Luxury retail chain Saks, Inc. (SKS) reported Tuesday a profit for the first quarter that decreased from last year, reflecting higher charges and lower operating margins. However, comparable store sales grew 5.9 percent from last year. Adjusted earnings per share matched analysts' expectations, while quarterly revenues topped their estimates. The company also expects comparable-store sales to be modestly higher growth in the second half of fiscal 2013 than in the second quarter.
"I am pleased with our first quarter comparable store sales growth of 5.9%, which was on top of a solid 4.8% increase in last year's first quarter. I am also pleased that we maintained a 44.4% gross margin rate, which was flat with last year, in an increasingly promotional environment," Chairman and CEO Stephen Sadove said in a statement.
The New York-based operator of 42 Saks Fifth Avenue stores, 66 Saks Fifth Avenue OFF 5TH stores, and the website saks.com reported net income of $20.0 million or $0.13 per share for the first quarter, lower than $32.15 million or $0.18 per share in the prior-year quarter.
Excluding one-time items, adjusted earnings for the quarter was $30.1 million or $0.19 per share, compared to $32.7 million or $0.19 per share in the year-ago quarter.
On average, 13 analysts polled by Thomson Reuters expected the company to report earnings of $0.19 per share for the quarter. Analysts' estimates typically exclude special items.
Net sales for the quarter grew 5.3 percent to $793.20 million from $753.61 million in the same quarter last year, and topped eleven Wall Street analysts' consensus estimate of $778.53 million.
Comparable store sales increased 5.9 percent for the quarter on top of a solid 4.8 percent increase last year.
Operating margin for the quarter contracted 160 basis points to 7.0 percent from last year's at 8.6 percent SG&A expenses, as a percent of sales, increased 150 basis points, with gross margin remaining flat.
The company noted that it experienced deleverage in the quarter as anticipated, primarily related to incremental expenses to support its omni-channel and Project Evolution (technology) initiatives as well as additional marketing expenses targeted to maximize omni-channel revenues.
Consolidated inventories stood at $856.4 million at the end of the first quarter, a 7.9 percent increase over the prior year. Inventories also increased 7.9 percent on a comparable stores basis.
Looking ahead, the company anticipates comparable store sales growth of 4 to 6 percent for the balance of the year, with modestly higher growth in the second half of fiscal 2013 than in the second quarter.
The company also expects comparable store inventory levels to be up 4 to 5 percent throughout the balance of the year.
SKS closed Monday's regular trading session at $12.28, up $0.50 on a volume of 3.98 million shares.
For comments and feedback contact: editorial@rttnews.com
Business News
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.