Belk produces double-digit net income increases in Q1

Comps up 7.4%

HTT Staff -- Home Textiles Today, 5/31/2012 1:52:13 PM

Charlotte, N.C. - Crediting higher sales and margin along with improved expense leverage, Belk Inc. posted a 26.3% increase in net income in its first quarter.

Sales were up 7.2% to $909.8 million, and comps increased 7.4%. Net income was $40.3 million.

Among the highest growth rate merchandise categories during the quarter were home, women's sportswear and men's.

Belk's results were "above expectation," said Tim Belk, chairman and ceo. "Color in the assortment has been a powerful story this spring. We were well positioned with inventory in early March, and our customers responded."

On the real estate front, Belk said it will invest about $75 million in the current fiscal year for expansion and remodeling projects in 29 states. Two stores will be relocated into new store buildings, four stores will be expanded and remodeled, and 13 stores will be remodeled.