Saks 5th ave is down a whoppin 99million dollars in the 4th quarter! THAT'S 154.9 MILLION FOR THE YR!!! what a dump to be in! A main reason for this is the holiday season that just passed. Saks lowered it prices in order to adjust to the recession madness, but profit was still low even after 70% cut om mercandise. This at the same time angered Designs b/c it made it even so harder to sell their products at full price. This Recession is in full effect. Saks chairman Stephen I. Sadove had this to say:
"Although it is policy not to comment on bankruptcy rumors, all of the actions [Saks is taking] are ensuring we are free cash flow positive in 2009. Bankruptcy would destroy shareholder value. Our intent is to insure and enhance shareholder value.”
God bless them, the worst is yet to come.
Thursday, February 26, 2009
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True that "The Worst is yet to come". I think this is creating a great opportunity for a new business model for fashion designers, to market directly to consumers and cut out more and more of the middle men. My big thing is the way that wholesalers/retailers put pressure on manufacturers to use labor that is as cheap as possible, that's a whole other story... but part of the same overall economic issue.
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