Upscale retailer Saks Inc. (NYSE: SKS) posted a lower quarterly profit on Monday, dragged down by restructuring costs and other charges, but sales were up.
Saks earned $11 million, or 7 cents per share for the quarter ending May 5, down 85 percent from the 77.9 million, or 57 cents per share a year ago. Revenue came in at $792.7 million, up 15.9 percent on a same-store sales boost of 14.4 percent.
Analysts polled by Thomson Financial expected the company to earn 16 cents on revenue of $787 million.
The company's quarter included a charge of $13.5 million, or 9 cents per share related to downsizing and other restructuring. It also repurchased $95.9 million of senior notes.
The firm remained upbeat for the future saying it expects same-store sales to grow at a low double digit percentage rate in the second quarter and mid-to-high single digits in the fall.
I remain confident that an 8 percent operating margin is attainable within the next three years or so, and we are very pleased with the progress we are making toward that goal, Steve Sadove, Saks Chairman and CEO said in a statement.
Shares in Saks fell 20 cents, or 0.88 percent, to $22.49 in early trading on the New York Stock Exchange.