Saks CEO pleased with substantial improvement for Q1
23 May '07
3 min read
• $2.6 million, or $.02 per share, primarily related to asset impairments and dispositions, • expenses of approximately $4.0 million, or $.03 per share, for retention and severance, • expenses of approximately $1.0 million, or $.01 per share, associated with the aforementioned investigations, and • income of approximately $2.5 million, or $.02 per share, due to the favorable conclusion of certain tax examinations.
Comments on the Quarter: Steve Sadove, Chairman and Chief Executive Officer of the Company, noted, "We are pleased with the substantial improvement in operating income for the first quarter which primarily was driven by strong comparable store sales growth and solid expense management. Our first quarter gross margin rate also improved slightly over last year's strong gross margin rate."
"Our first quarter comparable store sales increase of 14.4% indicates that we have made significant progress in refining and strengthening our merchandise assortments by store and that our selling culture and marketing efforts continue to improve."
Sadove continued, "The trends in the number of transactions and the average dollars per transaction improved for the first quarter, and we experienced growth in nearly all merchandise categories. Sales performance was solid across all geographies."
"Our New York City flagship location once again generated a strong performance, as did most of our other flagship locations. We also experienced strength in several of our secondary market stores where we have intensified our focus and substantially enhanced the merchandise assortments. The Saks Direct business posted a sales increase of approximately 50% over last year's first quarter, and we experienced modest sales growth at Off 5th."
marketing@alchempro.com
