Saks posts 4Q loss

NEW YORK Saks Inc. posted a net loss of $98.8 million, or 72 cents per share, for the fourth quarter. For the prior year fourth quarter ended Feb. 2, 2008, the company recorded net income of $39.5 million, or 26 cents per share.

For the fiscal year ended Jan. 31, 2009, the company recorded a net loss of $154.9 million, or $1.12 per share. For the prior fiscal year ended Feb. 2, 2008, the company recorded net income of $47.5 million, or 31 cents per share.

Stephen Sadove, chairman and CEO 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.”

Saks' comparable-store sales declined 15.3% in the fourth quarter, which compares to a 9% comparable-store sales gain reported in the same period last year.

Sadove commented, “It is our expectation that the economic environment will remain extremely challenging through 2009, if not beyond, and we have planned accordingly. We continue to focus on what we can control, and I am pleased with how our organization has risen to the challenge. I am confident we have taken and will continue to take the decisive actions needed in response to the environment and to better position the company for the future when economic conditions improve. We continue to make targeted investments in our strategic merchandising, marketing, and selling initiatives.