Stein Mart Is Having A Huge Thursday; Here's Why

Stein Mart, Inc. SMRT shares rose sharply Thursday after the company said same-store sales grew 6.6 percent.

Stein Mart changed hands recently near $16, up more than 12 percent.

Separately on Wednesday, the Jacksonville, Florida-based discount apparel retailer declared a $5 per share special dividend, and increased a revolving credit facility to $250 million, from $100 million.

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Borrowings under the new facility will be used primarily to pay for the special dividend, the company said.

Chief Executive Jay Stein said the dividend, payable February 27, "reflects [the company's] continued generation of strong cash flows and favorable access to the credit markets."

Stein Mart also revealed on Thursday that sales continued to build throughout its just-ended fourth quarter, "particularly as [they] didn't have a repeat of last year's severe weather events."

The company, slated to post full fourth quarter results on March 12, said total fourth quarter sales increased 7.3 percent.