Current Report

STEIN MART, INC. REPORTS 3Q AND YEAR-TO-DATE 2007 FINANCIAL RESULTS

JACKSONVILLE, FL – Stein Mart, Inc. (Nasdaq: SMRT) today announced financial results for its third quarter and first nine months ended November 3, 2007.

Note: the 53rd week in fiscal 2006 created a timing shift in the 4-5-4 calendar for fiscal 2007, resulting in a one-week difference between Stein Mart’s fiscal reporting periods and comparable store sales reporting periods. This timing shift positively impacted total net sales for the third quarter of 2007 and for the first nine months of the year.

Third Quarter of 2007

For the 13-week third quarter of 2007, the Company incurred a net loss of $2.7 million or $(0.06) per diluted share as compared to net income of $237,000 or $0.01 per diluted share in 2006. Net sales decreased 1.7 percent to $333.3 million for the 13 weeks ended November 3, 2007 from $339.2 million for the 13 weeks ended October 28, 2006. Comparable store sales for the 13 weeks ended November 3, 2007 decreased 6.3 percent from the 13 weeks ended November 4, 2006.

Gross profit declined to $86.2 million or 25.9 percent of sales in the third quarter of 2007 compared to $89.3 million or 26.3 percent of sales in the same period last year. The gross profit rate decreased primarily due to a lack of leverage on lower sales, as increased mark-up was offset by higher markdowns.

Selling, general and administrative (SG&A) expenses were $97.2 million or 29.2 percent of sales as compared to $92.6 million or 27.3 percent of sales during the same period last year. The SG&A rate was higher due to a lack of leverage on lower sales, and reflected increases in advertising and costs related to the transition of the president/CEO position.

First Nine Months of 2007

For the first nine months of 2007, the Company earned $7.6 million or $0.18 per diluted share as compared to net income of $16.1 million or $0.37 per diluted share in 2006. Net sales were $1.04 billion for the 39-week period ending November 3, 2007, which were flat compared to the same period last year. Comparable store sales for the 39 weeks ended November 3, 2007 decreased 3.1 percent from the 39 weeks ended November 4, 2006.

Gross profit declined to $277.3 million or 26.7 percent of sales in the first nine months of 2007 compared to $280.9 million or 27.0 percent of sales in the same period last year. Higher mark-up was offset by increased markdowns, and the gross profit rate decreased due to a lack of sales leverage and increased buying costs, primarily from share-based compensation.

Selling, general and administrative (SG&A) expenses were $282.3 million or 27.1 percent of sales as compared to $268.0 million or 25.8 percent of sales during the same period last year. The SG&A rate was higher due to a lack of sales leverage, and reflected increases in advertising, store operating expenses, depreciation, share-based compensation and costs related to the transition of the president/CEO position.

“We were unable to overcome a deteriorating macro environment, record warm temperatures, and a highly promotional competitive landscape that impacted our customer this fall,” said Linda M. Farthing, president and chief executive officer of Stein Mart, Inc. “Despite substantial markdowns and additional advertising, our offering failed to generate sufficient sales in the quarter and the resulting loss was extremely disappointing.”

Guidance for Fourth Quarter 2007

Management expects a comparable stores sales decrease of approximately ten percent for the current November month ending December 1, 2007, and if this trend continues, comparable store sales would also decline approximately ten percent for the fourth quarter. In addition, the timing shift associated with the 4-5-4 calendar in 2007 and the 53rd week in 2006 will have a negative impact of approximately $29 million on total net sales for the fourth quarter of 2007 in comparison to total net sales for the fourth quarter of 2006.

Given this lowered sales outlook, escalating competitive pressure, and the prospect of extremely aggressive markdowns to move merchandise on lower than planned sales, the Company would expect an operating loss of approximately $(0.15) per diluted share for the fourth quarter ending February 2, 2008.

“The customer clearly has an appetite for value pricing right now, and we have redoubled our efforts to provide and promote exceptional savings throughout the store,” Farthing continued. “The negative impact on gross margin will be significant in the fourth quarter, but these actions are necessary in order to exit the year without the burden of prior season merchandise. Additionally, we are actively reviewing all aspects of our business for profit opportunities and expense savings in order to improve our performance in the future.”

Store Network

Eight new stores opened in the third quarter; one store was relocated and two stores were closed, bringing the chain-wide total to 276 at the end of the quarter as compared to 265 at the same time last year.

The Company completed its 2007 store-opening program with four stores that opened in November, bringing to 14 the number of new stores opened during 2007. For the year, a total of two stores closed and two were relocated. As of today, the Company operates 280 stores, a 4.5% increase in store count over the 268 stores open at the end of 2006.

“After careful review, we have decided to focus our efforts on the productivity of the existing store network, and accordingly, have scaled back our new store openings,” noted Farthing. “While this is still a work in progress, we plan to open significantly fewer stores in 2008 than we opened in 2007.”

Dividend and Stock Repurchase Update

The Board of Directors has declared a quarterly dividend of $0.0625 per common share payable on December 21, 2007 to stockholders of record at the close of business on December 7, 2007.

In the third quarter of 2007, the Company repurchased 1.2 million shares of stock at a cost of $10.7 million. So far this year, the Company has repurchased a total of 2.4 million shares of stock at a cost of $26.9 million.

Conference Call with Management

Management will discuss these financial results and the Company’s perspective on the fall season in a conference call with financial analysts today (November 29, 2007) at 11:00 a.m. ET. The call may be heard on the investor relations portion of Stein Mart’s website at http://ir.steinmart.com , and a recording of the call will remain on the website until December 7, 2007.

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 New York, Stein Mart’s focused assortment of merchandise features moderate to designer brand-name apparel for women and men, as well as accessories, gifts, linens and shoes.

SAFE HARBOR STATEMENT>>>>>>> Except for historical information contained herein, the statements in this release may be forward-looking, and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The Company does not assume any obligation to update or revise any forward-looking statements even if experience or future changes make it clear that projected results expressed or implied will not be realized. Forward-looking statements involve known and unknown risks and uncertainties that may cause Stein Mart’s actual results in future periods to differ materially from forecasted or expected results. Those risks include, without limitation:

and the other risks and uncertainties described in the Company’s filings with the Securities and Exchange Commission.

SMRT-F

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

Stein Mart, Inc.

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