SKS shares jumped 20% on news that the firm may be bought out for $1.7 billion. The $11/share bid is 67% more than the previous day closing price of $6.60.
SKS announced that its same store sales grew 12.7% compared with March 2009. Analysts predicted that same store sales would increase 8% for the month. The success of SKS in 2010 is an indicator that consumers are revisiting luxury brands after the 2008 Financial Crisis.
In response to the housing market, the subprime lending debacle, and the imminence of a downturn in the private equity market in the U.S this past August, stock prices declined worldwide. Due to the high correlation between swings in economic cycles and luxury consumption, Saks, a luxury retailer, saw substantial decline in its stock prices as did many U.S financial services firms.