Saks Posts Sixfold Increase in Net Income
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Saks Inc., owner of the Saks Fifth Avenue chain, said third-quarter profit surged more than sixfold to $12.4 million as demand for handbags and evening gowns led to the company’s first sales gain in almost three years.
Net income, boosted by a tax credit, rose to 9 cents a share from $1.92 million, or 1 cent, a year earlier. Sales in the quarter ended Nov. 1 increased 4.3% to $1.47 billion. Sales at stores open at least a year rose 3.1%, Birmingham, Ala.-based Saks said.
Demand for luxury goods has grown faster than for mid-priced merchandise as concerns about the economy ease. That helped the Saks Fifth Avenue unit report a 5% same-store sales gain.
Saks shares fell 21 cents to $14.79 on the New York Stock Exchange.
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