Belk Inc. reversed a loss in the third quarter on strong sales on the heels of its acquisition of the Parisian chain of stores from Saks Inc. earlier this year.
For the quarter ended Oct. 28, net income was $23.1 million, which compares with a loss of $4.5 million during the same period a year ago. Net sales for the retailer rose 13.3 percent to $794.3 million from $701.3 million in the year-ago quarter.
For the nine months ended Oct. 28, earnings climbed 85.9 percent to $68.8 million from $37 million during the same period a year ago on sales that gained 21 percent to $2.3 billion from $1.9 billion.
Belk attributed strength to its bottom line during the quarter to a few different factors, including strong comparable-store sales, which grew 7.4 percent, and higher gross margins. Last year, the company faced the combined negative impact of Hurricane Katrina and transitional costs for the former Proffitt’s and McRae’s stores, which it acquired. The opening of six new Belk stores and one store expansion, as well as the one-month revenues from the acquired Parisian stores, also bolstered results.
“Business results exceeded our expectations. Third-quarter sales were exceptionally strong, driven by women’s, men’s and children’s,” said Tim Belk, chairman and chief executive officer, in a statement. “Everyone has been working very hard on two new acquisitions, Migerobe fine jewelry and Parisian, which have provided new growth opportunities.”