Saks Reports Higher Sales

Saks Inc. (SKS - Analyst Report) reported total sales of $167.9 million for the month of July 2010, which was 4.8% higher than $160.2 million in the same period a year ago. The company’s comparable store sales grew 6.4% for the month.

During the four week period, the company saw growth in women’s shoes and sportswear, handbags, dresses, men's apparel, footwear and accessories. However, in the months of May and June, Saks spent less on promotional activity.

Saks’ sales totaled $583.4 million for the second quarter. On a quarter-to-date basis, sales were up 4.8% from $556.4 million posted in the comparable period of last fiscal year. Comparable store sales jumped 4.6% for the quarter. This was due to a 2.5% rise in comparable store sales in June and a 5.8% leap in comparable store sales in May.

The company now estimates comparable store sales growth in the mid-single digit range for fiscal 2010, including single digit expansion in the second quarter and mid-single digit increase in the second half of the fiscal year. 


For the first six months of fiscal 2010, the company’s sales were $1.24 billion, compared to $1.17 billion in the same period of fiscal 2009, representing a year-over-year rise of 5.9%. Year-to-date comparable store sales climbed 5.4%. 


Saks will announce its second quarter results on Aug 17, 2010. Saks should see a substantial improvement in sales in the quarter as the company reported a rise in sales in all the three months of the quarter. However, given the uncertainty in the economy, customers are still staying away from discretionary purchases.

We currently have a Zacks #3 Rank on the stock, which indicates a short-term Hold rating.

Read the full analyst report on SKS