Belk: From Red to Black in Third Quarter
CHARLOTTE, N.C.-Belk Inc. posted net income of $600,000 for its fiscal third quarter, reversing a net loss from last year's third quarter of $4.2 million.
The department store retailer got help from a net sales increase of 5.9 percent, to $790.7 million, which included a healthy 6.6 percent gain in same-store sales. A Belk statement identified hard home as one of the categories that performed well, along with ladies' shoes, cosmetics and men's apparel. The company also said it experienced sales increases in both its stores and in e-commerce sales.
Belk's gross margin rose nine basis points to 31 percent. Selling, general and administrative expenses increased 1.7 percent in dollars but fell 121 basis points as a percentage of sales, to 29.2 percent.
Saying that the company is "encouraged" by its third quarter, Tim Belk, chairman and CEO, vowed that Belk would continuing investing in its business, including technology, store remodels and expansions.