Saks Incorporated Earnings: Here’s Why Shares are Up Now

Saks Incorporated (NYSE:SKS) delivered a profit and met Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 2.2%.

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Saks Incorporated Earnings Cheat Sheet

Results: Adjusted Earnings Per Share were the same at $0.19 in the quarter as EPS of $0.19 in the year-earlier quarter.

Revenue: Rose 5.25% to $793.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Saks Incorporated reported adjusted EPS income of $0.19 per share. By that measure, the company missed the mean analyst estimate of $0.19. It beat the average revenue estimate of $778.53 million.

Quoting Management: Stephen I. Sadove, Chairman and Chief Executive Officer of the Company, noted, “I am pleased with our first quarter comparable store sales growth of 5.9%, which was on top of a solid 4.8% increase in last year’s first quarter. I am also pleased that we maintained a 44.4% gross margin rate, which was flat with last year, in an increasingly promotional environment. As expected, we experienced SG&A deleverage in the quarter as we continued to invest in our omni-channel and other important initiatives.”

Key Stats (on next page)…

Revenue decreased 18.78% from $976.61 million in the previous quarter. EPS increased 11.76% from $0.17 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a loss of $0.05 to a loss $0.07. For the current year, the average estimate has moved down from a profit of $0.50 to a profit of $0.43 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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