On Tuesday, Saks Fifth Avenue chain reported huge loss for the 2Q. According to the report, Saks’ well off customers cut back on apparel in the course of a sluggish economy and it was basic factor behind that wider-than-expected loss.
The operator of luxury goods retailer also predicted lackluster in activity during the rest of the year.
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In premarket trading, Saks shares tumbled around 14 percent, dropping $1.57 to $9.65.
According to Saks, it had to bear 23 cents per share or $ 31.7 million loss during the second quarter that ended on Aug. 2. For the same period a year back, the net loss was reported 17 cents per share or $ 24.6 million as net loss. The retailer revenue dropped 3.5 percent to $669.2 million.
Thomson Reuters tells that the surveys were suggesting a smaller loss of 19 cents per share on the high proceeds of $679.2 million.
Saks says that it expects the store’s operating margins would decline to 2007 levels. However, some items have exclusion from it. The store is also expecting similar sort of sales for the rest of the year: down and unchanged.
Saks’ chairman and chief executive, Stephen I. Sadove states, “We are quite well aware of it that we are continuously facing the headwinds of the retail and economic inactive environment.”
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