Saks Inc provides outlook for 2008

06 Mar '08

3 min read

Retailer Saks Incorporated announced results for the fourth quarter and fiscal year ended February 2, 2008.

The Company sold its Saks Department Store Group (SDSG) businesses in 2005 and 2006, and the sold SDSG businesses are presented as "discontinued operations" in the prior year period. Saks Fifth Avenue (SFA) and Club Libby Lu are reflected in the Company's continuing operations.

Overview of Fourth Quarter Results:

Saks recorded net income of $39.5 million, or $.26 per share, for the fourth quarter ended February 2, 2008. The fourth quarter included the following after-tax items totaling a net gain of $10.4 million, or $.07 per share:

• expenses of approximately $1.9 million for retention, severance, and transition costs related to the Company's downsizing and consolidation following the disposition of its SDSG businesses,

• charges of $0.4 million related to asset impairments and dispositions,

• a gain of $8.1 million associated with proceeds from an insurance settlement related to the New Orleans store, which was destroyed in the aftermath of hurricane Katrina,

• a net gain of $1.6 million related to an Off 5th store closing and the sale of an unused support facility, and

• a $3.0 million state income tax valuation adjustment (credit).

For the prior year fourth quarter ended February 3, 2007, the Company recorded income from continuing operations of $21.6 million, or $.14 per share. After recognition of the Company's after-tax loss from discontinued operations of $0.1 million, or $.00 per share, net income totaled $21.5 million, or $.14 per share, in last year's fourth quarter. The prior year fourth quarter included the following after-tax items totaling net charges of $6.9 million, or $.05 per share:

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