Saks Extends Rally to Second Straight Day on Rumor of Sale.

Michael Teague |

Saks Extends Rally to Second Straight Day on Rumor of Sale.Shares for high end department store retailer Saks, Inc. (SKS) were on a tear on Wednesday, advancing over 15 percent at one point to $16.16 per share on news that the company has hired Goldman Sachs (GS) to advise it on its path forward, with the possibility of a sale being one of the options the company is considering.

Shares had already bumped up on Tuesday after an unexpectedly positive earnings report showed the company bucking a department store-wide trend of a decline in sales of more expensive luxury items. During the first quarter of 2013, Saks saw a nearly 6-percent increase in same-store sales, higher than any other department store in Q1, and beat earnings-per-share estimates by 2.2 percent.

Shares leapt some 11 percent as a result, and gained another 18 percent in late trading after the news about Goldman and a potential sale was reported after the close. The original report suggested that private equity firms such as KKR and Leonard Green & Partners could be among the likely bidders.

With revenue from stores open at least one year up nearly 6 percent in the first quarter, and in a climate that has seen other department stores lag, particularly in sales of high-end or pricier items, the company that operates the iconic Saks Fifth Avenue heads in to any buyout deal from a position of strength.

Saks, with a market cap of just over $2 billion, has declined to comment on the matter, but has made considerable efforts recently to bolster its e-commerce operations. The company has enlisted the help of application software giant Oracle (ORCL) in a long-term project that will make shopping online at Saks a far more coherent experience.

UBS analyst Michael Binetti has estimated a $16 per-share sale price for the company.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to:


Symbol Name Price Change % Volume
ORCL Oracle Corporation 50.95 0.65 1.29 42,810,692 Trade
GS The Goldman Sachs Group Inc. 217.19 -2.58 -1.17 4,447,662 Trade
NATH Nathan\'s Famous Inc. 64.80 1.75 2.78 37,324 Trade


Emerging Growth

Winston Gold Mining Corp.

Winston Gold Mining Corp is a mineral exploration and development company. The Company is engaged in acquiring, exploring, developing, and operating mining properties.

Private Markets

Almond Smart Home Router by Securifi

Securifi sells user friendly touch screen routers that also have support for IoT/home automation.Securifi’s Almond revolutionized wireless router setup with its easy to use Touchscreen Interface in 2012. Now our…


The spark hit Jamie when he saw co-workers competing to lose weight. Instead of pizzas and subs, they were eating salads and jogging along the river. Some were sneakily leaving…