UPDATE 2-Stein Mart Q4 results top estimates; shares rise

* Q4 adj EPS $0.19 vs est $0.17

* Revenue falls 6 pct

* Says planning conservatively for 2010

* Shares up 13 pct (Adding conference call details, updates share movement)

March 18 (Reuters) - Discount retailer Stein Mart Inc (SMRT.O) posted an adjusted quarterly profit that beat analysts' estimates on lower costs, sending its shares up 13 percent. The company, however, said it was disappointed with its topline performance in February, hurt by lower clearance sales coupled with an unusually cold weather.

The retailer began 2010 with 45 percent fewer clearance units due to tight inventory controls, even as it maintained the same markdown levels this year compared with 2009, Chief Executive David Stovall said on a call with analysts.

Stein Mart, which sells goods at prices 20 percent to 60 percent below department stores and specialty shops, had aggressively discounted on older merchandises in the first quarter of 2009 to boost traffic into its stores.

The company expects capital expenditures for 2010 to more than triple to $30 million, of which $20 million will be used for the installation of a new merchandise information system and the rest to upgrade store fixtures.

The company also said it was encouraged by the initial customer response to spring merchandises and would continue to invest more of its marketing dollars in television in 2010.

COST CONTROLS AID Q4

For the fourth quarter ended Jan. 30, Stein Mart, which sells apparel, accessories, gifts, linens and shoes, earned $2.7 million, or 6 cents a share, compared with a loss of $56.2 million, or $1.35 a share, a year ago.

On an adjusted basis, it earned 19 cents a share.

Revenue fell 6 percent to $341.8 million.

Analysts on average were expecting earnings of 17 cents a share, before items, on revenue of $337.6 million.

Selling, general and administrative expenses fell 26 percent to $86.7 million in the quarter.

The company also employed an aggressive marketing strategy for the fourth quarter to drive traffic on key selling days like Black Friday, the day after U.S. Thanksgiving.

Jacksonville, Florida-based Stein Mart shares were up $1.10 at $10.55 Thursday afternoon trade on Nasdaq. They touched a high of $10.67 earlier in the day. (Reporting by Renju Jose in Bangalore; Editing by Ratul Ray Chaudhuri)