Join        Login             Stock Quote

Saks (SKS) 3Q Earnings Miss Estimates, Shares Off

 November 13, 2012 09:44 AM

(By Balaseshan) Retailer Saks Inc. (NYSE: SKS) reported a 27.2% jump in quarterly earnings on a reversal of Federal income tax reserves. However, adjusted earnings and revenue missed Street's expectations.

Earnings for the third quarter were $22.60 million or $0.14 per share, up from $17.77 million or $0.11 per share last year.

The latest quarter results included a reversal of about $3.3 million in Federal income tax reserves deemed no longer necessary. Excluding this item, the company would have recorded profit of $19.3 million or $0.12 per share.

Sales rose 3% to $713.22 million. Comparable store sales increased 3.3% for the quarter.

[Related -Futures Down As Investors In Cautious Mood; Saks, Inc. (SKS) In Focus]

Analysts, on average, polled by Thomson Reuters had expected a profit of $0.13 per share on revenue of $730.26 million for the third quarter.

The company said several merchandise categories showed sales strength during the third quarter, including women's and men's contemporary apparel, women's and men's shoes, handbags, fine jewelry, and fragrances.

The New York City flagship store sales performance was positive and generally in line with the aggregate comparable store sales performance of the company's Saks Fifth Avenue stores during the quarter, Saks noted.

Gross margin fell to 43.9% from 44.2%, relating principally to a modest increase in targeted promotional activity during the quarter.

Looking ahead into the fourth quarter, the company expects year-over-year comparable store sales to be relatively flat. This assumption is predicated on sales for the balance of the quarter returning to a growth rate similar to the comparable store sales increase posted in the third quarter.

[Related -Futures Mixed Ahead Of Home Sales Data; Himax Technologies, Inc. Soars]

The company expects its year-over-year gross margin rate to be flat to down 50 basis points in the fourth quarter. As a percent of sales on a year-over-year basis, Saks projects about 20 to 60 basis points of selling, general and administrative expense leverage.

SKS is trading down 5.06% at $9.38 on Tuesday. The stock has been trading between $8.49 and $12.14 for the past 52 weeks.



Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageAutomating Ourselves To Unemployment

In this current era of central planning, malincentives abound. We raced to frack as fast we could for the read on...

article imageFed: Waiting For June… Or Godot?

The Federal Reserve left interest rates unchanged yesterday, as widely expected. But the possibility of a read on...

article imageThe Single Best Place To Invest Your Money For Retirement

It was never supposed to be this daunting. At least that's what we were read on...

article imageNegative Blowback From Negative Interest Rates

The Federal Reserve is widely expected to leave interest rates unchanged today. But perhaps standing pat read on...

Popular Articles

Daily Sector Scan
Partner Center

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.