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Comps up, loss widens at Saks

NEW YORK — Saks Inc. recorded a net loss of $12.3 million, or 8 cents per diluted share, for its second quarter. For the prior year second quarter, the company recorded a net loss of $8.4 million, or 5 cents per diluted share.

Total sales for the quarter increased 5.1% to $704.1 million from $670.2 million for the same period last year. Same-store sales for the quarter rose 4.7%. The increase in sales was helped by strong performances in the women’s and men’s contemporary apparel, women’s and men’s shoes, fashion and fine jewelry, and cosmetics and fragrances.

Stephen I. Sadove, chairman and CEO, noted, “Our comparable store sales increases of 4.7% in both the second quarter and six months were on top of very strong 15.5% and 12.7% increases in the second quarter and first six months of last year, respectively.”

“While the overall near-term macro environment remains uncertain, we are very excited about the future of Saks and our ability to generate continued growth. We remain focused on executing our core merchandising, service, and marketing strategies, and we are strategically and prudently evolving our business to fully embrace omni-channel retailing through a series of infrastructure and systems enhancements over the next few years. We believe these investments will position us for the future and allow us to deliver incremental sales and operating margin improvement over time.”

The company has reaffirmed its guidance for the balance of the year. Comparable-store sales growth is expect to be in the mid-single digit range for the second half of the fiscal year.