Saks Inc.'s profits vaulted to $36.3 million, or 20 cents a share, compared with $6.3 million, or 4 cents a share, in the same quarter last year. Excluding one-time items, including a $26.7 million gain related to the reversal of certain estimated income tax reserves deemed no longer necessary, the company earned 6 cents a share.
Ahead of average analyst estimates polled by Thomson Reuters of 3 cents.
Revenue for the luxury department store chain was $658.8 million, up 4.3% from $631.4 million a year ago.
Stephen I. Sadove, Saks' chief executive, attributedgains to growth of comparable store sales, up 5.7%, and gross margins.
In a statement, the company said Saks Fifth Avenue stores' profit widened on several merchandise categories, including shoes, women's apparel, dresses, men's sportswear and fashion jewelry.
Meanwhile, Saks Direct, the retailer's online store, posted a 21% increase in comparable store sales.
Same store sales are expected to grow in the mid-single digit range both next quarter and for the full-year.
“As we look to the balance of this year and beyond, we remain very focused on driving additional revenue growth, further gross margin expansion, and controlling expenses,” Sadove said.
