After a brutal year in which the nation’s luxury retailers were forced to offer their wares at stunning discounts, they are trying to get their magic back. And they may have found a way: deliberately running low on merchandise. The New York Times reports.

NEW YORK (Reuters) - Upscale department store operator Saks Inc <SKS.N> reported a quarterly profit on Tuesday, beating Wall Street expectations for a loss, and its shares rose 5.5 percent.

Luxury retailer Saks Inc. eked out a quarterly profit for the first time in six quarters by trimming expenses and scaling back on promotions and clearance discounts even as sales fell, the company reported Tuesday.

With the economy beginning to improve, high-end retailers are in a good position for recovery, a Goldman Sachs analyst said Monday.

Improved retail sales gave Wall Street a boost Monday but provided little hope for a robust holiday shopping season that might invigorate the economic recovery.

Retail sales likely rose in October with part of the strength coming from a rebound in auto sales. Even with a gain, economists worry that consumer spending, the critical ingredient for overall economic growth, could falter in the months ahead.

Deal-craving shoppers helped a trio of prominent U.S. retailers report Tuesday that their third quarter managed to improve this year.

Nordstrom reported earnings that missed analysts expectations by a penny but beat on revenue, causing the company's shares to fall in after-hours trading.

Consumers borrowed less for a record eighth straight month in September amid rising unemployment and tight credit conditions.

The Great Recession and Americans' retreat into thriftiness are teaching retailers a new lesson: How to survive when consumers are focused on "needs" rather than "wants."

Most economists think the recession is over, but they say the jobless rate will keep rising until at least next summer as the economy struggles.

Retailers that reported their earnings Tuesday made big strides in profitability from a year ago by slashing inventory and other costs.

Retailers reported disappointing sales in July, a sign that consumers are continuing to watch their spending carefully and hunting for the best bargains.

Among the marks of Manhattan’s prosperity in recent years were the thousands of restaurants and shops that opened to meet an ever-growing demand. But as New Yorkers have drastically cut back, the shops that line the streets, from chain outlets to family-run shops, have started to disappear.

What Iceland has to do to save itself.