Saks (NYSE:SKS) is expected to report Q1 earnings before the market open on Tuesday, May 19 with a conference call scheduled for 10:00 am ET.
Analysts are looking for a loss of (26c) on revenue of $619.99M. The consensus range is (30c)-(23) for EPS, and revenue of $608M-$646M, according to First Call. At April's Telsey Group Consumer Conference, Saks said it is controlling "what it can", such as inventory and expenses. Saks is assuming a same-store sales decline for 2009 in the low-to-mid teen percentage range. Additionally, the company sees comparable inventory levels for 2009 down in the low-to-mid-teen percentage range and $60M in capital spending.
Saks, which said it has ample liquidity on its $500M revolving credit facility, said it is planning to reduce inventory purchases by 20% this year. For the long term, Saks said it's structuring the company for a lower sales base. Saks recently said its April SSS fell 32%, more than analysts expected, on April sales of $238.7M. Saks Fifth Avenue stores were weak across all merchandise categories in April, while Saks Direct and OFF 5TH showed some strength.