Stein Mart, Inc. Receives NASDAQ Notice Related to Late Filings

Stein Mart, Inc. Receives NASDAQ Notice Related to Late Filings

JACKSONVILLE, Fla., March 7, 2013 (GLOBE NEWSWIRE) -- Stein Mart, Inc.
(Nasdaq:SMRT) today announced that on March 6, 2013 it received the
anticipated letter (the "Staff Determination Letter") from the Staff of The
NASDAQ Stock Market LLC notifying the Company that it has not regained
compliance with NASDAQ Listing Rule 5250(c)(1) (the "Rule"), the continued
listing requirement to timely file all required periodic reports with the
Securities and Exchange Commission (the "SEC"), and therefore, that its common
stock would be subject to delisting unless the Company timely requests a
hearing before a NASDAQ Listing Qualifications Panel (the "Panel").

The Company plans to timely request a hearing before the Panel. At the
hearing, the Company will present its plan for regaining compliance with the
Rule, and request continued listing pending its return to compliance. The
hearing request will result in an automatic stay of delisting until at least
March 28, 2013. Concurrent with the hearing request, the Company will ask the
Panel to extend the stay until the conclusion of the hearing process. The
Panel has the discretion to grant the Company an extension of time within
which to regain compliance with the Rule for a period not to exceed 360 days
from the original due date, or September 1, 2013. Notwithstanding, there can
be no assurance that the Panel will grant the Company's request for continued
listing.

As reported on September 13, 2012 and December 11, 2012, the Company is not in
compliance with the Rule because it did not timely file its Quarterly Report
on Form 10-Q for the second quarter ended July 28, 2012 or the third quarter
ended October 27, 2012 (the "Delinquent Filings"). As also previously
announced on November 15, 2012, NASDAQ granted the Company an exception until
March 5, 2013 to file the Delinquent Filings and regain compliance with the
Rule.

The Company has been unable to file its Delinquent Filings by March 5, 2013
because it is still in the process of restating previously issued financial
statements due to the need to test and audit prior results, as well as
evaluate control implications related to the restatement. See below for an
update on the restatement process.

Restatement Update

The Company expects to restate previously issued financial statements for
fiscal years 2010 and 2011 and its quarterly data for the first quarter of
2012 and all quarters in 2011, as well as selected consolidated financial data
for the years 2008 through 2011, in its Annual Report on Form 10-K for the
fiscal year ended February 2, 2013.The Company expects to restate previously
issued financial statements for the first quarters of 2011 and 2012 in a Form
10-Q/A for the first quarter of 2012 and for the second and third quarters of
2011 as part of Form 10-Q's for the second and third quarters of 2012.

As reported on November 9, 2012, the Company indicated that it would restate
its financial statements for fiscal years 2009, 2010 and 2011 in an amended
Form 10-K/A for the fiscal year ended January 28, 2012, as well as quarterly
data for the quarters in 2010 and 2011.As the Company's financial statements
for the fiscal year ended February 2, 2013 will soon be available, the Company
has determined that the most clear presentation would be to include the
restated financial statements in the fiscal 2012 Form 10-K rather than amend
its fiscal 2011 annual report, which would have required restated financial
statements for fiscal 2009 and all 2010 quarters.

The two individual errors reported on November 9, 2012 included the Company's
accounting for (1) certain markdowns as promotional instead of permanent and
(2) lessor reimbursements for leasehold improvement construction costs as a
reduction in fixed assets instead of recording as deferred rent credits.The
estimated impacts previously reported for these items through the second
quarter ended July 28, 2012 have not materially changed.

A third item related to the accrual of vacation earned but not taken has been
subsequently identified as requiring correction.The Company's long-standing
vacation policy calls for vacation to be earned in one year but taken in the
next.There has never been an accrual for vacation earned but not taken.This
was based on the mistaken belief that vacation was earned and taken in the
same year because any vacation not taken at the end of the year was not able
to be carried over.The vacation accrual required at July 28, 2012 is
estimated to be $7 million before tax.The estimated impact of this error on
selling, general and administrative expense varies from an overstatement of
less than $0.3 million in 2011 and 2012 to an understatement of less than $0.5
million in 2010 (all amounts before tax).

The Company is in the process of completing its analysis and audits for these
areas so all amounts are preliminary estimates and subject to
change.Additionally, until the restatement process is complete, additional
information may become available which could cause the Company's current
estimates to change.The effects on certain reported periods are material, and
the impact of the individual errors will be disclosed in more detail in the
Company's restated financial statements.

About Stein Mart

Stein Mart stores offer the fashion merchandise, service and presentation of a
better department or specialty store, at prices competitive with off-price
retail chains.Currently with locations from California to Massachusetts,
Stein Mart's focused assortment of merchandise features current season,
moderate to better fashion apparel for women and men, as well as accessories,
shoes and home fashions.

The Stein Mart, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=9827

FORWARD-LOOKING STATEMENTS>>>>>>>>>Except for historical information, the
matters discussed herein are "forward-looking statements" within the meaning
of the federal securities laws and regulations.Forward-looking statements
include statements regarding the Company's intent to restate its prior
financial statements, the estimated adjustments of the restated financials,
and the expected timing of filing the restated financial reports.There can be
no assurance that the Company's management, audit committee or independent
registered public accounting firm will not reach conclusions regarding the
impact of the restatement that are different from management's preliminary
estimates or identify additional issues or other considerations in connection
with the restatement and the audit and review process or that these issues
will not require additional adjustments to the Company's prior financial
results.All of these statements are subject to risks and uncertainties which
may cause actual results to differ materially from those stated here.These
risks and uncertainties include, but are not limited to, the risk that
additional information may arise from the oversight of the audit committee,
the risk that the process of preparing and auditing the financial statements
or other subsequent events would require the Company to make additional
adjustments, the time and effort required to complete the restatement of the
financial reports, the ramifications of the Company's potential inability to
timely file required reports, including potential delisting of the Company's
common stock on NASDAQ and the risk of litigation or governmental
investigations or proceedings relating to such matters.Other risks are
described more fully in the Company's filings with the Securities and Exchange
Commission.Forward-looking statements reflect management's analysis as of the
date of this current report.The Company does not undertake to revise these
statements to reflect subsequent developments.

SMRT-F

        Additional information about Stein Mart, Inc. can be found at
                              www.steinmart.com

CONTACT: For more information:
         Linda L. Tasseff
         Director, Investor Relations
         (904) 858-2639
         ltasseff@steinmart.com

Stein Mart, Inc. Logo
 
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