Saks sees a solid first quarter

20 May '08

3 min read

Retailer Saks Incorporated announced results for the first quarter ended May 3, 2008.

Overview of First Quarter Results:
Saks recorded net income of $18.3 million, or $.13 per share, for the first quarter ended May 3, 2008.

For the prior year first quarter ended May 5, 2007, the Company recorded net income of $11.0 million, or $.07 per share. The prior year first quarter included the following after-tax items totaling net charges of $17.6 million, or $.12 per share:

• expenses of approximately $13.5 million for retention, severance, and transition costs related to the Company's downsizing following the disposition of its Saks Department Store Group (SDSG) businesses,

• expenses of approximately $1.0 million associated with the previously disclosed investigation by the Securities and Exchange Commission (which has been concluded) and the Office of the United States Attorney for the Southern District of New
York, and

• a loss on extinguishment of debt totaling $3.1 million related to the repurchase of $95.9 million of senior notes.

Comments on the First Quarter:
Stephen I. Sadove, Chairman and Chief Executive Officer of the Company, noted, "Overall, I am pleased with the Company's first quarter performance in light of the ongoing challenging macroeconomic and increasingly competitive retail environment.

Our customers responded to our merchandise selections and targeted increased promotional activity, driving an 8.4% comparable store sales growth for the quarter. We made great progress in reducing and better positioning our inventory levels.

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