Stein Mart Pays $800,000 SEC Penalty For Overstating Inventory's Value
A national department store chain based in Jacksonville has been hit with a fine from the federal government.
Stein Mart received the $800,000 penalty after the Securities and Exchange Commission said the company improperly valued its inventory.
In a nutshell, the store would permanently put items on sale, but continue to report the higher, pre-sale value of the goods. That led the company to misstate its pre-tax income. It had to restate those figures from 2010 to 2012, when the issue was discovered.
The company said it has put aside money to pay the fine, so it won't affect this quarter's earnings.