Belk, Inc., the nation’s largest family owned and operated fashion department store company, today announced operating results for its fiscal first quarter ended May 3.
 
Tim Belk, chairman and chief executive officer of Belk, Inc., said, “First quarter sales comparisons were challenging due to our large increases last year and the soft selling environment this year.  We did, however, manage to retain most of last year’s gains while experiencing continued growth in our online business.  Although the investments we are making in the company will continue to impact our short term profitability, we are building a solid foundation for long term growth and success.  We recently increased our regular dividend and completed a stock repurchase to reflect our commitment to drive strong returns for our shareholders.”
 
Net Sales

Net sales for the 13-week period were $955.1 million compared to $955.8 in the prior-year period. On a comparable store basis, net sales decreased 0.2 percent. Juniors, women’s contemporary and better merchandise categories in general performed well during the quarter.
 
The company’s online sales from belk.com increased 42.4 percent for the period. Online sales positively affected the company’s comparable store sales by 1.8 percent for the period.
 
Net Income

First quarter net income totaled $19.3 million compared to $28.2 million in the prior-year period. The decrease was primarily the result of higher expenses associated with the company’s investments in strategic initiatives during the period. Net income excluding non-comparable items totaled $19.4 million compared to $28.4 million in the prior year period. A reconciliation of net income to net income excluding non-comparable items is provided at the end of this release. (See attached PDF file.)
 
Belk, Inc. Stock Self Tender Offer Results Announced

On March 26, 2014, Belk’s Board of Directors approved a self-tender offer to purchase shares of the company’s common stock at a price of $48.10 per share. The tender offer was initiated on April 24, 2014, and on May 21, 2014, Belk accepted for purchase 1,961,011 shares of common stock for approximately $94.3 million.
 
New Stores, Store Expansions and Remodels

During the first quarter, the company replaced its former store in High Point, N.C. with a new fashion store at The Palladium at Deep River Shopping Center on March 12, and opened its first Texas flagship store at Galleria Dallas in Dallas, Texas, on April 9. Another new flagship store is scheduled to open in fall 2014 at Bridge Street Town Centre in Huntsville, Ala., along with a new store at Denham Springs/Livingston Parish, La.  Other flagship store expansion and remodeling projects set for completion this fall include Greensboro, N.C. (Friendly Center), Mt. Pleasant, S.C. (phase 2 main store remodel) and Hoover, Ala. (Riverchase Galleria). Belk has also announced the openings of two new stores in 2015 in Bristol, Tenn. (The Pinnacle) and Jacksonville, Fla. (Marketplace at the Fountains), along with a major expansion and remodel of its flagship store in Columbia, S.C. (Columbiana Centre).
 
Private Brand Launches

Belk recently launched CYNTHIA Cynthia Rowley for the home, an exclusive collection of home fashion merchandise in 70 Belk locations and on belk.com that includes fine linens, bedding, tabletop, decorative pillows and other home décor items.
 
Marketing Partnership Announced

Belk recently announced a six-year sponsorship agreement with the Southeastern Conference and the SEC Network, a new multiplatform national network devoted to the conference and operated by ESPN. Belk will be the official retail department store of the SEC, giving the company exclusive access to all SEC championship events, including the SEC FanFare events held in conjunction with the SEC Football Championship Game and Men's Basketball Tournament. The agreement also gives Belk prime exposure on the forthcoming SEC Network, which will launch August 14, 2014 from the ESPN studios in Charlotte, N.C.
 
Belk Donates to American Red Cross for Tornado and Storm Relief Efforts in Southern U.S.

Belk contributed $100,000 to the American Red Cross to aid victims of the recent tornadoes and storms that affected communities throughout the southern U.S.  The company is also working with local American Red Cross chapters in its market area to provide store discounts to those impacted by the storm.
 
Investments in Strategic Initiatives

  • Belk has planned investments totaling more than $700 million over a three-year period that began in fiscal 2014 for key strategic initiatives focused on:
  • A comprehensive Omnichannel initiative that will enable Belk to connect seamlessly with customers regardless of where they are, offer multiple ways to provide what they want, enhance their in-store shopping experience, and create more personalized customer interactions;
  • Creating compelling shopping environments and driving sales by investing in a flagship strategy, opening stores in existing and new markets, and expanding and remodeling existing stores and key merchandise departments;
  • Supply chain initiatives that align distribution capabilities to maximize sales and service;
  • Information technology that delivers new business capabilities for growth and profitability; and
  • Excelling in customer service.