Saks loss wider than expected
NEW YORK |
NEW YORK (Reuters) - Luxury U.S. department store operator Saks Inc (SKS.N) posted a wider-than-expected quarterly net loss on Tuesday, as even upscale shoppers curbed spending due to the financial crisis.
The New-York based company said its net loss nearly doubled to $42.8 million, or 31 cents per share, in the third quarter that ended November 1, from $21.6 million or 14 cents per share, a year earlier.
Excluding one-time items worth $24.5 million, Saks' loss was 13 cents per share. On that basis, analysts on average were expecting a loss of 3 cents per share, according to Reuters Estimates.
The operator of Saks Fifth Avenue stores said quarterly net sales fell to $698.0 million from $796.1 million a year ago.
"Our sales results and operating performance in the third quarter were well below our initial expectations, reflecting rapidly deteriorating macroeconomic conditions throughout the period," Saks Chief Executive Stephen Sadove said in a statement.
The company said it expects capital spending of $75 million in 2009, a substantial decrease from its 2008 spending level of about $125 million.
Saks is closing its Club Libby Lu stores that cater to young girls and tightening its inventory as shoppers spend less due to job uncertainty, falling home values and stripped-down pension portfolios.
(Reporting by Martinne Geller, editing by Maureen Bavdek)
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