Saks Q3 Sales Edge Up

Retailer Saks Incorporated reported net income of $0.2 million for the third quarter and a net income of $24.6 million for the nine month period. The quarter included a net after-tax gain of $5.5 million, compared to a loss of $30.4 million for the prior year third quarter, which included after-tax charges of $20 million.

The company on Tuesday announced consolidated comparable store sales increased 2.7 percent for the third quarter ended October, 29.  However, total revenues declined 11.2 percent for the quarter, reflecting the sale of the group’s Proffit’s/McRae’s business.

The nine months included a net after-tax gain of $64.0 million.

The company recorded a loss of $35.6 million for the prior year nine months ended October 30, 2004, which were primarily related to asset impairments and the disposition of assets associated with Saks Fifth Avenue Enterprises (SFAE) store closings.

For the current year nine months, consolidated comparable store sales grew 2.2 percent and total sales declined 4.4 percent.

R. Brad Martin, chairman and chief executive officer of Saks, said, “The Company's operating performance for the quarter was solid." He further noted, "The Company has made substantial progress on many fronts this year.”

For the full year, management expects net capital spending will total approximately $200 to $225 million. The major components for this spending include approximately: (i) $70 million for SFAE expansions and remodels, (ii) $30 million for Sacks Department Store Group (SDSG) new and replacement stores, (iii) $15 for SDSG expansions and remodels, and (iv) the balance for merchandising, maintenance capital, and information technology.

Saks Incorporated operates SFAE, which consists of 55 Saks Fifth Avenue stores, 50 Saks Off 5th stores, and saks.com. The company also operates SDSG with 40 Parisian stores; 142 Younkers, Herberger's Carson Pirie Scott, Bergner's, and Boston Store stores (known collectively as the Northern Department Store Group), and 56 Club Libby Lu specialty stores.