Birmingham, AL, October 17, 2005--Saks Inc. in its second fiscal quarter reported net income of $8.2 million, or $0.06 per share, compared with a loss of $25.3 million, or $0.18 per share, a year earlier.
The results include a gain on the sale of some stores, and the company said it was still considering selling other units. Gains in the quarter include a net gain of $57.0 million, or $0.40 per share, consisting of a gain on the sale of its Proffitt's/McRae's business netted against a loss on the extinguishment of debt.
Sales in the quarter were off 2.6% to $1.32 billion, in part because the sale of Proffitt's/McRae's reduced the number of stores. Same store sales were up 2.1%.
Saks restated last year's results after an internal investigation found that the retailer had improperly collected discounts from vendors known as "markdown allowances."
The company said it was still looking at options including a sale of two of its units -- the Northern Department Store Group that includes Carson Pirie Scott stores, and its Club Libby Lu boutiques that offer makeover parties for girls.
