Margins aid Belk Q1 income

Charlotte, N.C. – Investments in higher margins and topline growth helped boost net income at Belk Inc. 13% to $21.8 million in the first quarter of fiscal 2015 from $19.3 million in the same period a year earlier. Net sales were $985 million, up 3% from $955.1 million.



Same-store sales rose 3.3%. The strongest merchandise categories were men’s and women’s apparel, especially activewear, across all areas. The company’s online sales increased 37%, positively affecting same-store sales by 2.1%.



Belk has invested more than $600 million in key strategic initiatives in the last three fiscal years, including a comprehensive omnichannel initiative that will enable Belk to connect seamlessly with customers regardless of where they are, offer multiple ways to provide what they want, enhance their in-store shopping experience, and create more personalized customer interactions. Belk is also investing in a flagship strategy, opening stores in new and existing markets and remodeling existing stores and key merchandise departments.



Other investments include supply chain initiatives that align distribution capabilities to maximize sales and service, IT that delivers new business capabilities for growth and profitability, and customer service. According to Belk, these investments have an ongoing impact on earnings.



“First quarter sales remained strong, continuing the trend we saw in the fourth quarter of fiscal year 2015,” said Tim Belk, chairman and CEO. “E-commerce continues to be our fastest growing business.”