(Filed Under Financial and General Interest News). Retailer Saks Inc. reported a 5.1 percent increase in total sales to $692.3 million from $658.8 million in the prior year’s period.

The company’s net income fell 51 percent from the same period in 2010, due to last year’s inclusion of a $26.7 million gain related to income tax reserves. Excluding the gain, Saks, Inc. would have recorded a net income of $9.7 million, or 6 cents a share, in the third quarter of 2010. The company reported $17.8 million, or 11 cents a share, for the third quarter of 2011 ended Oct. 31.

Revenue at stores open at least a year rose 5.8 percent, while Saks Direct posted a 24 percent increase in comparable store sales. The gross margin rate came to 44.2 percent, a 160 basis point improvement over the rate of 42.6 percent in the year-ago period.

"I am very pleased with the improvement in our operating performance for the third quarter," stated Saks chairman and C.E.O. Stephen I. Sadove. "Our comparable store sales increase was achieved in spite of further reductions in our promotional activity."

The company anticipates the gross margin rate to fall in the current period, but expects an improved gross margin for the second half and full year, as well as a mid-to-high single-digit percentage rate increase in same-store revenue for the fourth quarter.

Saks, Inc. currently operates over 100 retail locations.

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Published 11-15-2011 by Katherine Rautenberg