As a percent of sales, SG&A expenses (excluding the certain items) were 28.8% in the second quarter this year compared to 27.1% in the prior year second quarter and 27.7% for the current year six months compared to 26.1% for the same period last year. As anticipated, the Company experienced deleverage in the quarter and six months primarily related to incremental expenses needed to support its omni-channel and Project Evolution (technology) initiatives and its planned launch of saksoff5th.com, as well as additional marketing expenses targeted to maximize omni-channel revenues. Additionally, the Company’s saks.com sales continued to outpace its store sales, and these online sales carry a higher level of SG&A expenses. As the saks.com sales penetration increases, it is creating some natural SG&A expense deleverage for the Company. Furthermore, weaker than expected second quarter comparable store sales caused additional deleverage.Excluding the aforementioned certain items, the Company’s operating loss was 3.4% of sales in the current year second quarter compared to an operating loss of 1.0% of sales in the prior year second quarter. Excluding the aforementioned certain items, the Company’s operating income was 2.4% of sales for the current year six months compared to operating income of 4.0% of sales in the prior year six month period.
Saks Incorporated Announces Results For The Second Quarter And Six Months Ended August 3, 2013
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