|
Saks 3Q ahead
|
 |
November 20, 2001: 5:24 p.m. ET
Luxury retailer posts sharp 3Q loss, but comes in ahead of estimates.
|
NEW YORK (CNN/Money) - Department store operator Saks Inc. Tuesday posted a steep third-quarter loss that was smaller than Wall Street expected as the company continued to struggle with declining sales amid slower economic activity.
For the quarter ended Nov. 3, the operator of the luxury Saks Fifth Avenue department stores posted a loss before unusual items of $23.5 million, or 17 cents a share, compared with a profit of $1 million, or a penny a share, a year earlier. Analysts polled by earnings tracker First Call anticipated a loss of 32 cents a share.
Including items, the company posted a loss of $21.8 million, or 15 cents a share, compared with a loss of $8.1 million, or 6 cents a share, a year earlier.
Third-quarter sales fell 9.2 percent to $1.4 billion from $1.6 billion.
The company, which has experienced slower sales for the past few years, said sales at its Saks Fifth Avenue stores, which heavily depend on tourism business, were "adversely affected" by the Sept. 11 terrorist attacks on the World Trade Center and the Pentagon and the subsequent downturn in travel.
Sales at the New York City flagship Saks Fifth Avenue, which account for 17 percent of the division's annual sales and 7 percent of total company sales, fell 23 percent in the third quarter, the company said.
The company's stock has tumbled 43 percent since February, when it posted a 52-week high of $14.23.
Saks Direct sales fell to $25.7 million from $31 million a year earlier.
Separately Tuesday, Saks said it had secured a new $700 credit financing agreement due in November 2006. The revolving credit facility replaces and extends a previous $750 agreement due to expire in September 2003.
Banc of America Securities LLC served as Lead Arranger, and Banc of America Securities LLC and Salomon Smith Barney served as Joint Book Runners and Co-syndication Agents for the Credit Facility.
As of Nov. 15, Saks had reduced its $1.6 billion debt by $411 million compared with a year ago, Douglas Coltharp, the company's chief financial officer said.
"With the completion of this financing, our balance sheet is properly structured to support the execution of our operating and strategic plans," he said.
Shares of Saks (SKS: Research, Estimates) slipped 18 cents to finish at $8.11 Tuesday. 
|
|
|
|
|
|
|
