Saks Inc. (SKS:US), the New York-based luxury retail chain, reported first-quarter earnings growth that slowed amid increased spending on marketing and other initiatives.
Net income in the quarter ended April 28 rose 13 percent to $32.1 million, or 18 cents a share, from $28.4 million, or 16 cents, a year earlier, Saks said today in a statement. Profit rose 51 percent in the same period a year earlier.
Saks spent more integrating its store and online inventories into a so-called omni-channel, boosted advertising and marketing and increased employee benefits. Selling, general and administrative expenses climbed to 25.2 percent of sales from 24.6 percent a year earlier. Liz Dunn, an analyst with Macquarie Group in New York, who recommends investors hold the shares, estimated 24.8 percent.
Saks was unchanged at $10.05 at the close in New York. The shares have gained 3.1 percent this year.
Revenue advanced 3.8 percent to $753.6 million, Saks said. Analysts projected $759.4 million, the average of 10 estimates. Sales at stores open at least a year climbed 4.8 percent, the company said.
Excluding some items, profit totaled 19 cents. Analysts projected 18 cents, the average of 13 estimates (SKS:US) compiled by Bloomberg.
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