Profits Slacken at Bigger Belk
By Staff -- Home Textiles Today, 9/3/2007 12:00:00 AM
Charlotte, N.C. —
As Southern regional department store chain Belk prepares September grand openings for 25 Parisian stores acquired last year, management is confident that the integration is going well — and it is certainly reflected in second-quarter sales, which were up 20.2% to $879.6 million compared to last year. Comps rose 2.2%.
Profits tightened, however, as the 300-store company reported net income of $7.5 million, down 71.5% from $26.3 million one year ago. "Increased markdowns to keep inventories in line, combined with the Parisian transition, had a negative impact on margins and net income," said Tim Belk, chairman and ceo.
The 25 stores set for grand openings as Belk locations are in Alabama, Arkansas, Florida, Georgia, and Tennessee. The company will also open six new stores on Oct. 17.
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