Stein Mart 2012 Annual Report Download - page 8

6
Stein Mart Credit Card holders (co-branded and private label cards) receive advance notice of sales events and special promotional offers
including Extra Savings Events which occur periodically throughout the year and provide incremental savings on purchases made with the
Stein Mart credit card during these events.
Stein Mart co-branded credit card holders also participate in the credit card rewards program, which provides for an incentive to
cardholders in the form of reward certificates based on their cumulative purchases made on the credit card.
We have an Internet site, www.steinmart.com, to promote Stein Mart’s fashion point of view, as well as provide information for customers
regarding store locations, brands, products and selected sales promotion activity. Visitors to the website may apply for the co-branded
credit card or private label credit card, sign up to be Preferred Customers, sign up for email notifications or purchase gift cards. Beginning
in mid to late 2013, we anticipate a relaunch of the internet site to sell merchandise.
COMPETITION
Our primary competitors are department and specialty stores, as well as conventional off-price retail chains. From our customer’s
perspective, we believe we differentiate ourselves from department stores and specialty stores due to our (i) everyday low pricing, (ii)
convenient locations in shopping centers, and (iii) assortments that are more edited than department stores and more varied than specialty
stores. We believe we differentiate ourselves from typical off-price retail chains by offering (i) primarily current-season first–quality
merchandise carried by better department or specialty stores, (ii) a stronger merchandising “statement,” consistently offering more depth of
color and size in individual stock-keeping units, (iii) merchandise presentation and customer service more comparable to upscale retailers
and (iv) competitive price levels.
DISTRIBUTION
We utilize a third-party logistics network (“supply chain”) to move product through third-party consolidation centers located in New Jersey,
Atlanta and Los Angeles to third-party store distribution centers (“DCs”) located in Atlanta, Dallas and Los Angeles. This supply chain
methodology enables us to aggregate merchandise from all vendors at the DCs where it is received and checked to ensure it is floor ready
for our stores. The DCs are automated and virtually all of our vendors are now electronic data interchange (“EDI”) capable so we are able
to cross-dock a high percentage of our receipts. Store deliveries are made by contract carriers to the stores once or twice a week
depending on location and store volume. We are in the process of transitioning from third-party operated store distribution centers to
company-operated store distribution centers beginning in the second quarter of fiscal 2013.
EMPLOYEES
As of February 2, 2013, our work force consisted of approximately 10,900 employees (5,000 40-hour equivalent employees). Each of our
stores employs an average of 40 persons. The number of employees fluctuates during the year based on the particular selling season.
SEASONALITY
Our business is seasonal. Sales and profitability are historically higher in the first and fourth quarters of the fiscal year, which include the
spring and holiday seasons.
TRADEMARKS
We own the federally registered trademark Stein Mart®, together with a number of other marks used in conjunction with our private label
merchandise program. Management believes that our trademarks are important, but with the exception of Stein Mart®, not critical to our
merchandising strategy.
AVAILABLE INFORMATION
Copies of our annual report on Form 10-K, proxy statement, quarterly reports on Form 10-Q, current reports on Form 8-K, and any
amendments to those filings are available free of charge on the investor relations portion of our website at http://ir.steinmart.com (click on
“SEC Filings”). Also available free of charge on the www.steinmart.com website (click on “About us”; click on “Corporate Governance”) are
the charters for the Audit Committee, the Compensation Committee, the Corporate Governance Committee, and the Strategic Planning
Committee, as well as the Code of Conduct and Corporate Governance Guidelines. Printed copies of these items are available free of
charge upon request by writing Stein Mart, Inc., 1200 Riverplace Boulevard, Jacksonville, FL 32207, Attention: Stockholder Relations.
ITEM 1A. RISK FACTORS
Our results of operations and financial condition can be adversely affected by numerous risks and uncertainties. In evaluating the
Company, the risks and uncertainties described below and the matters described in “Forward-Looking Statements” should be considered
carefully. Should any of these risks actually materialize, our business, financial condition, and future prospects could be negatively
impacted.