Saks Inc on Tuesday reported higher than expected first-quarter sales, but it warned that investments to launch an e-commerce site for its outlet chain would weigh more on profits than expected.

Saks reported a profit of $20 million, or 13 cents per share, for the quarter ended May 4, versus a year-earlier profit of $32.1 million, or 18 cents per share. Excluding one-time items, Saks had a profit of 19 cents per share.

Saks said sales at stores open at least a year rose 5.9%, while analysts were expecting a 2.6% increase.

The luxury chain said same-store sales for the balance of the year should be up 4% to 6%.