Belk makes strides in Q2
Gary Evans -- Home Textiles Today, August 31, 2012
Charlotte, N.C. - Belk just closed its 10th consecutive quarter of comp store sales growth - and home had a lot to do with that.
The family-owned and operated department store chain identified home as one of the merchandise categories with the highest growth rate for the quarter, along with men's and kids.
Net income for the second quarter, ended July 28, climbed 9.6% to $27.4 million. Excluding non-comparable items, net income increased 12.9% to $27.1 million.
Sales rose 4.3% to $867.9 million, with comps up 4.9.
Year-to-date, net income increased 19.0% to $67.7 million Net income excluding non-comparable items increased 20.2% to $66.7 million.
Sales for the 26 weeks were up 5.8% to $1.78 billion. Comps rose 6.2%.
Tim Belk, chairman and ceo of the 303-unit chain, said ecommerce "continues to grow rapidly, and we celebrated a milestone in June with the opening of an additional half million square foot fulfillment center to accommodate the business."
Belk's new e-commerce fulfillment center, located in Jonesville, S.C., measures 515,000 square feet, and represents a $4.5 million investment for the company. The site supports the company's existing e-commerce fulfillment center in Pineville, N.C.
The new center is part of the company's recent investments totaling approximately $600 million that began last year and run through the next five years. Aside from e-commerce, other key strategic initiatives include: store remodels and service improvements; information technology; merchandise planning and processes; marketing and branding; and improved sourcing practices.
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