Saks records profit in 1st qtr, beats forecasts

NEW YORK (AP) - Luxury retailer Saks Inc. returned to profitability in its first quarter by offering fewer promotions and cutting inventory as its revenue rose.

Saks dramatically pulled back on ordering as the recession took hold, and it has worked with designers to lower its selling prices, and it says both moves helped its results.

For the period that ended May 1, Saks earned $18.8 million, or 11 cents per share. It reported a loss of $5.1 million, or 4 cents per share, a year earlier.

Revenue climbed 7 percent to $667.4 million.

Excluding one-time charges of a penny per share, Saks' net income was 12 cents per share.

Wall Street expected a smaller profit of 5 cents per share on revenue of $662.9 million.