Saks Profit Soars

Earnings beat targets.
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Department store operator

Saks

(SKS)

said earnings soared in the first quarter.

The company earned $81.5 million, or 60 cents a share, for the quarter ended April 29, compared with $16.2 million, or 11 cents a share, in the year-ago period. Adjusted for items, earnings were 10 cents a share in the most recent quarter. On that basis, analysts surveyed by Thomson First Call were expecting earnings of 9 cents a share.

First-quarter revenue fell 32.9% from a year ago to $1.04 billion, due to the sale of the Proffitt's and McRae's and Northern Department Store Group businesses. Analysts were expecting revenue of $923 million. Same store sales declined 1.9%.

For the full year the company expects capital spending of about $175 million to $200 million.

Gross profit in the quarter decreased 33.3% to $402.21 million while gross profit margin fell 25 basis points to 38.7%.

Revenue in Saks Department Store Group fell 56.5% to $367.5 million and in Saks Fifth Avenue Enterprises fell 4.7% to $672.3 million.

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