Saks Says SEC Probe Now Formal

The retailer also says completion of an internal review of accounting issues will be delayed.
By TSC Staff ,

Keep an eye on

Saks

(SKS)

shares Tuesday, following the retailer's disclosure that the

Securities and Exchange Commission

is now undertaking a formal investigation of the company's accounting.

The Alabama-based department store chain late Monday also said an internal investigation that was originally expected to be completed by the end of March will now be ready in April.

The investigation relates to alleged improper collections of vendor markdown allowances in one of Saks Fifth Avenue's six merchandising divisions, the adequacy of an initial internal investigation in 2002, and accounting and disclosure issues that have since arisen.

Saks said it continues to cooperate with the SEC's probe, which had previously been considered informal. The agency notified the company of the new status on March 24.

Earlier this month, Saks also said it will restate earnings between 1999 and 2003 because of the accounting issue. The majority of the activity in question occurred during the 2000 to 2002 fiscal years.

Shares closed at $15.75 Monday.

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