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Belk Q1 Profit Down 32%, Sales Flat

In Industry News, Reports, What's New by Jeff PrineLeave a Comment

BelkCharlotte, NC—Belk Inc. reported Wednesday that its Q1 profit plummeted 32% due to flat sales and increased expenses.

For the quarter ended May 3, the department store company posted net income of $19.3 million compared with $28.2 million a year ago. Net revenue was $955 million flat compared with the same quarter a year ago.

Comparable store sales were down 0.2%. Besides the flat sales, Belk’s expenses grew as the company invested in store remodels and expanding e-commerce capabilities.

Belk has a three year plan for as much as $700 million in spending on these improvements.

“Although the investments we are making in the Company will continue to impact our short term profitability, we are building a solid foundation for long term growth and success,” said CEO Tim Belk.

Online sales grew 42% at Belk, but remained a small part of the company’s overall revenue. Belk said online sales contributed 1.8% to the quarter’s comp sales. Belk also repurchased 1.96 million shares of its common stock for $94.3 million in a transaction completed on May 21.

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