Despite tough economic conditions, the luxury retailer still performed well, posting a 9% same-store sales gain year over year. Total sales rose 4.7% from the same year-ago period, to just under $1 billion, while net income jumped to $39.5 million from $21.6 million.
But executives said that conditions are starting to soften. "Across all zones of business, you're seeing a slowing trend, but more pronounced at the lower end," Sadove said. Same-store sales were only up 3.4% in February and growing categories such as handbags and menswear experienced a slowdown.
For the coming year management is planning $125 million in capital expenditures. The retailer will renovate and/or expand Saks Fifth Avenue department stores in Bal Harbor, Miami and Naples, FL; Boston; Houston and Los Angeles.
For the coming fiscal year, executives predict same-store sales to rise in the mid-single digits. The company operates 54 department stores across the country as well as the Club Libby Liu specialty chain.
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