Belk 2Q profit up by double-digits despite sales decline
-- Home Textiles Today, 8/27/2009 4:02:00 PM
Charlotte, N.C. – Improved margins and cost controls helped Belk overcome softer sales and a deliver a 14.6% boost in net income during the second quarter.
The regional department store reported $9.4 million in net income for the quarter ended Aug. 1 compared to a profit of $8.2 million in the year-ago period.
Sales at the 307-until retailer fell 8.3% to $760.3 million, with comps off 9.4%. The company cited lower sales volume and the shift of state sales tax holidays in some markets from July to August.
“While sales results reflected a continued weakness in consumer spending for the period, we were pleased to deliver increased profitability and a significantly improved cash position,” said Tim Belk, chairman and ceo.
The company did not provide further information about its cash position.
For the first half of the fiscal year, profit fell 24.8% to 10.0 million. Sales dropped 7.6% to $1.52 billion, with comps down 8.5%.
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