Exhibit 99.1
SAKS INCORPORATED ANNOUNCES NOVEMBER
COMPARABLE STORE SALES
| | | | |
| | Contact: | | Julia Bentley |
| | | | (865) 981-6243 |
| FOR IMMEDIATE RELEASE | | | | www.saksincorporated.com |
New York, New York (December 4, 2008)—Retailer Saks Incorporated (NYSE: SKS) (the “Company”) today announced that owned sales totaled $332.9 million for the four weeks ended November 29, 2008 compared to $347.6 million for the four weeks ended December 1, 2007, a 4.2% decrease. Comparable store sales decreased 5.2% for the month.
On a year-to-date basis, for the ten months ended November 29, 2008, owned sales totaled $2,543.4 million compared to $2,611.2 million for the prior year ten-month period ended December 1, 2007, a 2.6% decrease. Comparable store sales decreased 2.6% for the ten-month period.
In the prior year, comparable store sales increased 25.7% and 14.5% for the fiscal November and ten-month periods, respectively.
For November, the strongest businesses and categories at Saks Fifth Avenue were women’s designer apparel, handbags, women’s and men’s shoes, men’s contemporary apparel, and Saks Direct. The weakest categories at Saks Fifth Avenue for November were women’s bridge, petite, and Salon Z (large size) apparel; women’s outerwear; men’s accessories; jewelry; fragrances and cosmetics; and intimate apparel.
The Company continues to face very challenging macroeconomic and retail conditions.
November 2008 sales were also negatively affected by the retail calendar shift, with seven fewer post-Thanksgiving shopping days than last year. This was partially offset by sales generated from an increased level of promotional activity and markdowns in November. Customers continued to shift purchases from regular price to promotional and clearance priced merchandise. Based on the current level of consumer demand, the increased promotional environment, and the Company’s permanent markdown cadence cycle, the Company continues to expect a significant year-over-year decrease in the gross margin rate for the fourth quarter.
Saks Incorporated currently operates Saks Fifth Avenue, which consists of 53 Saks Fifth Avenue stores, 51 Saks OFF 5TH stores, andsaks.com. The Company also operates Club Libby Lu specialty stores.
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Forward-looking Information
The information contained in this press release that addresses future results or expectations is considered “forward-looking” information within the definition of the Federal securities laws. Forward-looking information in this document can be identified through the use of words such as “may,” “will,” “intend,” “plan,” “project,” “expect,” “anticipate,” “should,” “would,” “believe,” “estimate,” “contemplate,” “possible,” and “point.” The forward-looking information is premised on many factors, some of which are outlined below. Actual consolidated results might differ materially from projected forward-looking information if there are any material changes in management’s assumptions.
The forward-looking information and statements are or may be based on a series of projections and estimates and involve risks and uncertainties. These risks and uncertainties include such factors as: the level of consumer spending for apparel and other merchandise carried by the Company and its ability to respond quickly to consumer trends; adequate and stable sources of merchandise; the competitive pricing environment within the retail sector; the effectiveness of planned advertising, marketing, and promotional campaigns; favorable customer response to relationship marketing efforts of proprietary credit card
loyalty programs; appropriate inventory management; effective expense control; successful operation of the Company’s proprietary credit card strategic alliance with HSBC Bank Nevada, N.A.; geo-political risks; changes in interest rates; and fluctuations in foreign currency and exchange rates. For additional information regarding these and other risk factors, please refer to the Company’s filings with the SEC, including its Annual Report on Form 10-K for the fiscal year ended February 2, 2008, its Quarterly Reports on Form 10-Q, and its Current Reports on Form 8-K, which may be accessed via EDGAR through the Internet at www.sec.gov.
Management undertakes no obligation to correct or update any forward-looking statements, whether as a result of new information, future events, or otherwise. Persons are advised, however, to consult any further disclosures management makes on related subjects in its reports filed with the SEC and in its press releases.
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