Stein Mart, Joe’s Face New Nasdaq Issues

Retailer is late with financial filings, vendors stock price below $1.

Joe's Jeans

Stein Mart Inc. and Joe’s Jeans Inc. are both facing noncompliance complaints with the Nasdaq Stock Market — Stein Mart’s second in as many months and Joe’s third in just more than three years.

If not resolved within the time frames indicated, the issues could result in the company’s being delisted by the exchange. They do not affect either company’s current trading status.

Jacksonville, Fla.-based Stein Mart, which reported last month that it would restate financial results for three years beginning in 2009, as well as those for the first quarter of the current fiscal year, said Tuesday that Nasdaq had sent it a letter of noncompliance because it had failed to file its financial results for the third quarter ended Oct. 27.

Last month, it received a similar notice from Nasdaq about its second-quarter results but was granted an exception by the exchange that allows it to remain in compliance, providing the second-quarter results and all other delinquent filings are received by March 5, 180 days from the due date for the second-quarter numbers. That deadline ostensibly would apply to the third-quarter figures as well.

Stein Mart reiterated that it is in the process of restating the figures for the relevant periods and “evaluating the control implications related to the restatement” and won’t be able to submit third-quarter data and file the necessary Form 10-Q for the period until the review process is completed.

Stein Mart shares Tuesday fell 14 cents, or 1.9 percent, to $7.28.

For Joe’s Jeans, the challenge — for the third time since it first faced compliance questions in September 2009 — is a stock price that has failed to remain above the $1 minimum required by Nasdaq for 30 consecutive trading days. Regaining compliance requires a price of $1 or more for 10 consecutive trading days.

Joe’s shares Tuesday closed at 94 cents, down 1 cents, or 0.9 percent, and haven’t closed above $1 since Oct. 22, one week after it surprised analysts by reversing a year-ago loss with a third-quarter profit of $1.4 million, or 2 cents a diluted share, on a 25.5 percent increase in revenues to $30.3 million. Analysts had expected a 1-cent loss for the period.

Los Angeles-based Joe’s has until June 5 — six months after receipt of the notification letter — to regain compliance with the $1 minimum price requirement and said it could be eligible for additional time to meet the Nasdaq standard.

Joe’s faced the same problem in 2009, and again last year, but regained compliance on both occasions.