U.S. high saxophone department lost a quarter of its losses in the second quarter

By selling products at full price, Saks, a high-end American department store chain, reduced its loss by two-quarters, which helped increase the profitability of its products, but it announced the closure of two other stores.

Saks recently said that as of July 31, its quarterly loss of 32.2 million US dollars, there are 3 stores closed.

Its revenue growth increased by 5% to $593.1 million. The company’s quarterly revenues increased by 4.6% for those stores that opened at least one year. Saks hopes that its income will increase by double digits during the rest of the year.

In order to resist the economic downturn, Saks has reduced promotional activities and actively worked with designers to create new products with lower prices. Saks said that shoes, handbags, women's designer clothes, men's clothing and accessories performed well during the quarter. The company’s New York City flagship store continues to outperform other stores.

Underperforming categories include denim, jewelry, and contemporary clothing. Chief Executive Officer Stephen Sadov said at a press conference that he had told analysts to call the company and that there would be a plan to address specific brand and category issues and had hired 35 local marketing managers to help Promote economic growth. The company’s sales staff now have their own business plans to increase sales and allow consumers to spend more.

Two years ago, the company focused on cutting costs and responding to new economic conditions. People were skeptical about purchasing. However, Saks said that it is advancing its business development in certain categories and markets.

"This year we have begun to emerge from our defenses with caution and selectivity," he said.

Saks's underperforming stores have been closed, including shops that have opened stores for three months. Saks announced plans to close its Saks Fifth Avenue store and Texas stores will also be closed, affecting 65 employees. A 60-employee California store will close in October.

Sadov said that for those who are unprofitable and those who are plagued by the company’s employees, they can choose to go to other stores or leave.