Thinking Saks Fifth Ave

Discussion in 'Stocks' started by stonedinvestor, Mar 18, 2007.

  1. Saks stock seen hitting $25 - Barron's
    NEW YORK, March 18 (Reuters) - Saks Inc. (SKS.N: Quote, Profile , Research) shares could hit the mid-$20 range as it improves its operating results, according to a Barron's report.

    The company, whose New York Fifth Avenue flagship accounts for some 20 percent of sales, has vowed to boost operating margins from its current estimated 2 percent from a management, merchandise and operations make-over plan.

    Saks has sold off mid-tier operations acquired during a time when it looked to boost the number of department stores in its portfolio.

    High-end retailer rival Nordstrom (JWN.N: Quote, Profile , Research), by comparison, achieved operating margins of about 12.2 percent in the last quarter.

    Saks operating margins are expected to reach 4 percent by the end of the current fiscal year, according to the March 19 Barron's report.

    "A share price in the mid-20s could be easy to achieve as Saks retools its stores and image to yield a more stylish bottom line," Barron's said.
    Reuters Hotels and Casinos Summit

    >> always a good sign when some pub comes out when you're thinking about the name. My wife is very into fashion and shops like a killer tornado so I trust her views on these things and she's been telling me the buying has gotten a lot better at Saks and the mailer they sent around recently was top notch. as well.

    If $25 is just by boosting margins to 4%, imagine where this stock is a couple years from now with operating margins perhaps 7% which is doable.
    Not a bad pickup here. SKS.
  2. topdown


    Check MOV also - similar space (high-end retail), but a forward PE (fy '08) of only 16 and a PEG of 1.27.
  3. Wouldn't you know MOV is my one retail stock now.
  4. dhpar


    i was there 2 weeks ago and the store was almost empty + most of the merchandise saksed