Belk Hits Black in Third Quarter

CHARLOTTE, N.C.-Belk posted net income of $400,000 in the third quarter, reversing the $23.5 million net loss the department-store retailer reported in the third quarter of last year.

The company accomplished this despite a 2 percent decrease in net sales for the quarter (which included 2.1 percent drop in same-store sales), which totaled $728 million. According to a statement from Belk, it was able to return to profitability by controlling inventories and expenses, and improving its gross margin. Selling, general and administrative expenses were slimmed by 8.3 percent, and cost of goods sold by fell 6. 8 percent. The latter resulted in a 360 basis-point rise in gross margin.

"We believe that the operating environment has stabilized, and merchandise margins have improved," said Tim Belk, chairman and chief executive officer.

Nevertheless, the company said that consumers continued to spend cautiously in the third quarter.

HFN Staff | News & Commentary

HFN provides detailed information on the key home classifications: Housewares, Tabletop, Floor Covering & Rugs, Furniture, Home Textiles, Lighting, Home Decor, Mattresses & Bedding, Gifts, Major Appliances and Consumer Electronics as well as Business, Finance and Retail.

Videos

  • Patti Carpenter Talks Color and its Importance in the Home

    Camera Icon   More Videos

Subscribe to
HFN Omnichannel
Receive the news you need to know about the trends in the industry delivered right to your inbox.

Current Issue

  • HFN August 2017 cover

    HFN's DIGITAL EDITION

    August 2017


    COVER STORY: Sharpening the Focus on Millennials

    Find out what makes Millennials tick when it comes to home decorating, shopping and at-home entertaining with HFN's annual consumer study. Turns out, Millennials favor the in-store shopping experience.


    ALSO IN THIS ISSUE:

    • Power of the People - Crowdfunding campaigns provide needed capital, feedback for home and housewares product launches.
    •  Omnichannel Retailing: Visual Search Takes Off - Learn how voice and visual search are revolutionizing product discovery.