Three major U.S. department stores were profitable in the first quarter, despite lower same-store sales stemming from such factors as the war in Iraq, destructive weather and a stagnant U.S. economy.
Saks Inc. (Birmingham, Ala.), whose department stores include upscale Saks Fifth Avenue, Proffitt's and McRae's, said first-quarter earnings before one-time items fell to $12.6 million, down from $21.9 million a year earlier. Total sales slipped to $1.38 billion from $1.43 billion, while sales at stores open at least a year fell 3.4 percent.
Dillard's (Little Rock, Ark.) said its net income for the quarter totaled $24.3 million, up from a loss of $472.2 million in the year-ago period. (Much of that loss is due to a non-cash goodwill impairment charge of $530.3 million.) Total sales for its most recent quarter fell 5 percent to $1.8 billion, while same-store sales also declined 5 percent.
Nordstrom Inc. (Seattle) swung to a fiscal first-quarter profit, reporting a net income of $27.2 million, compared with a year-earlier net loss of $24.6 million that included $55 million in impairment costs and other charges.
Nordstrom's net sales rose to $1.34 billion, up 7.8 percent from a year earlier. But same-store sales declined 1.4 percent in the quarter. Nordstrom said it expects same-store sales to be little changed for the second quarter and fiscal year.