Interviews
News Flash
Iconic retailer Saks reports net loss of $154.9 million
26 Feb '09
5 min read
For the prior fiscal year ended February 2, 2008, the Company recorded net income of $47.5 million, or $.31 per share. Excluding the after-tax loss from discontinued operations of $3.2 million, or $.02 per share, the Company recorded income from continuing operations of $50.7 million, or $.33 per share.
The prior fiscal year included the following after-tax items totaling net charges of $16.0 million, or $.10 per share:
• expenses of approximately $18.1 million for retention, severance, and transition costs,
• expenses of approximately $3.7 million associated with the previously disclosed investigations as well as the settlement of two related vendor lawsuits,
• a loss on extinguishment of debt totaling $3.4 million related to the repurchase of $106.3 million of senior notes,
charges of $2.7 million related to asset impairments and dispositions,
• a $0.8 million expense related to a state tax adjustment,
• a gain of $8.1 million associated with proceeds from an insurance settlement related to the New Orleans store,
• a gain of $1.6 million related to an OFF 5TH store closing and the sale of an unused support facility, and
• a $3.0 million state income tax valuation adjustment (credit).
Comments on the Fourth Quarter and Fiscal Year Ended January 31, 2009:
Stephen I. Sadove, Chairman and Chief Executive Officer of the Company, noted, “Our sales results and operating performance in the fourth quarter reflected deteriorating macroeconomic conditions. Although our aggressive promotional actions significantly eroded the fourth quarter gross margin rate, we made meaningful progress in reducing inventory levels. As we began the quarter, there was a considerable disconnect between our 4.4% comparable store inventory increase and sales trends. Through promotional activity and partnering with vendors to cancel orders and return product where appropriate, we ended the fiscal year with a 14.6% comparable store inventory decrease.”
The Company's comparable store sales declined 15.3% in the fourth quarter, which compares to a 9.0% comparable store sales gain reported in the same period last year. Sadove commented, “During the quarter, the Company experienced continued weakness across all geographies, merchandise categories, and channels of distribution. Soft performance in the Company's New York City flagship store which began in the third quarter persisted into the fourth. Women's apparel continued to be the most challenging merchandise category.”
Saks Direct posted a 1.3% comparable store sales decline in the quarter, versus an increase of over 40% in last year's fourth quarter, marking a slowdown from several years of sustained outsized growth. Saks Direct's comparable store sales grew approximately 16% for the current fiscal year. OFF 5TH's comparable store sales performance continued to show relative strength, although sales trends slowed over the last few quarters.
Click here to view more:
The prior fiscal year included the following after-tax items totaling net charges of $16.0 million, or $.10 per share:
• expenses of approximately $18.1 million for retention, severance, and transition costs,
• expenses of approximately $3.7 million associated with the previously disclosed investigations as well as the settlement of two related vendor lawsuits,
• a loss on extinguishment of debt totaling $3.4 million related to the repurchase of $106.3 million of senior notes,
charges of $2.7 million related to asset impairments and dispositions,
• a $0.8 million expense related to a state tax adjustment,
• a gain of $8.1 million associated with proceeds from an insurance settlement related to the New Orleans store,
• a gain of $1.6 million related to an OFF 5TH store closing and the sale of an unused support facility, and
• a $3.0 million state income tax valuation adjustment (credit).
Comments on the Fourth Quarter and Fiscal Year Ended January 31, 2009:
Stephen I. Sadove, Chairman and Chief Executive Officer of the Company, noted, “Our sales results and operating performance in the fourth quarter reflected deteriorating macroeconomic conditions. Although our aggressive promotional actions significantly eroded the fourth quarter gross margin rate, we made meaningful progress in reducing inventory levels. As we began the quarter, there was a considerable disconnect between our 4.4% comparable store inventory increase and sales trends. Through promotional activity and partnering with vendors to cancel orders and return product where appropriate, we ended the fiscal year with a 14.6% comparable store inventory decrease.”
The Company's comparable store sales declined 15.3% in the fourth quarter, which compares to a 9.0% comparable store sales gain reported in the same period last year. Sadove commented, “During the quarter, the Company experienced continued weakness across all geographies, merchandise categories, and channels of distribution. Soft performance in the Company's New York City flagship store which began in the third quarter persisted into the fourth. Women's apparel continued to be the most challenging merchandise category.”
Saks Direct posted a 1.3% comparable store sales decline in the quarter, versus an increase of over 40% in last year's fourth quarter, marking a slowdown from several years of sustained outsized growth. Saks Direct's comparable store sales grew approximately 16% for the current fiscal year. OFF 5TH's comparable store sales performance continued to show relative strength, although sales trends slowed over the last few quarters.
Click here to view more:
Saks Incorporated
Popular News
Leave your Comments
Editor’s Pick
Esteemed Clients
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
