Saks' November same-store sales dip 5.2 percent

NEW YORK - Upscale retailer Saks Inc. said Thursday its November same-store sales fell 5.2 percent, better than Wall Street had expected thanks to strength in some apparel categories.

The retailer, however, said it continues to expects a weak fourth quarter, prompting Standard & Poor's to cut its ratings deeper into junk status.

Analysts surveyed by Thomson Reuters expected same-store sales to plummet 16.2 percent during the four weeks ended Nov. 29.

Same-store sales, or sales at stores open at least a year, are a key measure of retailer performance, because they measure growth at existing stores rather than from newly opened ones.

Meanwhile, net sales fell 4 percent to $322.9 million, down from $347.6 million, a year ago.

The New York-based retailer said women's designer apparel, handbags, along with men's and women's shoes and men's contemporary apparel were among its strongest categories during November. Petite and plus-size clothing, women's outerwear, men's accessories, jewelry, intimate apparel and cosmetics were among the weakest.

"The company continues to face very challenging macroeconomic and retail conditions," the company said in a statement. "Customers continued to shift purchases from regular price to promotional and clearance priced merchandise. Based on the current level of consumer demand, the increased promotional environment, and the company's permanent markdown cadence cycle, the company continues to expect a significant year-over-year decrease in the gross margin rate for the fourth quarter."

Saks shares fell 17 cents, or 3.4 percent, to $4.90 in morning trading Thursday.

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