Luxury department store Saks Inc. (SKS) has reported positive same-store sales and total sales for the month of June 2012.
Women’s shoes, cosmetics and fragrances and men’s private brands, tailored clothing, and shoes contributed to the decent sales results.
Saks’ comparable-store sales increased 6.0% in June, with total sales for the five weeks ended June 30, 2012 also climbing 6.0% to $274.0 million. The comparable sales growth for the month of June 2012 was within the mid-single digit guidance range for the second quarter.
For the two months ended June 30, 2012, total sales climbed 4.9% year over year to $489.8 million and comparable store sales went up 5.1% year over year during the same period.
Saks’ peer Macy’s Inc. (M) also performed well in the month of June 2012. Macy’s total sales grew 0.8% year over year to $2.4 billion for the five-week period ended June 30. Same-store sales rose 1.2% year over year for the month.
Saks is reporting decent same-store sales for the past few quarters. This implies that the demand for its lifestyle commodities is high among its customers and positive customer traffic is being decently converted into purchases. However, we remain concerned about the ever-changing demands of the consumers, increased volatility in the financial markets and the overall uncertainty in the macro-economic environment.
Headquartered in New York, Saks Incorporated, along with its subsidiaries, operates traditional and luxury departmental stores in the US through Saks Fifth Avenue stores, Saks Fifth Avenue OFF 5th stores and Saks Fifth Avenue ecommerce operations, known as Saks Direct.
Currently, we have a long-term Neutral recommendation on Saks, which carries a Zacks #3 Rank (short-term Buy rating).
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