Saks profit surges in Q3
New York City — Saks reported Tuesday that its net income rose to $36.3 million for the quarter ended Oct. 30, up from $6.3 million in the year-ago period. Third-quarter 2010 results were helped by a surge in luxury spending and a $26.7 million gain related to income tax reversals.
Revenues rose to $658.8 million for the quarter, compared with $631.4 million the prior year. Same-store sales increased 5.7%.
“We feel much better about the overall tone of business and the way our customers are responding to our initiatives," said Steve Sadove, CEO, in a statement, while acknowledging the economic recovery remains tentative.
Saks’ flagship store on Manhattan’s Fifth Avenue, which accounts for about 10% of chainwide sales, produced strong results in the third quarter, boosted by spending by tourists and Wall Streeters.
The company currently operates 47 Saks Fifth Avenue stores, 58 Off 5th stores, and saks.com.
Sales and profits up at TJX
Framingham, Mass. — The TJX Cos.’ fiscal third-quarter earnings rose 7%, topping its own forecasts, as the discount retailer’s sales improved.
The company reported a better-than-expected profit of $372.3 million, up from $347.8 million in the year-ago period. Net sales rose 5% to $5.53 billion, from $5.24 billion. Same-store sales increased 1%.
"We were able to sustain last year’s significant increase in profit margin by continuing to run our business with lean inventories, which has led to additional improvement in merchandise margins," said president and CEO Carol Meyrowitz said. "Customer traffic continued to be up over large increases last year despite warm weather in September and October, which dampened demand for cold weather apparel."
TJX operates 919 T.J. Maxx, 832 Marshalls, 336 HomeGoods, and 161 A.J. Wright stores in the United States. In Canada, the company operates 212 Winners, 82 HomeSense and 3 Stylesense stores, and in Europe, 304 T.K. Maxx and 24 HomeSense stores.
Abercrombie & Fitch profit up in Q3
New Albany, Ohio — Abercrombie & Fitch Co. on Tuesday reported a profit of $50 million for the quarter ended Oct. 30, compared with $38.8 million in the year-ago period. Its results were helped by improving sales in the United States and international revenue.
Sales rose 18% to $886 million, matching Wall Street expectations. Same-store sales increased 7%. By division, same-store sales rose 8% at namesake stores, 2% at Abercrombie kids stores and 7% at surf-themed Hollister stores.
The retailer continues to expand internationally to offset slower U.S. growth, and has also cut prices to compete with lower-priced rivals such as Aeropostale and American Eagle Outfitters. Abercrombie expects to open about 20 international mall-based Hollister stores during the year, 11 of which will be in the fourth quarter.
It also plans to open its first Abercrombie & Fitch store in Puerto Rico, a Hollister store on Fifth Avenue in New York and its first international Gilly Hicks lingerie store, in the United Kingdom.
The company operates a total of 1,106 stores, consisting of 340 Abercrombie & Fitch stores; 201 Abercrombie kids stores; 510 Hollister Co. stores and 17 Gilly Hicks stores domestically. The company also operates seven Abercrombie & Fitch stores, four Abercrombie kids stores and 27 Hollister Co. stores internationally.