Softness Across Categories Hurt Sales At Saks

NEW YORK (AP) — Saks Inc. said Thursday sales at stores open at least a year fell 11.6 percent in September on softness in all merchandise categories, as even more-affluent shoppers continue to scale back on their luxury fashion purchases.

Analysts polled by Thomson Reuters expected a smaller sales dropoff of 11.1 percent.

These sales figures are a key indicator of retailer performance since they measure growth at existing stores rather than newly opened ones.

Total sales for the period ended Oct. 3 slipped 10.2 percent, to $242.1 million.

Saks said results for its online division, Saks Direct, and Saks Off 5th, its outlet brand that offers discount designer clothing and accessories, were relatively strong during the month.

But the company maintained that it will have a mid-to-high single-digit decline in sales at stores open at least a year during the second half of the fiscal year. The retailer anticipates third-quarter results will be softer than those of the fourth quarter.

Sales at stores open at least a year sagged 15 percent for the quarter to date, while total sales declined 13.5 percent to $402.9 million.

Year-to-date sales at stores open at least a year slumped 20.6 percent, while total sales slipped 19.7 percent to $1.57 billion.

Saks runs 53 Saks Fifth Avenue stores and 54 Saks Off 5th stores.