Saks reports Q2 net loss of 12.3 million dollars

Retailer Saks Incorporated announced financial results for

the second quarter and six months ended July 28, 2012. For the second quarter ended July 28, 2012, the company recorded a net loss of 12.3 million dollars, or .08 dollars per diluted share as compared to 8.4 million dollars, or 0.05 dollars per diluted share same period last year.

For the six months ended July 28, 2012, the company recorded net income of 19.8 million dollars, or 0.13 dollars per diluted share, compared to 20 million dollars, or 0.12 dollars per diluted share for the same period in 2011.

For the second quarter, the company’s gross margin rate was 37.2 percent compared to last year’s second quarter rate of 38 percent. For the six months, the gross margin rate was 40.9 percent compared to 41.1 percent in the first six months of last year.

As a percent of sales, SG&A expenses (excluding the certain items) were 27.1 percent in the second quarter this year compared to 26.9 percent in the prior year second quarter and 26.1 percent for the current year six months compared to 25.7 percent for the same period last year.

Consolidated inventories at July 28, 2012 totaled 749.1 million dollars, an 8.7 percent increase over the prior year. Inventories increased 5.3 percent on a comparable stores basis. At quarter end, the company had approximately 139 million dollars of cash on hand and no direct outstanding borrowings on its revolving credit facility. During the quarter, the company repurchased 79 million dollars of common stock (approximately 8 million shares at an average price per share of 9.90 dollars) with cash on hand.

The company expects comparable store sales growth to be in the mid-single digit range for the second half of the fiscal year. Based upon current inventory levels and composition and the company’s promotional calendar and permanent markdown cadence, the company expects its year-over-year gross margin rate to increase approximately 25 to 50 basis points in the second half of the fiscal year. Share counts used in earnings per share calculations are expected to fluctuate by quarter during the year based on income levels, convertible debt, and equity awards.

Headquartered in New York, Saks Incorporated operates 45 stores in 23 states of USA, as well as four leased international stores.