Stein Mart 2015 Annual Report Download - page 2

I want to begin my annual message by rst welcoming Dawn Robertson
who became our Chief Executive Ocer in March. While she has only
been with us a short time, the passion, energy and ability to lead our
company, that I saw when we started our discussions, have become
even more evident to me. Both Dawn and I understand that we have the
opportunity to evolve Stein Mart for the better. We both feel that many
things at Stein Mart are working well and that it is important that we stay
true to the values and culture that have led to our success.
Dawn joined us after we wrapped up 2015, a year in which sales started
very strong, but softened in the second half resulting in our rst quarterly
comp sales decrease in more than three years. Trac was impacted in
part by unseasonable weather which drove a more promotional fourth
quarter. Our 2015 earnings reect the lower second-half sales and
resulting higher markdowns.
As we begin 2016, our full focus needs to be on growing our sales – both in
our stores and online. Dawn is early in her assessment of our opportunities,
but initially sees areas where we can better execute, even where we already
do things well. Some of the 2016 sales-driving initiatives include:
Merchandising - In Ladies’ Boutique, we are expanding our assortment
with better brands, career and our Peck & Peck private label. We are
continuing to develop Women’s Special Sizes. For both men and women,
we are focusing on the athleisure trend by adding more performance and
relaxed wear. We are redeveloping our Men’s business including new
tailored clothing brands, growing our key brands and expanding gifts.
Lastly, we are refocusing our shoe assortment with more “Boutique”,
leisure and Men’s brands that better coordinate with our apparel.
Ecommerce - We are launching a newly designed online store this
summer which will have a better look and be easier to shop with
enhanced navigation, improved search and a simplied checkout.
Marketing - We are taking a fresh look at how to best connect with
our customers and drive trac to attract new customers to our brand.
We have engaged consumer focus groups to help guide us. We are
testing a change in our media mix and refreshing the look of our print and
digital advertising.
These important growth initiatives, along with store unit expansion and our
credit card program with improved economics under a new agreement,
support that single goal to increase sales. Earnings growth can only be
achieved through higher sales from comparable and new stores. I am really
looking forward to having Dawn here to lead our great team as we do this.
Jay Stein
Chairman of the Board
Dawn H. Robertson
Chief Executive Ocer
TO OUR SHAREHOLDERS
I am looking forward to the amazing
opportunity of serving as Chief Executive
Ocer of this successful retail company
of Stein Mart. Joining Stein Mart is a
privilege and I share Jay’s optimism for
our bright future.
Jay has been an incredible leader and
builder of this business mentoring
the entire leadership team and all our
associates through all the changes in
retail. We look forward to his ongoing
guidance and continued inspiration as
our Chairman.
I want you to be condent that I
celebrate the values and culture of
Stein Mart and will stay true to that
DNA. We are going to delight our
customers with great merchandise in
interesting and easy to shop stores,
which will make our shareholders
proud.
For the important second half of 2016
ahead, we will focus on growth of our
existing brands while adding exciting
new brands, with our customer always
at the center of our thinking. One of
the ways Stein Mart dierentiates itself
is in its uniqueness. As we generate
excitement at all our retails touch points
– online and in store – this will be an
incredible time for Stein Mart.
I appreciate the warm welcome I
have received and recognize that we
wouldn’t be where we are without the
contributions made by each and every
one of our team. I am condent that our
business will grow and increase in value.
Together, we can make Stein Mart an
even greater place to shop.