New York: Saks Inc reported a stronger-than-expected quarterly profit on Tuesday as luxury spending rebounded strongly and the upscale retailer benefited from less discounting.
Shares were up 6.5% in light premarket trading on Tuesday on the New York Stock Exchange.
Saks reported net income of $18.8 million, or 11 cents per share, during that quarter that ended 1 May, compared to a loss of $5.1 million, or 4 cents a share, a year earlier.
Excluding severance and store closing costs, Saks reported a profit of 12 cents per share. On average, analysts were expecting first-quarter profit of 5 cents per share on sales of $662.9 million, according to Thomson Reuters.
Saks said sales at stores open at least a year, a gauge of retail health known as same-store sales, rose 6.1% during the first quarter.
Looking ahead, Saks forecast same-store sales would rise in the “low-to-mid single digit” range for the second quarter, and in the “mid-single digit range” for its full fiscal year.
Overall sales were up 6.9% to $667.4 million. Gross margins rose 4.4% points to 43.1% from a year earlier, as the company increased full-price selling.