Retailer Saks Inc. (SKS) has recorded a wider second-quarter net loss of $19.6 million, or $0.13 per share, versus a $12.3 million, or $0.08 per share loss last year. The latest results included after-tax charges of $5.2 million, consisting of $1.1 million of store closing costs, a $1.6 million non-cash pension settlement charge on the payment of excess lump-sum distributions, and $2.5 million of expenses related to the pending merger with HBC.
Excluding items, the firm said it would have posted a net loss of $14.4 million, or $0.10 per share, for the recent quarter. On average, 13 analysts polled by Thomson Reuters expected loss per share of $0.08 for the quarter. Analysts' estimates typically exclude one-time items.
Quarterly net sales totaled $707.84 million, compared with $704.1 million a year earlier, up by 0.5%. Analysts estimated revenues of $732.55 million for the quarter. Saks' Chief Executive noted, "Our comparable store sales increases of 1.5% in the second quarter and 3.8% for the six months were on top of 4.7% increases in both the second quarter and first six months of last year. Several merchandise categories showed sales strength during the second quarter, including women's contemporary and advanced designer apparel; dresses; women's shoes; handbags; fragrances; children's apparel; and men's accessories, shoes, and contemporary apparel."
Further, the company added that it would not hold its regularly scheduled conference call for the investment community and has discontinued providing forward-looking guidance, owing to the pending transaction with Hudson's Bay Co. (HBC.TO).
by RTT Staff Writer
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