Syms Q3: Profits Up, Sales Down

NEW YORK – Syms got more from less in its third quarter.

Net income during the three months ended Nov. 25 rose 69.8% – to $2 million, or 14 cents a share, from $1.2 million, or 8 cents, despite declines in net and same-store sales.

Overall revenues during the quarter dropped 2.6% to $72.8 million from $74.7 million in last year’s period, and same-store sales declined 1.5%.

However, an increase in gross margin ratio – to 41.5% from 40.0% – helped generate the profit surge.

Aided by a $10.4 million gain on the sale of stores in Dallas, Tex., and Rochester, NY, net income for the nine months skyrocketed more than six-fold to $6.4 million, or 44 cents a share, from $1 million, or 7 cents. The Dallas store was replaced by a leased location in nearby Plano, Tex.

Sales for the year-to-date dipped 0.9% to $201.6 million from $203.6 million and were off 2% on a same-store basis.

Syms operates 36 off-price apparel stores and is based in Secaucus, NJ. It doesn’t report its monthly sales.