Stein Mart Inc. disclosed a number of accounting problems that will cause it to restate more than three years of results.
Shares of the Jacksonville, Fla.-based value retailer held up relatively well, falling 2.4 percent to $6.90 on Friday.
Stein Mart plans to restate its financial results beginning in fiscal 2009 through the first quarter of this year.
The retailer said it accounted for some price cuts as promotional, and therefore temporary, when they should have been logged as permanent, which would have reduced the value of unsold inventory and impacted the cost of goods sold.
Stein Mart believes the value of its inventory was overstated by about $3 million as of July 28. That would pull inventories at the end of the second quarter down to $240.8 million.
Also under review is the company’s accounting of leasehold improvement costs, which appears to have overstated the firm’s net assets by roughly $5 million. The adjustments will not impact the company’s cash balance, which at the end of July stood at $94.1 million, including cash and cash equivalents.
“The company is early in the process of its investigation and analysis of these areas so all amounts are preliminary estimates and subject to change,” Stein Mart said. “Until the restatement process is complete, additional information may become available which could cause the company’s current estimates to change.”
Avondale Partners analyst Mark Montagna kept his “market perform” rating on the stock and said accounting restatement “does not appear to have a meaningful impact to current year sales and earnings.”
Stein Mart delayed the filing of its quarterly statement with the Securities and Exchange Commission in September after running into problems when it replaced a merchandise information system.
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia
Azzedine Alaïa's “I-did-it-my-way” ethos stood out starkly at a time when brands are experimenting with consumer-facing fashion shows, coed formats and trans-seasonal collections – anything to perk up lackluster sales of ready-to-wear in an age of Insta-everything. “It’s not creation anymore. This becomes a purely industrial approach,” the late designer told WWD in an interview last year. “But anyway, the rhythm of collections is so stupid. It’s unsustainable. There are too many collections.” Read more about the iconic designer’s life and work on wwd.com, link in bio. #wwdfashion #azzedinealaia (📷: @WWD Archive, 1986) #alaia
Sneaker reselling app @goat’s latest exhibit, "The Greatest: New York," tells the story of New York's sneaker culture. To celebrate the exhibit, an intimate crowd gathered on Thursday night at the pop-up gallery space, located at Platform in Culver City, to hear guest speaker and illustrator @esymai talk about her own rise in streetwear and women in the business. "For me I'm just someone who is creative. I like to create things," said Chang. #wwdfashion
Azzedine Alaïa, one of the most iconic couturiers of the modern era whose body-con designs defined Eighties fashion, has died in Paris. The diminutive Tunisian-born designer, known for his structured knitted dresses with fitted waists and impeccably cut, figure-hugging second skin silhouettes was deeply admired by his peers, and counted supermodel Naomi Campbell - his adoptive daughter - among his inner circle, one of a gang of glamazons including Farida Khelfa, Carla Bruni and Stephanie Seymour who became ambassadors of his style. (📷: Alexandre Guirkinger) #wwdblast