• Q3 adjusted profit up 83% to US$17.8m
  • Net sales up 5.1% to $692.3m
  • Comparable store sales up 5.8%

Department store operator Saks nearly doubled its third quarter adjusted profit, thanks to a 5.1% sales increase and increased full-price selling.

The company’s flagship Saks Fifth Avenue store was boosted by strong performances from women’s contemporary apparel, women’s shoes, men’s apparel, shoes and accessories. Meanwhile, Saks Direct recorded a 24% increase in comparable store sales.

Gross margins were up from 42.6% to 44.2%, thanks to a combination of increased full-price selling and reduced promotional activity.

“Our 5.8% comparable store sales increase for the third quarter was achieved in spite of further reductions in our promotional activity,” said Stephen Sadove, company chairman and CEO.

“We continue to be optimistic about the future of luxury retailing in general and for Saks Fifth Avenue in particular, and we believe Saks is well-positioned for additional operating margin improvement over time.”

Saks expects to record fourth quarter comparable store sales growth in the mid to high single-digit range.