Saks Inc. Earnings Cheat Sheet: Beats Wall Street Expectations

Saks Incorporated’s (NYSE:SKS) second quarter loss narrowed, beating estimates. Saks Incorporated is a fashion retail organization offering assortment of luxury fashion apparel, shoes, accessories, jewelry, cosmetics and gifts.

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Saks Incorporated Earnings Cheat Sheet for the Second Quarter

Results: Loss narrowed to $8.4 million (loss of 5 cents per diluted share) from $32.2 million (loss of 21 cents per share) in the same quarter a year earlier.

Revenue: Rose 13% to $670.2 million from the year earlier quarter.

Actual vs. Wall St. Expectations: SKS beat the mean analyst estimate of a loss of 8 cents per share. Analysts were expecting revenue of $661.2 million.

Quoting Management: Stephen I. Sadove, Chairman and Chief Executive Officer of the Company, noted, “I am very pleased with the significant improvement in our operating performance for the second quarter and six months ended July 30, 2011 which resulted from strong comparable store sales growth, continued gross margin rate expansion, and meaningful SG&A leverage. “Our 15.5% second quarter comparable store sales increase exceeded our expectations as we experienced strength throughout the quarter.”

Key Stats:

Last quarter marked the fifth consecutive quarter of gross margins expanding as the company’s gross margin expanded 0.7 percentage point to 38% from the year earlier quarter. Over that span, margins have grown on average 2.5 percentage points per quarter on a year-over-year basis.

The company has now topped analyst estimates for the last four quarters. It beat the mark by one cent in the first quarter, by 5 cents in the fourth quarter of the last fiscal year, and by 3 cents in the third quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 8.8% to $726 million in the first quarter. The figure rose 6.8% in the fourth quarter of the last fiscal year from the year earlier and climbed 4.3% in the third quarter of the last fiscal year from the year-ago quarter.

SKS’ loss in the latest quarter follows profits in the previous three quarters. The company reported a profit of $28.4 million in the first quarter, a profit of $25 million in the fourth quarter of the last fiscal year and $36.3 million in the third of the last fiscal year.

Competitors to Watch: Macy’s, Inc. (NYSE:M), J.C. Penney Company, Inc. (NYSE:JCP), Dillard’s, Inc. (NYSE:DDS), Nordstrom, Inc. (NYSE:JWN), Kohl’s Corporation (NYSE:KSS), Sears Holdings Corporation (NASDAQ:SHLD), Coach (NYSE:COH), Vera Bradley (NASDAQ:VRA), Fossil Inc (NASDAQ:FOSL), Liz Claiborne (NYSE:LIZ), Guess? (NYSE:GES), Polo Ralph Lauren (NYSE:RL), The Estee Lauder Companies (NYSE:EL), Avon Products (NYSE:AVP) and Steven Madden (NASDAQ:SHOO).

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(Source: Xignite Financials)