Expenses Drive Belk Q1 Net Down 30 Percent

CHARLOTTE, N.C.-Rising expenses and reduced margin offset a sales gain to reduce Belk's first-quarter net income by 30 percent, to $28.2 million.

Selling, general and administrative expenses were up 9.9 percent in dollars and 117 basis points as a percentage of sales, to 26.8 percent. A Belk statement said the expense increase came primarily from the retailer's investments in "strategic initiatives." Gross margin fell 128 basis points to 32.5 percent, further slimming the bottom line.

Net sales in the quarter, which ended on May 4, rose 5.1 percent to $955.8 million, including a gain of 5.2 percent in same-store sales. Looking inside the top line, Belk's e-commerce sales jumped 67 percent in the quarter, boosting same-store sales by 1.6 percent.

Tim Belk, Belk's chairman and CEO, said that while the bottom line was affected by the extra expenses, the investments made in the business have helped boost sales growth. "While those investments will increase our expense in the short term, we expect them to generate strong future returns," Belk said.

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.


  • 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


    September 2017


    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.


    •  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.