Mart, Inc.

Consolidated Balance Sheets

(Unaudited)

(In thousands, except for share data)

	May 3, 2008		February 2, 2008		May 5, 2007
ASSETS
Current assets:
Cash and cash equivalents	$	22,473	$	15,145	$	23,484
Trade and other receivables		11,493		12,372		10,172
Inventories		280,573		262,496		308,279
Income taxes receivable		10,060		14,103		—
Prepaid expenses and other current assets		15,309		13,985		17,151
Total current assets		339,908		318,101		359,086
Property and equipment, net		109,948		110,687		112,376
Other assets		33,535		31,751		28,633
Total assets	$	483,391	$	460,539	$	500,095
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	80,392	$	77,124	$	91,635
Accrued liabilities		73,774		75,508		73,093
Income taxes payable		—		—		9,108
Total current liabilities		154,166		152,632		173,836
Notes payable to banks		40,000		27,133		5,420
Other liabilities		28,864		24,085		24,359
Total liabilities		223,030		203,850		203,615
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; 42,078,878, 41,831,182 and 43,850,458 shares issued and outstanding, respectively		421		418		438
Additional paid-in capital		6,489		5,288		24,888
Retained earnings		253,451		250,983		271,154
Total stockholders’ equity		260,361		256,689		296,480
Total liabilities and stockholders’ equity	$	483,391	$	460,539	$	500,095

Stein Mart, Inc.

Consolidated Statements of Income

(Unaudited)

(In thousands, except per share amounts)

	13 Weeks Ended May 3, 2008			13 Weeks Ended May 5, 2007
Net sales	$	352,123		$	376,119
Cost of merchandise sold		254,377			271,209
Gross profit		97,746			104,910
Selling, general and administrative expenses		91,539			97,411
Other income, net		5,930			5,379
Income from operations		12,137			12,878
Interest (expense) income, net		(367	)		127
Income before income taxes		11,770			13,005
Provision for income taxes		4,772			4,893
Net income	$	6,998		$	8,112
Net income per share:
Basic	$	0.17		$	0.19
Diluted	$	0.17		$	0.18
Weighted-average shares outstanding:
Basic		41,251			43,240
Diluted		41,435			43,912

Stein Mart, Inc.

Consolidated Statements of Cash Flows

(Unaudited)

(In thousands)

	13 Weeks Ended May 3, 2008			13 Weeks Ended May 5, 2007
Cash flows from operating activities:
Net income	$	6,998		$	8,112
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization		6,497			6,365
Impairment of property and other assets		—			108
Store closing charges		111			55
Deferred income taxes		271			(1,092	)
Share-based compensation		1,258			2,300
Tax benefit from equity issuances		—			293
Excess tax benefits from share-based compensation		—			(267	)
Changes in assets and liabilities:
Trade and other receivables		879			(8	)
Inventories		(18,077	)		(17,336	)
Income taxes receivable		4,043			—
Prepaid expenses and other current assets		(1,729	)		(687	)
Other assets		(1,327	)		(2,410	)
Accounts payable		3,268			8,392
Accrued liabilities		(2,547	)		(4,938	)
Income taxes payable		—			(3,983	)
Other liabilities		264			2,005
Net cash used in operating activities		(91	)		(3,091	)
Cash flows from investing activities:
Capital expenditures		(5,448	)		(5,266	)
Purchases of short-term investments		—			(36,580	)
Sales of short-term investments		—			47,415
Net cash (used in) provided by investing activities		(5,448	)		5,569
Cash flows from financing activities:
Borrowings under notes payable to banks		242,212			7,420
Repayments of notes payable to banks		(229,345	)		(2,000	)
Cash dividends paid		—			(2,734	)
Excess tax benefits from share-based compensation		—			267
Proceeds from exercise of stock options		—			3,450
Repurchase of common stock		—			(2,957	)
Net cash provided by financing activities		12,867			3,446
Net increase in cash and cash equivalents		7,328			5,924
Cash and cash equivalents at beginning of year		15,145			17,560
Cash and cash equivalents at end of period	$	22,473		$	23,484