Tuesday, March 23, 2010

Saks Inc (SKS) Tidbits From Saks’ 2009 10-K $SKS [3 REPORTS Morgan Stanley, Citi bank, Morningstar]

Our Take — In 2009, SKS EBIT margin improved 295 bps YOY to (-0.8)% of sales. While this metric is far from management’s previously stated 8% long-term EBIT margin goal, we believe that there is significant fundamental improvement opportunity over the next several years, driven by a recovery in the high-end of retail, SKS’s merchandising, marketing, and technology initiatives, and the growth of Direct and Off 5th. We have a Buy (1H) Rating and $10 target price for SKS.

Saks Inc (SKS)

Saks, In


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