Retailer Saks Incorporated announced results for the third quarter and nine months ended October 30, 2010.
Overview of Results for the Third Quarter and Nine Months Ended October 30, 2010 For the third quarter ended October 30, 2010, the Company recorded net income of $36.3 million, or $.20 per diluted share. Those results included a $26.7 million, or $.14 per share, gain related to the reversal of certain estimated income tax reserves deemed no longer necessary. Excluding this gain, the Company would have recorded net income of $9.7 million, or $.06 per share, for the third quarter ended October 30, 2010.
For last year's third quarter ended October 31, 2009, the Company posted net income of $6.3 million, or $.04 per share. Those results included a $4.4 million, or $0.03 per share, gain related to the reversal of certain estimated income tax reserves deemed no longer necessary. Excluding this gain, the Company would have recorded net income of $1.9 million, or $.01 per share, for the third quarter ended October 31, 2009.
For the nine months ended October 30, 2010, the Company recorded net income of $22.9 million, or $.14 per diluted share. Those results included a net after-tax gain totaling $13.9 million, or $.08 per share, comprised of:
• $12.8 million of net lease termination, severance, and other store closing costs primarily related to the second and third quarter closings of six Saks Fifth Avenue stores, netted against • the aforementioned gain of $26.7 million related to the reversal of certain estimated income tax reserves.
Excluding these items, the Company would have recorded net income of $9.0 million, or $.06 per share, for the nine months ended October 30, 2010.
For the prior year nine months ended October 31, 2009, the Company posted a net loss of $53.3 million, or $.37 per share. Excluding an after-tax loss from discontinued operations of $0.3 million, the Company recorded a loss from continuing operations of $53.0 million, or $.37 per share. Those results included the aforementioned gain of $4.4 million, or $0.03 per share, related to the reversal of certain estimated income tax reserves. Excluding this gain, the Company would have recorded a net loss of $57.7 million, or $.40 per share, for the nine months ended October 31, 2009.
Comments on the Third Quarter and Nine Months Stephen I. Sadove, Chairman and Chief Executive Officer of the Company, noted, "I am pleased with our third quarter operating performance. The year-over-year improvement was primarily driven by our continued comparable store sales growth and gross margin expansion.
"Our 5.7% third quarter comparable store sales increase was consistent with our expectations, and was achieved even as we continued to strategically reduce our promotional activity." The Company's comparable store sales grew 5.5% for the nine months.
In the Saks Fifth Avenue stores, several merchandise categories showed strength during the quarter, including shoes, women's apparel, dresses, men's sportswear, and fashion jewelry. The New York City flagship store sales performance was in line with the Company's aggregate comparable store sales performance during the quarter.
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