Retailer Saks Inc. (SKS) posted first-quarter net income of $20.0 million, or $0.13 per share, down from $32.15 million, or $0.18 per share in the year ago quarter.
The latest-quarter results included after-tax items totaling $10.1 million comprising $2.3 million of store closing costs and a $7.8 million non-cash loss on extinguishment of debt related to the Company's redemption of its $230 million 2% Convertible Senior Notes.
The prior year results included after-tax items totaling $0.6 million comprising $0.4 million of pre-opening costs associated with the 2012 opening of the Company's new Tennessee fulfillment center and $0.2 million of store closing expenses.
Excluding items, net income for the latest-quarter was $30.1 million, or $0.19 per share, compared to net income of $32.7 million, or $0.19 per share in the prior year quarter. 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 rose to $793.20 million from $753.61 million in the prior year quarter. Eleven analysts had consensus revenue estimate of $778.53 million for the quarter. The company reported 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.
Comparable store sales growth are expected in the 4% to 6% range for the balance of the year, with modestly higher growth in the second half of the fiscal year than in the second quarter.
Comparable store inventory levels are expected to be up in the 4% to 5% range throughout the balance of the year.
The Company has increased its anticipated 2013 SG&A expenses above original expectations, primarily due to two factors. First, the Company expects to incur approximately $5 million to $6 million of additional expenses related to Project Evolution. Second, the Company has accelerated the planned launch of OFF5TH.com into fall 2013 (from 2014 previously) and will incur approximately $5 million to $6 million of start-up and incremental operating expenses associated with this project.
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