Saks Incorporated (SKS)

Saks Incorporated (SKS) - Zacks Investment Research

Saks Inc ( SKS , Analyst Report ) reported total sales of $393.6 million for the month of , which was 11.1% higher than $354.4 million in the same period a year ago. The company's comparable store sales grew 99% for the five weeks ended , 2010, as it benefited from a designer clearance event During the five week period, the company saw growth in women's designer and "gold range" apparel, men's sportswear, women's shoes, and handbags 

Saks Incorporated (SKS) - Bill Dreher at Deutsche Bank

The fourth quarter loss, excluding some items, is predicted to narrow to 7 cents a share from 52 cents a year ago, based on analysts' average estimate in a Bloomberg survey. Saks reiterated today its forecast for a "high single digit" decline in fourth quarter comparable sales, in percentage terms. "Saks is on the right track by keeping their inventories lean and returning to exclusivity, and not discounting the product like they did this time last year, which inflated the sales number then," said Bill Dreher , an analyst with Deutsche Bank AG in New York who recommends buying the shares. To contact the reporter on this story: Cotten Timberlake in Washington at ctimberlake@bloomberg.net . 

Saks Incorporated (SKS) - Bill Dreher at Deutsche Bank

"The market has had a negative bias toward the state of consumer spending," said Bill Dreher, senior analyst at Deutsche Bank. "We continue to believe that there are pockets of strength with discount retailing doing very well, with select luxury retailers doing very well, like Nordstrom ( JWN.N ) and Saks, which have brought down their price points." . Specialty apparel chains, however, may face another tough year as they relied on heavy promotions to draw shoppers. "Going through the mall on Friday, the stores that had not been doing as well. 

Saks Incorporated (SKS) - Dan Greenhaus at Miller Tabak

Investors are betting that upscale shoppers will open their wallets this Christmas season after pinching pennies a year ago. Shares in luxury retailers Tiffany, Saks and Nordstrom all rose Wednesday ahead of the official start of the holiday season today, Black Friday. "We're resting our (upbeat outlook) on the upper income consumer, who seems to be holding up pretty well," says Dan Greenhaus, chief economic strategist at Miller Tabak. His thinking: A 64% runup in the Standard & Poor's 500 stock index since has restored some of the wealth lost in last year's financial meltdown, boosting confidence and spending power among the rich. "The vast majority of spending in this country is done by the upper income consumer," Greenhaus says. 

Saks Incorporated (SKS) - Richard Jaffe at Stifel Nicolaus

But retailers have planned for this season's frugality, ordering up to 20% less inventory, making them less susceptible to mid December price slashing. "You clearly aren't going to see the kind of discounting that you saw last year," says Stephen Sadove, chairman and chief executive of Saks Inc. Wayne Hood, an analyst at BMO Capital Markets, agrees: "We're expecting 50% [markdowns] to be kind of the norm this year versus maybe 75% last year," he says (See 10 things to buy during the recession.) . Shoppers who wait too long could be left empty handed as reduced inventory levels will mean fewer sizes, colors and selections of items. "That baby blue cashmere sweater in medium may not be there on Dec. 24," says Richard Jaffe, managing director at Stifel Nicolaus & Co. Still, the deepest discounting will likely come from retailers that sell electronics, books and toys, where competition from online vendors is fierce. 

Saks Incorporated (SKS) - Wayne Hood at BMO Capital Markets

But retailers have planned for this season's frugality, ordering up to 20% less inventory, making them less susceptible to mid December price slashing. "You clearly aren't going to see the kind of discounting that you saw last year," says Stephen Sadove, chairman and chief executive of Saks Inc. Wayne Hood, an analyst at BMO Capital Markets, agrees: "We're expecting 50% [markdowns] to be kind of the norm this year versus maybe 75% last year," he says (See 10 things to buy during the recession.) . Shoppers who wait too long could be left empty handed as reduced inventory levels will mean fewer sizes, colors and selections of items. "That baby blue cashmere sweater in medium may not be there on Dec. 24," says Richard Jaffe, managing director at Stifel Nicolaus & Co. Still, the deepest discounting will likely come from retailers that sell electronics, books and toys, where competition from online vendors is fierce. 

Saks Incorporated (SKS) - Todd Slater at Lazard

In the current quarter, Saks expects sales at stores open at least a year, a key measure of a retailer's financial health, to decline in the high single digits. Saks' luxury consumers are still shopping less frequently, said Lazard Capital Markets analyst Todd Slater, who rates the stock "Sell."  

Saks Incorporated (SKS) - 24/7 Wall Street

Saks Incorporated (NASDAQ: SKS), BJ's Wholesale Club Inc (NYSE: BJ), Gymboree Corp (NASDAQ: GYMB), and Ann Taylor Stores Corp (NYSE: ANN) are all reporting next week. Next Thursday may feel like a retail and apparel earnings bonanza as we have Dick's Sporting Goods Inc (NYSE: DKS), Foot Locker Inc (NYSE: FL), Gap Inc (NYSE: GPS), Sears Holdings Corporation (NASDAQ: SHLD), The Children's Place Retail Stores, Inc (NASDAQ: PLCE), Wet Seal Inc (NASDAQ: WTSLA), and Zumiez, Inc (NASDAQ: ZUMZ) all reporting earnings in one day. We have provided estimates from Thomson Reuters, recent sale store sales data, share performance, and added color on what else to consider where applicable. 

Saks Incorporated (SKS) - Eric Beder at Brean Murray, Carret & Co.

Department store chains and teen retailers in particular disappointed investor expectations, while such disparate companies as apparel retailer Gap and luxury store chain Saks Inc performed better than hoped as consumers return to spending selectively. "October results are not going to give investors the overall warm and fuzzy that we're on track for a strong Christmas," said Brean Murray, Carret & Co analyst Eric Beder, "It looks like we're on track for kind of a mediocre season right now based upon October." Retail shares reflected the mixed results. Teen retailers Aeropostale and American Eagle Outfitters fell 13.6 percent and 12 percent, respectively. 

Saks Incorporated (SKS) - Eric Beder at Brean Murray, Carret & Co.

Department store chains and teen retailers in particular disappointed investor expectations, while such disparate companies as apparel retailer Gap and luxury store chain Saks Inc performed better than hoped as consumers return to spending selectively. "October results are not going to give investors the overall warm and fuzzy that we're on track for a strong Christmas," said Brean Murray, Carret & Co analyst Eric Beder, "It looks like we're on track for kind of a mediocre season right now based upon October." Retail shares reflected the mixed results. Teen retailers Aeropostale and American Eagle Outfitters fell 13.6 percent and 12 percent, respectively.