NEW YORK, United Nations - The Saks luxury retail chain, which has agreed to a friendly $2.4-billion takeover offer from Hudson's Bay Co. (TSX;HBC), posted a bigger loss in the second quarter than analysts anticipated.
Among other things, Saks (NYSE:SKS), misjudged the timing of a key seasonal clearance sale and charges closed to store closings and acquisition-related activities.
The New York based company lost $19.6 million, or 13 cents per share, for the three months ended Aug. 3. That compares with a loss of $12.3 million, or 8 cents per share, in the prior-year period.
The latest quarter included $5.2 million in charges tied to store closing costs, acquisition-related costs and other items.
Stripping these out, the company lost 10 cents per share. Analysts polled by FactSet predicted a smaller loss of eight cents per share.
The company's selling, general and administrative expenses rose to $210.4 million from $190.7 million. Gross margin fell to 36.6 per cent from 37.2 per cent.
Saks chairman and CEO Stephen Sadove said in a statement that the decline was mostly because the company had to take increased markdowns in men's, women's shoes and handbags.
Sadove also said that delaying the start of Saks' end-of-spring clearance sale hurt its sales and gross margin.
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