Belk Inc., impacted by strategic initiative costs and the sale of the company, reported that its net income for the second quarter ended Aug. 1 dropped 52.6 percent to $14.5 million, compared to $30.6 million in the prior-year period.
Net income excluding nonomparable items totaled $21 million, compared to $30 million in the prior-year period. The retailer listed long-term strategy expense, net of income tax, of $6 million and asset impairment and exit costs, net of income tax, of $1 million.
However, the regional department store posted a 1.2 percent increase in comparable store sales, and said that its merchandising margins were strong and inventory level was below last year. Net sales for the 13-week period were $917.4 million, compared to $906.5 million in the prior-year period. The company characterized back-to-school sales as having been “encouraging,” giving confidence for fall selling.
The strongest merchandise categories were men’s and women’s apparel, especially activewear, across all areas. The company’s online sales increased 35.6 percent for the period. Online sales positively affected the company’s comparable store sales by 2.1 percent for the period.
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Belk, which operates 297 stores in 16 Southern states and belk.com, has invested more than $600 million in key strategic initiatives over the last three fiscal years in the areas of omnichannel, improving store environments and pumping up flagships, bolstering key merchandise departments and supply chain changes.
Last month, Belk entered into a definitive agreement to be sold to New York-based private equity firm Sycamore Partners for $3 billion.