Saks swings to profit in Q4
New York City — Saks returned to profitability in its fiscal fourth quarter as the chain sold more items at full-price and used fewer promotions. The company reported net income of $25 million for the period ended Jan. 29, compared with a loss of $4.6 million a year earlier.
Revenue rose 7% to $866.3 million, topping Wall Street’s estimate of $854.4 million. Same store sales were up 8.4%.
RadioShack profit drops 25% in Q4
Fort Worth, Texas — RadioShack Corp. on Tuesday said its fourth-quarter net income fell by 25%, which was toward the low end of the company’s already reduced guidance.
The company reported net income of $57 million in the October to December period, down from $75.7 million a year ago.
Revenue rose nearly 4% to $1.37 billion from $1.32 billion last year, matching analyst expectations and the company’s forecast. Same-store sales rose 1.3%, driven primarily by higher postpaid wireless sales, particularly sales of smart phones. Higher sales of prepaid wireless handsets, laptops and wireless accessories also contributed to the increase.
RadioShack said it expects operating income from its kiosks segment will decline by about $10 million to $15 million in 2011, reflecting the impact of ramping up its new kiosks in Target stores and discontinuing its ones in Sam’s Club stores. Growth is expected to resume in 2012.
RadioShack had warned in January that poor sales of T-Mobile USA phones and a shift towards cheaper phones hurt its fourth-quarter performance. RadioShack said it has informed T-Mobile that the company considers it to have "materially breached" its contract.
Dillard’s Q4 profit up 38% on improved sales
Little Rock, Ark. — Dillard’s said Tuesday that its net income grew 38% in the fourth quarter as its sales improved and the retailer controlled expenses and inventory.
Dillard’s earnings rose to $109.6 million in the three months ended Jan. 29, compared with $79.5 million one year earlier.
Sales rose 5% to $1.93 billion from $1.83 billion, with merchandise sales up 6% to $1.91 billion. The rest of its revenue comes from its CDI Contractors construction business. Same-store sales rose 7%.
The company said its annual profit more than doubled to $179.6 million. Net sales edged up to $6.12 billion from $6.1 billion.
Dillard’s closed two stores during the quarter, and plans to close a location in Decatur, Ala., later this year. At the end of the fiscal fourth quarter it operated 294 stores and 14 clearance centers in 29 states.