Earnings Preview: Saks Incorporated

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 |  About: Saks Incorporated (SKS)
by: Theflyonthewall

Saks Incorporated (NYSE:SKS) is expected to report Q3 earnings before the market open on Tuesday, November 17 with a conference call scheduled for 10 am ET.

Guidance

Analysts are looking for a loss of 12c on revenue of $624.54M. The consensus range is (18c)-(7c) for EPS, and revenue of $619.18M-$629.02M, according to First Call. The retailer's September same-store sales just missed estimates and were down 11.6%, while October SSS beat estimates, rising 0.7%. In September, the company said Q3 SSS would be weaker than Q4 SSS, and 2H09 SSS are expected to be down to the mid-to-high single digit range. Recently, the Wall Street Journal reported that the high end retailer is testing online "private event" sales of discounted designer goods. In an October interview with Reuters, CEO Steve Sadove said that the company will likely not provide customers with "drastic holiday discounts" like last year.

Analyst Views

As for the quarter, a JP Morgan analyst said that while management is likely "on the right track" to return to profitability, "patience" will be required from these levels. The firm said Saks has already achieved much of the easy to implement cost-cutting efforts, and that luxury sales will ultimately recover from the economic downturn.