Saks Inc posts net loss of $57.9mn

28 Feb '11

3 min read

Retailer Saks Incorporated announced results for the fourth quarter and fiscal year ended January 29, 2011.

Overview of Results for the Fourth Quarter Ended January 29, 2011
For the fourth quarter ended January 29, 2011, the Company posted net income of $25.0 million, or $.14 per share. The results included an 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 $2.0 million non-cash pension charge related to excess lump sum distributions during 2010.

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

For the prior year 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.

Excluding these items, the Company would have recorded net income from continuing operations of $10.2 million, or $.06 per share, for the prior year fourth quarter ended January 30, 2010.

Overview of Results for the Fiscal Year Ended January 29, 2011
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

- a $26.7 million gain related to the reversal of certain estimated income tax reserves deemed no longer necessary.

Excluding this net gain, the Company would have recorded net income of $30.6 million, or $.19 per share, for the fiscal year ended January 29, 2011.

For the fiscal year ended January 30, 2010, the Company posted a net loss of $57.9 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 federal and state tax adjustments.

Excluding these items, the Company would have recorded a net loss of $47.5 million, or $.33 per share, for the prior fiscal year ended January 30, 2010.

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Saks Incorporated

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