Despite the weaker sales
In a call with analysts, executives explained that the storm had caused some disruption to the supply chain,perhaps test the water a little by purchasing a couple of cheaper items to begin with, including delays in getting merchandise into stores, and that Saks would extend a sales event by a few days, compromising its gross profit in the current quarter.
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The operator of Saks Fifth Avenue and Off Fifth department stores said it expects sales at stores open at least a year to be flat during the current holiday quarter because of a slow start to November due to Superstorm Sandy.
Despite the weaker sales, Chief Executive Steve Sadove reassured analysts that the company was already recovering from the storm even though sales were still depressed two weeks later. "You're not going to see a long-term effect from the hurricane," Sadove said,compromising its gross profit in the current quarter.. In the same vein, he added that it expects sales at stores open at least a year, or same-store sales, to be flat because of Sandy. Looking ahead to the fourth quarter, Saks expects comparable store sales to be relatively flat compared to last year.
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