Saks sales comparison rises in December, helped by shift of designer clearance event

Saks December sales comparison jumps

NEW YORK — Luxury retailer Saks Inc. said Thursday that sales in stores open at least one year jumped 9.9 percent in December, helped by a designer clearance event, but fell during the overall holiday period.

Analysts surveyed by Thomson Reuters, on average, had expected sales in stores open at least one year to rise just 2.8 percent for the five weeks ended Jan. 2. Saks said total sales for the period rose 11 percent to $393.6 million as the department store retailer shifted a designer clearance event to December from November last year.

For the combined November and December holiday period, however, sales in stores open at least one year fell 7.3 percent. Sales at stores open at least a year are a key measure of retailer performance because they measure growth at existing stores rather than from newly opened ones.

Total sales declined 6 percent to $638.8 million. The strongest categories at Saks Fifth Avenue stores included women’s designer apparel, men’s sportswear, women’s shoes and handbags. Weaker sellers were fine jewelry, lingerie, men’s apparel and accessories and cosmetics.

Year to date, sales in stores open at least one year have fallen 14.8 percent while total sales are down 15 percent to $2.43 billion.

The company expects sales in stores open at least one year will fall in the mid-single digit range in the fiscal fourth quarter.

Saks operates 53 Saks Fifth Avenue stores, 55 Saks Off 5th stores and saks.com.

Shares fell 8 cents to $7.36 in morning trading.