Saks Earnings: Margins Expand, Profit Climbs, Revenues Miss Analyst Estimate

Saks Incorporated (NYSE:SKS) reported its results for the first quarter. Saks is a fashion retail organization offering an assortment of luxury fashion apparel, shoes, accessories, jewelry, cosmetics and gifts.

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Saks Incorporated Earnings Cheat Sheet for the First Quarter

Results: Net income for Saks Incorporated rose to $32.1 million (18 cents per share) vs. $28.4 million (16 cents per share) in the same quarter a year earlier. This marks a rise of 13.2% from the year-earlier quarter.

Revenue: Rose 3.8% to $753.6 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Saks Incorporated reported adjusted net income of 17 cents per share. By that measure, the company fell short of mean estimate of 18 cents per share. Analysts were expecting revenue of $762.6 million.

Quoting Management: Stephen I. Sadove, Chairman and Chief Executive Officer of the Company, noted, “We continued to make solid progress during the first quarter. Our year-over-year earnings improvement was driven by a 4.8% comparable store sales increase, on top of a 10.2% comparable store sales increase in last year’s first quarter, and continued gross margin rate improvement.”

Key Stats:

Revenue has risen the past four quarters. Revenue increased 6.8% to $925.1 million in the fourth quarter of the last fiscal year. The figure rose 5.1% in the third quarter of the last fiscal year from the year earlier and climbed 13% in the second quarter of the last fiscal year from the year-ago quarter.

After beating analyst estimates for the two previous quarters, the company fell short of forecasts. In the fourth quarter of the last fiscal year, it topped the mark by 3 cents, and in the third quarter of the last fiscal year, it was ahead by 2 cents.

Margins increased in the fourth quarter of the last fiscal year after dropping the quarter before. Gross margins grew to 44.4%, up 0.3 percentage point from the year-earlier quarter. In the third quarter of the last fiscal year, the figure rose 0.2 percentage point to 37.6% from the year earlier quarter.

Looking Forward: The average estimate for the second quarter remains unchanged at 5 cents a share. The average estimate for the fiscal year is 50 cents per share, a rise from 48 cents ninety days ago.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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