Stein Mart, Inc. announced that it has instituted cost reductions expected to total savings of approximately $10 million (pre-tax) in 2018 including the elimination of approximately 10 percent of its corporate office headcount. These actions are part of the Company's ongoing efforts to control costs and simplify its business processes in this highly competitive retail environment. Most of the other cost reductions are also at the corporate headquarters. Today's announcement is in addition to tight expense controls and other steps the Company has taken this year to strengthen its financial position, including: •Lowering inventories by 15 percent •Reducing capital expenditures by $22 million over the prior year •Suspending the quarterly dividend ($14 million annual savings). Click Read More below for additional information.
Gap Inc. (NYSE: GPS) today reported fourth quarter and fiscal year 2014 results and provided guidance for fiscal year 2015. For the fourth quarter of fiscal year 2014, the company’s diluted earnings per share increased 10 percent to $0.75 per share. For the 2014 fiscal year, the company’s diluted earnings per share increased 5 percent to $2.87 per share. Excluding the year-over-year impact from foreign exchange, the company’s diluted earnings per share increased approximately 20 percent for the fourth quarter of fiscal year 2014 and approximately 10 percent for fiscal year 2014.
“Looking ahead at 2015, we will continue executing our global growth strategy, bringing new digital capabilities to life and making the shifts necessary to consistently deliver the brand-right, emotional product that our customers expect from all of our brands,” said Art Peck, chief executive officer, Gap Inc. “I’ve moved quickly to assemble a talented team of leaders who share my sense of urgency and, together, we’re focused and ready for the year ahead.”
Fourth Quarter Results
Net sales were up 3 percent to $4.71 billion, compared with $4.58 billion for the fourth quarter of fiscal year 2013. The company’s fourth quarter comparable sales were positive 2 percent versus positive 1 percent last year.
Net income for the fourth quarter of fiscal year 2014 was $319 million. Earnings per share increased 10 percent to $0.75 per share on a diluted basis, compared with $0.68 per share during the fourth quarter last year.
Fiscal Year 2014 Results
For fiscal year 2014, net sales increased 2 percent to $16.44 billion, compared with net sales of $16.15 billion for the 2013 fiscal year, driven by strong performance at Old Navy. On a constant currency basis, net sales increased 3 percent for fiscal year 2014.
Net income for fiscal year 2014 was $1.26 billion, or $2.87 per share on a diluted basis, compared with $2.74 per share on a diluted basis for the 2013 fiscal year.