Retailer Saks Incorporated announced results for the fourth quarter and fiscal year ended January 30, 2010.
Overview of Results for the Fourth Quarter and Fiscal Year Ended January 30, 2010
For the fourth quarter ended January 30, 2010, the Company posted a net loss of $4.6 million, or $.03 per share. Those results included the following after-tax items totaling $14.8 million, or $.09 per share:
• charges of $17.3 million related to asset impairments, • a $3.1 million non-cash pension charge related to excess lump sum distributions during 2009 primarily resulting from the Company's 2009 reductions-in-force, and • a net gain of $5.6 million related to federal and state tax adjustments.
Saks recorded a net loss of $99.7 million, or $.72 per share, for the prior year fourth quarter ended January 31, 2009. Excluding the after-tax loss from discontinued operations of $15.8 million, or $.11 per share, the Company recorded a net loss from continuing operations of $83.9 million, or $.61 per share, for that quarter. Those results included the following after-tax items totaling $11.2 million, or $.08 per share:
• charges of $6.2 million related to asset impairments, • $6.4 million of severance expenses related to the Company's downsizing, and • a net gain of $1.4 million related to the sale of two unutilized properties.
For the fiscal year ended January 30, 2010, the Company posted a net loss of $57.9 million, or $.40 per share. Excluding an after-tax loss from discontinued operations of $0.3 million, the Company recorded a loss from continuing operations of $57.7 million, or $.40 per share. Those results included the following after-tax items totaling $10.4 million, or $.07 per share:
• charges of $17.3 million related to asset impairments, • charges of $3.1 million related to the pension expense described above, and • a net gain of $10.0 million related to the federal and state tax adjustments.
For the prior fiscal year ended January 31, 2009, the Company recorded a net loss of $158.8 million, or $1.15 per share. Excluding the after-tax loss from discontinued operations of $32.2 million, or $.23 per share, the Company recorded a loss from continuing operations of $126.6 million, or $.92 per share. The fiscal year included the following after-tax items totaling $26.2 million, or $0.19 per share:
• charges of $7.0 million related to asset impairments, • expenses of approximately $6.7 million for severance costs, • a net gain of $2.1 million related to the sale of three unutilized properties, and • the write-off and adjustment of $14.6 million of certain deferred tax assets primarily associated with Federal Net Operating Loss tax credits that expired at the end of fiscal 2008.
Comments on the Fourth Quarter and Fiscal Year Ended January 30, 2010
Stephen I. Sadove, Chairman and Chief Executive Officerof the Company, noted, "Excluding certain items, we were able to post a modest fourth quarter profit due to the substantial improvement in our gross margin performance and diligent expense control. These results were achieved in spite of our comparable store sales decline."
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