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Saks says sales trends soft for first two weeks of November

The company said, “As the overall macroeconomic environment remains very uncertain, we continue to approach the future cautiously but very strategically...We remain very optimistic about the outlook for luxury retailing and for Saks Fifth Avenue. Having said that, sales trends have been soft for the first two weeks of November in the aftermath of Hurricane Sandy. Many of our stores, representing about 40% of our total company revenues, were directly impacted by the storm, and we have experienced a decline in saks.com sales generated from our customers in the Northeast. Additionally, sales in a number of our other stores, particularly in Florida, were indirectly affected by the storm, as many of our Northeastern customers have ties to those markets. In aggregate, we estimate that Hurricane Sandy impacted about 55% of our total company store revenue base. Based on these current sales trends we are adjusting our outlook for the fourth quarter, which we believe represents a more realistic view of the business.”