Belk Sales up, Profit Squeezed in Q1
August 2, 2013,
Net income for the quarter ended May 4 tumbled 32% to $28.2 million. In addition to lower merchandise margins, the bottom line was impacted by high expenses associated with strategic investments.
"While those investments will increase our expense in the short term, we expect them to generate strong future returns," said Tim Belk, chairman and ceo.
Sales rose 5.1 percent to $956 million. Comps climbed 5.2%, the company's 13th consecutive quarter of same-store sales growth. Leading merchandise categories included ladies accessories, cosmetics, fine jewelry, men's and kids.
Ecommerce sales jumped 67% and positively affected comparable store sales by 1.6%.
Belk plans to open new flagship stores in 2014 at the Galleria in Dallas, Texas, and Bridge Street Town Centre in Huntsville, Ala. It also plans to expand existing stores in Flowood, Miss., Greensboro, N.C. (Friendly Center), and Mt. Pleasant, S.C. and convert them to flagship stores over the next two years.
Related Content By Author
Live From New York: Fashion Comes Across the Pond
Home & Textiles Today eDaily
Most Viewed Articles
See the September 2017 issue of Home & Textiles Today. In this issue, we look at the Attack of the Killer Third Tier: Monster off-pricers are climbing to the top of the food chain, plus New Products: 40 pages of new products debuting at the New York Home Fashions Market; Home Stores: TJX unveils first U.S. HomeSense store; Clicks to Bricks: Boll & Branch moves from digital to physical retailing; and much more...