Saks posts smaller Q1 loss than expected

New York City Saks reported a loss for its first quarter Tuesday amid the struggling economy.

Saks said it lost $5.1 million in the first quarter ended May 2, compared with a profit of $17.3 million a year earlier.

Revenue fell 27% to $621.3 million, from $850 million a year earlier. Same-store sales dropped almost 28%.

“Although the sales environment remains extremely difficult, we are carefully managing inventories, expenses and capital spending, and through these actions our first-quarter operating performance exceeded expectations,” chairman and CEO Stephen I. Sadove said in a statement.

He added that the retailer is taking necessary actions to “emerge as an even stronger company once the economic conditions improve.”