Saks posts 9.5% comparable store sales growth

22 Feb '12

5 min read

Retailer Saks Incorporated announced results for the fourth quarter and fiscal year ended January 28, 2012. For the fourth quarter ended January 28, 2012, the Company recorded net income of $37.0 million, or $.21 per share.

These results included a net after-tax gain totaling $8.0 million, or $.04 per share, comprised of:

-severance and asset impairment charges totaling $3.9 million,
-store closing expenses of $1.1 million,
-a positive retroactive adjustment (from April 15, 2011 to October 29, 2011) of $3.1 million as provided in the risk and revenue sharing provisions of the November 2011 amendment of the Company's credit card program agreement with HSBC, and
-the reversal of approximately $9.9 million in state estimated income tax reserves deemed no longer necessary.

Excluding this net after-tax gain, the Company would have recorded net income of $29.0 million, or $.17 per share, for the fourth quarter ended January 28, 2012.

For last year's fourth quarter ended January 29, 2011, the Company posted net income of $25.0 million, or $.14 per share. The results included a net after-tax gain of $3.4 million, or $.01 per share, comprised of:

- a net gain of $5.4 million primarily related to Saks Fifth Avenue store closings and
- a non-cash pension charge of $2.0 million related to excess lump sum distributions during 2010.

Excluding this net after-tax gain, the Company would have recorded net income of $21.6 million, or $.13 per share, for the fourth quarter ended January 29, 2011.

Overview of Results for the Fiscal Year Ended January 28, 2012

For the fiscal year ended January 28, 2012, the Company recorded net income of $74.8 million, or $.45 per diluted share. Those results included a net after-tax gain totaling $2.0 million, or $.01 per share, comprised of:

- a pension and related benefit charge, a third-party receivable write-down, severance, and asset impairment charges totaling $5.6 million,
- store closing expenses of $3.0 million,
- a loss on debt extinguishment of $0.3 million (related to the early retirement of approximately $1.9 million of senior notes), and
- the reversal of approximately $10.9 million in state estimated income tax reserves deemed no longer necessary.

Excluding this net after-tax gain, the Company would have recorded net income of $72.8 million, or $.44 per share, for the fiscal year ended January 28, 2012.

For the fiscal year ended January 29, 2011, the Company posted net income of $47.8 million, or $.30 per share. The results included an after-tax gain of $17.2 million, or $.11 per share, comprised of the following items:

- charges of $7.5 million primarily related to store closings and asset impairments,
- the aforementioned $2.0 million pension charge, and
- the reversal of approximately $26.7 million in certain federal and state estimated income tax reserves deemed no longer necessary.

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