Saks Fifth Avenue Sales Slide
As the holiday season looms ever closer, department stores are hoping against hope for a return to spending exuberance. And they will need the numbers. Department store operator Saks Fifth Avenue announced a wider-than-expected quarterly net loss today as the economic slowdown has now reached the more upscale shopper. The company reports that its net loss nearly doubled to $42.8 million, or 31 cents per share as compared to $21.6 million or 14 cents per share, a year earlier. Quarterly net sales fell to $698.0 million from $796.1 million a year ago. The company is planning cut its capital spending in 2009, from around $125 million to $75 million and is closing its Club Libby Lu stores that cater to young girls. The store will likely cut back on the more risky, trendy items and focus on classics that are more likely to sell.