Sales up 4.3% at retailer Belk in Q2 FY'12

Net Sales

Net sales for the 13-week period increased 4.3 percent to $867.9 million compared to the prior-year period. On a comparable store basis, sales increased 4.9 percent. The increase reflects a continuation of positive sales trends and execution of the company's key strategies. Merchandise categories achieving the highest growth rate for the quarter were home, men's and kids.

Year-to-date sales totaled $1.78 billion, an increase of 5.8 percent compared to the same 26-week period last year. On a comparable store sales basis, year-to-date sales increased 6.2 percent.

Net Income

Net income increased 9.6 percent to $27.4 million for the second quarter compared to the prior-year period. Net income excluding non-comparable items increased 12.9 percent to $27.1 million for the period compared to the same prior-year period.

Net income for the year-to-date increased 19.0 percent to $67.7 million compared to the same 26-week period last year. Net income excluding non-comparable items increased 20.2 percent to $66.7 million.

Tim Belk, chairman and chief executive officer of Belk, Inc., said, "This marked our tenth consecutive quarter of comparable store sales growth. The results are aided by investments in the business, including branding, store remodels, technology and a program on service excellence, each of which is significant.

“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 Opens eCommerce Fulfillment Center

Belk began operating a 515,000-square-foot eCommerce fulfillment center in Jonesville, S.C. in June 2012. The new facility represents a $4.5 million investment for Belk and is expected to create 124 new jobs in the Union County, S.C. area over the next five years. The new center is in addition to the company's existing eCommerce fulfillment center in Pineville, N.C.

Investments in Strategic Initiatives

Belk has planned investments totaling approximately $600 million over a five-year. period that began in fiscal year 2011 in key strategic initiatives including store remodels and service improvements; eCommerce; information technology; merchandise planning and processes; marketing and branding; and improved sourcing practices.

Charlotte, N.C.-based Belk Inc. is the nation's largest privately owned mainline department store company with 303 Belk stores located in 16 Southern states. 

Belk Inc