Department store group Saks' third-quarter profit has edged up slightly, as a gain from insurance proceeds offset expenses connected to Hurricane Katrina and the sale of business assets.

Quarterly net income totalled $200,000 compared to a loss of $30.4 million last year. Net sales slipped 11.2 per cent to $1.32 billion from $1.48bn a year ago, reflecting the sale of the Proffitt's and McRae's store chains earlier this year. Same-store sales rose 2.7 per cent during the quarter.

For the nine months ended 29 October, net income totalled $24.6m compared to a loss of $35.6m last year. Nine-month net sales fell 4.4 per cent, while same-store sales grew 2.2 per cent.