Saks quarterly loss narrows

NEW YORK Saks Inc. today reported a net loss of $24.6 million, or 17 cents per share, for the second quarter ended Aug. 4. For the prior year second quarter ended July 29, 2006, the company recorded a loss from continuing operations of $53.1 million, or 39 cents per share.

Saks Inc. recorded a net loss of $13.6 million, or 10 cents per share, for the six months ended Aug. 4. For the prior year six months ended July 29, 2006, the company recorded a loss from continuing operations of $41.4 million, or 31 cents per share.

Stephen Sadove, chairman and ceo of the company, noted, "We are pleased with the significant improvement in our operating performance for the second quarter which primarily was driven by strong comparable-store sales growth, substantial gross margin rate expansion, and meaningful expense leverage.

"Our second quarter comparable-store sales increase of 13.2% indicates that our customers are responding to our focused merchandise assortments as well as our customer service and marketing initiatives. We expanded our gross margin rate by 270 basis points for the quarter primarily as a result of reduced markdowns."

For the balance of 2007, the company expects comparable-store sales growth of high-single digits. The company expects to see outsized comparable-store sales growth in August, September, and November, and below-average comparable-store sales growth in October and December.