Upscale retailer Saks Inc. reported lower-than-expected quarterly profit as markdowns pressured gross margin.
Earnings rose to $18.3 million, or 13 cents a share, for the fiscal first quarter ended May 3, from $11 million, or 7 cents, a year earlier.
Analysts had expected 17 cents a share, according to Reuters Estimates.
The operator of Saks Fifth Avenue stores said sales rose 9% to $862.4 million as consumers responded to promotions. Sales at stores open at least a year rose 8.4%.
Saks dropped 93 cents, or 6.6%, to $13.20.