The company said Thursday that improperly handled records related to a pending changeover in its electronic inventory system led the company to miss recording permanent markdowns.

Adjusting the quarter's results will reduce gross margin and inventory from what was reported for the quarter ended Oct. 29.

Correcting the record will increase the net loss previously released by $1.3 million to $1.6 million, or 3 cents to 4 cents per share.

Stein Mart had reported that it lost $1.8 million, or 4 cents per share. The reported results matched the average estimate from analysts, according to data provided by FactSet.

The company said correcting its records will delay filing its third-quarter financial results with the Securities and Exchange Commission.

The final results may differ from its current projections, Stein Mart said.

Stein Mart shares closed down 39 cents, or 5.8 percent, at $6.32. They were unchanged in aftermarket trading.