Saks Inc. Earnings Cheat Sheet: Profit Slides

Saks Incorporated (NYSE:SKS) reported its results for the third 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 Third Quarter

Results: Net income for Saks Incorporated fell to $17.8 million (11 cents per share) vs. $36.3 million (20 cents per share) a year earlier. This is a decline of 51% from the year earlier quarter.

Revenue: Rose 5.1% to $692.3 million from the year earlier quarter.

Actual vs. Wall St. Expectations: SKS beat the mean analyst estimate of 9 cents per share. Analysts were expecting revenue of $701.8 million.

Quoting Management: Stephen I. Sadove, Chairman and Chief Executive Officer of the Company, noted, “I am very pleased with the improvement in our operating performance for the third quarter and nine months ended October 29, 2011. Our 5.8% comparable store sales increase for the third quarter was achieved in spite of further reductions in our promotional activity. I am especially pleased with our 160 basis point improvement in our third quarter gross margin rate.”

Key Stats:

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

Revenue has risen the past four quarters. Revenue increased 13% to $670.2 million in the second quarter. The figure rose 8.8% in the first quarter from the year earlier and climbed 6.8% in the fourth quarter of the last fiscal year from the year-ago quarter.

Looking Forward: Over the past ninety days, the average estimate for the fourth quarter has fallen from 17 cents per share to 16 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. For the fiscal year, the average estimate has moved up from 34 cents a share to 38 cents over the last ninety days.

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

 

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