Saks (NYSE:SKS) is expected to report Q4 earnings before the market open on Wednesday, February 25, with a conference call scheduled for 10:00 am ET.
Analysts are looking for a loss of (30c) on revenue of $859.44M. The consensus range is (37c)-(27c) for EPS, and revenue of $833.27M-$920M, according to First Call.
In January, the company announced plans to lay off 9% of its total workforce, the elimination of 2009 merit-based wage increases for the entire workforce, and the suspension of 401(k) Plan company-matching contributions. These cost reductions are expected to total $50M-$60M. The Wall Street Journal reported on February 9 that Saks has adopted a new strategy of deep discounts. CEO Stephen I. Sadove believes the deep discounts has helped his company avoid massive losses and to make sure the company survives. At the same time, Saks still said its January sales fell 24%, and Sadove acknowledges the company may have cut too much in some areas.
Barclays analyst Robert S. Drbul expects results will be pressured by weak demand, weak traffic, low inventory and heavy discounting, but is encouraged by the management of expenses.