Saks (SKS) Q2 Loss Comes in Narrower than Expected on Tough Year-Over-Year Comps

August 14, 2012 9:28 AM EDT
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Things its good to be today: sunshine, butterflies, rainbows, and luxury retailers.

Following a solid Q113 performance from peer Michael Kors (NYSE: KORS), Saks, Inc. (NYSE: SKS) is indicated lower following better-than-expected results for its own quarterly report.

Revenue at the retailer rose 5.1 percent to $704.1 million with comps improving 4.7 percent. Net loss widened to $12.3 million, or 8 cents per share.

Street consensus views called for revs of $704.0 million and a loss of 9 cents per share.

Saks improvement in comps comes following a strong 15.5 percent gain in the same period last year.

Saks' NYC Flagship store had positive comps, but lagged its Fifth Avenue location. Strong company-wide sales were realized in women’s and men’s contemporary apparel, women’s and men’s shoes, fashion and fine jewelry, and cosmetics and fragrances.

"As expected, we experienced gross margin rate deterioration and SG&A deleverage (excluding certain items) during the quarter and first half," commented CEO Stephen I. Sadove. "While the overall near-term macro environment remains uncertain, we are very excited about the future of Saks and our ability to generate continued growth. We remain focused on executing our core merchandising, service, and marketing strategies, and we are strategically and prudently evolving our business to fully embrace omni-channel retailing through a series of infrastructure and systems enhancements over the next few years."

Guidance for fiscal 2012 was reaffirmed.

Shares are indicated lower ahead of the bell, but investors might want to keep an eye on Saks with its conference call expected to start at 9:30am EDT.

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