Saks reported a narrower Q2 loss of $24.6 million, or -$0.17/share, on sales growth of 15% to $694.1M. Analysts had expected -$0.15 on sales of $684.6M, on average. Same-store-sales increased 13.2% during the quarter and were up 14.9% in July. Saks' bottom line was negatively impacted by employee retention, severance and transition costs. In a press release, CEO Stephen Sadove commented, "Nearly all merchandise categories performed well in the quarter ..." adding that Saks "generated solid performance across all geographies and store sizes." Sadove is "very pleased with the progress made year-to-date on many fronts," but said the company "still has a long way to go." Saks is targeting an operating margin of about 4% in 2007 and aims to double it over the next three years. Comparable store sales are expected in the high-single digits. Shares of Saks were last up 1.2% to $18.15 in thin pre-market trading after climbing 3% to $17.94 on Monday.
Sources: Press release, Bloomberg, MarketWatch
Commentary: July Same-Store Sales Roundup • 10 Stocks That Should Shine In The Next 12 Months • Saks: The Revival is Worth Watching
Stocks/ETFs to watch: SKS. Competitors: M, JNY
Seeking Alpha's news briefs are combined into a pre-market summary called Wall Street Breakfast. Get Wall Street Breakfast by email -- it's free and takes only seconds to sign up.