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Saks Incorporated (NYSE:SKS) reported net income above Wall Street’s expectations for the third quarter. Saks is a fashion retail organization offering an assortment of luxury fashion apparel, shoes, accessories, jewelry, cosmetics and gifts.
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Saks Incorporated Earnings Cheat Sheet
Results: Net income for Saks Incorporated rose to $22.6 million (14 cents per share) vs. $17.8 million (11 cents per share) in the same quarter a year earlier. This marks a rise of 27.2% from the year-earlier quarter.
Revenue: Rose 3% to $713.2 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Saks Incorporated beat the mean analyst estimate of 12 cents per share. It fell short of the average revenue estimate of $762.6 million.
Quoting Management: Stephen I. Sadove, Chairman and Chief Executive Officer of the Company, noted, “In spite of the continued uncertain macro environment, we were pleased to post a modest year-over-year increase in operating income and net income for the third quarter.”Our comparable store sales increase of 3.3% in the third quarter was below our initial expectation but was on top of a very solid 5.8% comparable store sales increase in the prior year third quarter. On a year-to-date basis, comparable store sales increased 4.3%, and similarly, this was on top of very strong 10.3% increase in the first nine months of last year.”Sadove continued, “For the quarter, our gross margin rate deterioration was partially offset by modest SG&A leverage. The third quarter gross margin rate was slightly below our expectations, and the level of SG&A leverage modestly exceeded our expectations.”
Revenue has risen the past four quarters. Revenue increased 5.1% to $704.1 million in the second quarter. The figure rose 3.8% in the first quarter from the year earlier and climbed 6.8% in the fourth quarter of the last fiscal year from the year-ago quarter.
The company has beaten estiamtes for two quarters in a row. In the second quarter, it topped expectations with a loss of -8 cents versus a mean estimate of a loss of 9 cents per share.
After sitting in the red the quarter before, the company reported a profit last quarter. The company booked a net loss of $32.1 million, or 18 cents per share, in the first quarter.
Looking Forward: For next quarter, analysts have a more positive outlook about the company’s expected results. The average estimate for the fourth quarter is 21 cents per share, up from 20 cents ninety days ago. For the fiscal year, the average estimate has moved up from 46 cents a share to 48 cents over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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