Holiday, online sales boost Belk Q4 profits; opening two stores

Charlotte, N.C. – Belk Inc. credited strong holiday sales for helping to boost net income in the fourth quarter of fiscal 2014 8% to $104.4 million from $96.3 million the same period a year earlier.



Net sales rose 5% to $1.39 billion from $1.32 billion, driven by a 2.4% increase in same-store sales and 42% surge in online sales.



In 2015, Belk will open new stores in Bristol, Tennessee (The Pinnacle) and Jacksonville, Florida (Atlantic North Shopping Center) to be completed in March. The retailer will also undertake a major expansion and remodel of its flagship stores in Columbia, South Carolina (Columbiana Centre) and Franklin, Tennessee (CoolSprings Galleria, includes the opening of a men’s and kids store in the mall).



In addition, Belk will invest an additional $27.5 million to continue to build out capabilities in its e-commerce fulfillment center in Union County, South Carolina.



For the full year, Belk’s net income for fiscal 2015 dropped 8% to $146.1 million from $158.5 million the prior fiscal year, with the decrease credited primarily to higher expenses associated with the company’s investments in strategic initiatives.



Net sales totaled $4.11 billion, an increase of 2% compared with net sales of $4.04 billion in fiscal 2014. Same-store sales rose 1.5%. Online sales increased 43% for fiscal 2015 and positively affected the company’s comparable store sales by 2.1% for the period.



“Despite challenges early in the year, we ended fiscal 2015 with strong holiday sales and are pleased to report our fifth consecutive year of positive comparable store sales,” said Tim Belk, chairman and CEO. “Although our annual earnings continue to be impacted by additional expense associated with key strategic initiatives, we are encouraged by the recent trends and believe we are well positioned for the year ahead.”