NPR  Feb 25  Comment 
Public health agencies are set up to regulate air pollution from cars, trucks and factories. Wildfire smoke presents a different set of threats, prompting some of those agencies to rethink priorities.
MarketWatch  Feb 7  Comment 
Hudson's Bay Co. said Wednesday that it has rejected an unsolicited offer for its German business from Signa Holding GmbH after a review. "It significantly undervalues our German business and related real estate assets and is not supported by...
New York Times  Feb 5  Comment 
Helena Foulkes, president of CVS’s pharmacy division, will be the latest executive to try to transform the struggling Saks Fifth Avenue and Lord & Taylor stores.
Insurance Journal  Jan 2  Comment 
Swiss consumer protection organization SKS has filed a claim on behalf of some 6,000 car owners seeking damages from Volkswagen AG and Swiss car dealer AMAG related to the “Dieselgate” emissions scandal. The claim has been lodged with the...
Channel News Asia  Dec 30  Comment 
ZURICH: Swiss consumer protection organisation SKS has filed a claim on behalf of some 6,000 car owners seeking damages from Volkswagen AG and Swiss car dealer AMAG related to the "Dieselgate" emissions scandal. The claim has been lodged with the...
The Economic Times  Dec 18  Comment 
When TOI reached out to Hudson’s Bay Company, a spokesperson said, “We do not comment on rumours and speculations.”
Wall Street Journal  Nov 3  Comment 
Luxury mall landlord Taubman Centers Inc. filed a lawsuit against its tenant, luxury retailer Saks Fifth Avenue in Puerto Rico, alleging the retailer has dragged its feet in rebuilding its store in the Mall of San Juan after suffering major damage...
MarketWatch  Nov 1  Comment 
Saks Fifth Avenue parent Hudson's Bay Co. said Wednesday it has received an offer for its German business from Signa Holding GmbH, the owner of its main German rival, confirming market speculation. The Canadian company said the unsolicited offer...
New York Times  Oct 20  Comment 
Gerald L. Storch will depart the Canadian retailer, which faces increased pressure to raise profits at Saks Fifth Avenue and Lord & Taylor, on Nov. 1.
CNNMoney.com  Oct 20  Comment 
These are trying times for retail. Hudson's Bay Company -- which owns the Saks Fifth Avenue and Lord & Taylor department stores -- is no exception.


Saks Incorporated (NYSE:SKS) sells luxury apparel, shoes, jewelry and accessories in the U.S. through its Saks Fifth Avenue (SFA), Saks Fifth Avenue Off Fifth and Club Libby Lu (CLL) stores. In fiscal 2010, SKS posted net sales of $2.786 billion and net income of $47.85 million.[1]

Saks—and most other luxury goods retailers—are relatively shielded from trends such as rising oil prices because it targets a lower-income demographic; however, luxury consumption exaggerates more fundamental up and down swings, typically rising and declining at a faster rate than the overall economy. Due to healthier U.S. economic conditions, Saks made profits in fiscal 2010, compared to losses suffered in 2008 and 2009.[1]

Company Overview

Saks owns and operates luxury retail stores, selling high-end fashion apparel, accessories and furnishings to its traditionally middle-aged, higher-income female customers.

Business Segments

The Saks, OFF 5TH and Saks Direct businesses are aggregated in one business segment.[1] SKS product categories are listed below:

  • Women's Apparel: 37.5% of Fiscal 2010 net sales.[1]
  • Accessories: 18.9%
  • Cosmetics: 12.1%
  • Men's Apparel: 15.2%
  • Women's Shoes: 12.8%
  • Other: 3.3%

Geographic Presence

Most of Saks stores are in the U.S., but the company does have SFA stores in Riyadh, Saudi Arabia; Dubai, United Arab Emirates, Mexico City, Mexico, Kazakhstan, and Shanghai, China.[1]

Business Growth

Fiscal 2010 (ended January 29th, 2011)

As a whole, SKS had a rebounding fiscal 2010 compared to their net losses in 2008 and 2009.

  • Net sales increased 5.9% to $2.786 billion.[1]
  • SKS posted net income of $47.85 million, compared with a $57.9 million loss in fiscal 2009.[1]

Trends and Forces

Luxury retail exaggerates swings in economic cycles

While luxury goods consumption is well-insulated from trends such as rising oil prices, the industry is sensitive to longer-term changes in economic cycles, as luxury goods exaggerate up and down swings. During a boom, consumers' demand tends to increase faster than the growth rate of economies while slowdowns can lead to rapid declines in sales. Reduced demand for luxury items might induce the company to take inventory markdowns or offer discounted items, which detract from the cache of expensive items.

Tourism drives 20% of sales

A substantial number of Saks’ department stores are actually not in tourist markets, including the flagship SFA store on Fifth Avenue in New York City, and approximately 2.43% of the company’s annual sales come from tourists. Global instability, such as terrorist activity would discourage tourism. Furthermore, many tourists take advantage of the U.S dollar’s weakness in relation to other currencies when buying from Saks; a strengthening of the dollar may discourage tourist business for the company. While most of its stores are in the U.S., the company does have SFA stores in Riyadh, Saudi Arabia, Dubai, United Arab Emirates, but not Mexico.

High dependence on fashion trends

Much of success in the retail business depends on the company’s ability to predict and anticipate consumer tendencies as order agreements are made months in advance of sales to consumers. Consequently, if the company inaccurately predicts consumer preferences, it could face lower sales, an overflow in inventories and lower profit margins—all of which would adversely affect the company’s financial health.


The luxury retail market has become increasingly competitive, and Saks’ prime competitors include Neiman Marcus (privately held), Nordstrom (JWN), Bloomingdale’s, and Barney’s (privately held), all of which offer comparable merchandise and cater to a customer demographic that earns roughly $175,000 to $200,000 a year, though Nordstrom targets a slightly less affluent average customer.

  • Saks (SKS) merchandise is dominated by apparel, which constitutes about 55% of the total assortment
  • Nordstrom (JWN) derives a sizeable portion of sales from shoes
  • Bloomingdale’s derives a high portion of its revenue from home goods.


  1. 1.0 1.1 1.2 1.3 1.4 1.5 1.6 SKS 2010 10-k
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