The retailer, Saks Incorporated (SKS) has got a license to open a Saks Fifth Avenue store in Kazakhstan in August 2012, which will be the country's first Saks store.
According to the plan, Saks will construct a tri-level store of approximately 91,000 square feet in the Esentai Shopping Mall in Almaty in Kazakhstan. Further, the Saks Fifth Avenue store will feature a digital video screen on the front elevation of the building reflecting a modern and streamlined design.
Further, the Saks Fifth Avenue store in Kazakhstan will be very similar to the Saks Fifth Avenue stores in the United States in terms of products and services, keeping in mind the local tastes and preferences. In addition, the store in Kazakhstan will include distinctive offerings from established and emerging American and international designers.
Saks Fifth Avenue is popular for its personalized customer service, and the new store will include its signature Fifth Avenue Club for both men and women and offer an ongoing calendar of special events, such as fashion shows and personal appearances by designers. Apart from Saks Fifth Avenue, the Esentai Shopping Mall has a huge variety of luxury fashion and jewelry brand stores.
We believe Saks Fifth Avenue will be a great addition to Kazakhstan and its store will certainly attract all the fashion lovers.
Saks posted its first quarter of 2011 earnings in May and its Saks Fifth Avenue stores saw strong sales growth, particularly in women’s and men’s apparel, handbags and shoes. Saks Direct reported an approximately 25% increase in comparable same stores during the quarter.
Moreover, Saks anticipates same-store sales to progress at the high-single digit rate for the second quarter of 2011 and mid to high single digit range during the second half of fiscal 2011.
Management is optimistic about its performance in fiscal 2011, as it has seen strong growth in sales across store formats, thanks to its merchandising, service and marketing initiatives. Further, the company intends to be very strategic in its SG&A spending, inventory management and capital expenditure investments.
Saks shares maintain a Zacks #1 Rank, which translates into a short-term Strong-Buy recommendation. Our long-term recommendation for the stock remains Neutral.
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