Belk Net Drops, Sales Up in Q3

BelkCHARLOTTE, N.C.-The cost of strategic initiatives caused Belk's net income for the third quarter to drop 67 percent. Sales increased 2.8 percent in the period ending Nov. 2.

Net income for the third quarter was $3.6 million, compared to $11.1 million for the same prior-year period. Net income excluding non-comparable items was $4.6 million for the period, compared to $9.8 million for the same prior-year period, a 53 percent drop. The decrease was primarily the result of expenses associated with the company's investments in strategic initiatives during the period.

Net sales for the 13-week period increased 2.8 percent to $860.7 million compared to the prior-year period. Comparable store sales grew with a 3.5 percent increase. The sales increase for the period resulted primarily from a continuation of strong e-commerce sales and execution of the company's key strategies, Belk said.

"Comparable sales grew 3.5 percent in the quarter, aided by colder weather and the investments we have made in the business, including store remodels, e-commerce and supply chain," said Tim Belk, chairman and CEO. "November is the 'go live' month for a new technology platform which includes replacement of much of our IT infrastructure and a new merchandising system. In addition, we are testing technology to fulfill belk.com orders from stores to support our digital business, which grew 45 percent in the quarter. These investments will add expense and impact earnings over the next 18 months."

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

  • Von Tobel Cites Brass Textures Among Top Trends

    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 cover for September 2017

    HFN's DIGITAL EDITION

    September 2017


    COVER STORY:

    2017 State of the Industry Report
    Cautious Optimism, Mixed Results

    Many expected 2016 would be a banner year, but the political and economic climate softened consumer confidence. It was also a year consumers spent more lavishly on home remodeling rather than decorating.


    ALSO IN THIS ISSUE:

    •  TJX Unveils First U.S. Homesense Store - In a time when retailers are reducing store counts, TJX continues to get physical.
    •   Ikea’s Fluid Spaces - The retailer’s new intros reflect multifunctional rooms.
    •  N.Y. Home Fashions Market Preview - Textile textures get soft and cozy, colors warmer.