Saks Q1 sales increase, net income drops
New York – Saks Incorporated reported a roughly 5% increase in total sales between first quarter 2012 and first quarter 2013, although net income dropped during that same time period. Total sales for the first quarter of this year were $793.2 million, up from $753.6 million in the first quarter of last year. However, net income of $20 million for first quarter 2013 was down close to 40% from $32.7 million for first quarter 2012. Same store sales increased 5.9%.
Saks chairman and CEO Steven I. Sadove said women’s contemporary and advanced designer apparel; dresses; women’s shoes; handbags; children’s apparel; and men’s accessories, shoes, and contemporary apparel all showed sales strength in the quarter. However, he said expenses related to omni-channel operations and a technology initiative called Project Evolution impacted net income performance.
“We are making strategic long-term investments in infrastructure and technology (Project Evolution) that will enable us to further enhance our omni-channel capabilities,” said Sadove. “These investments will continue to place pressure on our near-term profitability; however, we are taking the right actions and a long-term approach to the business. We are positioning our company for future revenue and earnings growth.”