Saks Inc. (NYSE:SKS) posted better-than-expected quarterly profit, helped by comparable sales growth and gross margin improvement.
Earnings were $17.8 million or $0.11 per share for the third quarter. Excluding a gain of 14 cents, the company earned $9.7 million or $0.06 per share in the comparable quarter of the previous year.
Net sales rose about 5 percent to $692.3 million from $658.8 million. Comparable store sales grew 5.8 percent.
Analysts, on average, polled by Thomson Reuters expect the company to earn $0.09 per share on sales of $695.1 million.
Gross margin improved 160 basis points to 44.2 percent, mainly due to increased full-price selling and reduced promotional activity, Saks said.
Looking ahead for the fourth quarter, the company sees comparable store sales growth in the mid-to-high single digit range, while gross margins are expected to decline around 50 basis points.
SKS closed Monday's regular trading session at $10.20. The stock has been trading in the 52-week range between $7.67 and $12.97.