David Stovall Leading Stein Mart Out of Trouble

When David H. Stovall Jr. moved to Florida from North Carolina in December to become president and CEO of Stein Mart, he knew he was heading into uncharted waters. Sales at the Jacksonville-based fashion retailer had started to sink even before the recession battered the industry. In fiscal 2008, total sales fell 9%. In March, the company’s stock (Nasdaq-SMRT) plummeted below $2 a share.

In June, Stein Mart reported its first monthly increase in comparable-store sales in more than a year.

Less than a year later, Stovall seems to be navigating Stein Mart out of the storm. In June, the company reported a strong first-quarter profit and its first monthly increase in comparable-store sales in more than a year. Its stock rebounded to nearly $7 a share.

Stovall attributes the promising results to a combination of cost-cutting and new merchandizing strategies. The company says it is pushing great deals on fresher content. Stein Mart’s clothes “are moving to a younger attitude,” Stovall says. “Not younger in age, but younger in look.”

Stovall, who joined Stein Mart after more than 20 years with Charlotte-based Belk, says his predecessor, Linda M. Farthing, deserves credit for the initiatives. His role was to jump-start them.

David H. Stovall Jr.

In addition to expanding its offerings, the company cut costs to save some $50 million a year, including eliminating more than 200 jobs companywide. Stein Mart closed 10 stores in the past year and plans to close between 10 and 13 more this year. Of those, only six have been announced — none in Florida.

“Florida was our most significant-hit state in the past several years, and now we’re seeing a leveling out here,” says Stovall. “That’s not to say business is terrific, but there appears to be a stabilization.”

Does that mean the worst is over? Stovall chuckles. Make no mistake, he says, “these are still uncharted waters.”