Saks Inc. Breaks Even in 3Q
November 28, 2005-- Home Textiles Today,
Picking up $10 million in insurance money for a New Orleans store damaged by Hurricane Katrina, Saks Inc. managed a break-even third quarter, recording a small profit of $225,000, compared with a year-before loss of $30.4 million, when the chain was hit by store closing costs during a sweeping overhaul of operations.
The insurance proceeds offset expenses of $4.5 million in asset impairment and costs stemming from the sale of Proffitt's and McRae's to Belk Stores.
Sales at the department store declined 11.2 percent, to $1.3 billion from $1.5 billion, reflecting the sale of Proffitt's and McRae's earlier this year. Same-store sales increased 2.7 percent, boosted by a strong performance at the upscale Saks Fifth Avenue unit.
Sales in the department store group, now being dismantled, fell 19.6 percent, to $681 million from $847 million last year, while same-store sales held steady, edging up 0.1 percent. Sales at the carriage-trade Saks Fifth Avenue business were steady at $635 million, held in check by hurricane damage, while same-store sales improved 5.4 percent.
Operating profits in the department store segment rose 250 percent, to $13.3 million from $3.8 million. But operating profits at Saks Fifth Avenue slumped 22 percent, to $16.7 million from $21.4 million.
|Qtr. 9/29 (x000)||2005||2004||% change|
a. Third quarter results include $9.4 million in impairment and dispositions costs, compared with a year-ago gain of $26.4 million; a $29,000 loss on the early retirement of debt; miscellaneous income of $1.2 million, compared with $472,000 the prior year and an income tax provision of $144,000 compared with a prior-year tax benefit of $13.4 million.
b. Nine month results include a $169.3 million in asset impairment and disposition costs, compared with a year-ago gain of $33.8 million; a $19 million loss on the early retirement of debt; miscellaneous income of $6.4 million, compared with $2.9 million last year; and an income tax provision of $24.6 million, compared with a prior-year tax benefit of $16.4 million.
|Oper. income (EBIT)||145,577||164,283||-11.4|
|Per share (diluted)||0.00||(0.22)||–|
|Average gross margin||39.0%||39.0%||–|
|Oper. income (EBIT)||423,369||511,209||-17.2|
|Per share (diluted)||0.17||(0.25)||–|
|Average gross margin||37.7%||38.5%||–|
Saks Segment Results
|Third quarter (x000)||2005||2004||% change|
|Saks Fifth Avenue|
|Saks Fifth Avenue|