Saks profit surges in Q3

New York City -- Saks reported Tuesday that its net income rose to $36.3 million for the quarter ended Oct. 30, up from $6.3 million in the year-ago period. Third-quarter 2010 results were helped by a surge in luxury spending and a $26.7 million gain related to income tax reversals.

Revenues rose to $658.8 million for the quarter, compared with $631.4 million the prior year. Same-store sales increased 5.7%.

“We feel much better about the overall tone of business and the way our customers are responding to our initiatives," said Steve Sadove, CEO, in a statement, while acknowledging the economic recovery remains tentative.

Saks’ flagship store on Manhattan's Fifth Avenue, which accounts for about 10% of chainwide sales, produced strong results in the third quarter, boosted by spending by tourists and Wall Streeters.

The company currently operates 47 Saks Fifth Avenue stores, 58 Off 5th stores, and saks.com.