Stein Mart, Inc. Provides COVID-19 Business Update
March 31 2020 - 12:15PM
Stein Mart, Inc. (NASDAQ: SMRT) today provided an update on actions
it is taking, following its initial March 18, 2020 announcement
related to the COVID-19 pandemic.
Based on the latest guidance from federal, state and local
government and health authorities, and in the interest of the
health and safety of its customers and associates, the company is
extending the temporary closure of all stores beyond the previously
announced March 31 date. As the situation continues to evolve
rapidly, Stein Mart is not currently able to predict when the
stores will reopen.
Stein Mart also announced it is implementing significant actions
to mitigate the ongoing impact of COVID-19 on its cash flow to
protect its business and associates for the long-term. These
actions include furloughing most store associates and a significant
number of associates in its supply chain network and corporate
offices.
In addition, the Company is temporarily reducing the salaries of
executive management by 20 percent and associates not furloughed by
a lower rate, and the Board of Directors has suspended its
compensation. Stein Mart is also working with their vendors and
landlords to negotiate temporary terms.
“The decision to furlough our associates was extremely difficult
but required to manage through this unprecedented business
interruption. Our furloughed associates will continue to receive
their benefits and we will bring them back as soon as possible,”
said Hunt Hawkins, Chief Executive Officer. “I’d like to thank our
customers, associates and business partners for their support and
patience as we continue to navigate these uncertain times.”
Stein Mart will continue to monitor this ongoing situation and
assess recommendations from governmental and health authorities to
determine when its stores will reopen. The Company remains open to
serve customers through its online store at SteinMart.com.
About Stein Mart Stein Mart, Inc. is a national specialty
omni off-price retailer offering designer and name-brand fashion
apparel for him and for her, home décor, accessories and shoes at
everyday discount prices. Stein Mart provides real value
that customers love every day. The company operates 281 stores
across 30 states. For more information, please
visit www.SteinMart.com.
Cautionary Statement Regarding Forward-Looking Statements
Certain 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: the occurrence of any
event, change or other circumstances that could give rise to the
termination of the merger agreement, the inability to obtain the
requisite shareholder approval for the proposed merger or the
failure to satisfy other conditions to completion of the proposed
merger, risks that the proposed merger disrupts current plans and
operations and the costs, fees, expenses and charges associated
with the merger, dependence on our ability to purchase merchandise
at competitive terms through relationships with our vendors and
their factors, consumer sensitivity to economic conditions and
world events, competition in the retail industry, changes in
fashion trends and consumer preferences, ability to implement our
strategic plans to sustain profitable growth, effectiveness of
advertising and marketing, capital availability and debt levels,
ability to negotiate acceptable lease terms with current and
potential landlords, ability to successfully implement strategies
to exit under-performing stores, extreme and/or unseasonable
weather conditions, adequate sources of merchandise at acceptable
prices, dependence on certain key personnel and ability to attract
and retain qualified employees, increases in the cost of
compensation and employee benefits, impacts of seasonality,
disruption of the Company’s distribution process, dependence on
imported merchandise, information technology failures, data
security breaches, single supplier for shoe department, single
provider for Ecommerce website, acts of terrorism, loss of business
or supply chain disruptions caused by the coronavirus (COVID-19),
ability to adapt to new regulatory compliance and disclosure
obligations, material weaknesses in internal control over financial
reporting and other risks and uncertainties described in the
Company’s filings with the SEC.
Contact:Linda L. TasseffDirector of External Communications and
Investor Relationsltasseff@steinmart.com904-858-2639
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