' Southeastern Asset Management, which is the adviser to Longleaf
Partners Funds, has claimed the title of majority shareholder of
luxury retailer Saks Inc. (
). On Dec. 10, Southeastern filed a 13G form to the SEC reporting
a total shareholding of 26,976,320 shares, and ownership of 17.8
percent. In the third quarter, the firm only owned about 21.7
million shares of Saks, representing only 14.19 percent
ownership. The latest transaction boosted Southeastern's holding
by 5.3 million shares.
Southeastern first acquired Saks in the third quarter of 2008,
starting off with 9.5 million shares, purchased at an average
price of $10.49. By the following quarter, the fund sold out as
the stock plummeted to its all-time low. Saks recuperated by the
start of 2009, rising in value for the next two years.
In the third quarter of 2011, Southeastern once again purchased
shares of Saks amounting to 13.6 million shares, and then
consecutively trading in the quarters that followed.
With a market cap of $81.5 million, Saks Inc. is the operating
company of 45 Saks Fifth Avenue stores, as well as 65 OFF 5
stores and its e-commerce site, saks.com. Its stores are known
for selling high-end fashion apparel, accessories and cosmetics.
Today, Saks stock is down 2.21 percent, trading at the price of
In November, Saks announced its third quarter results, presenting
year-over-year rises in total sales and consolidated inventories,
above all. The company had about $74.2 million of cash on hand by
the end of the quarter, and no direct outstanding debt in its
revolving credit facility.
The company also repurchased a small amount of its common stock,
which incurred a total year-to-date repurchase amount of $79.1
million (about 8 million shares) at an average price per share of
Funded debt at the end of the quarter totaled approximately
million, and debt-to-capitalization was 25.9% (without giving
effect to cash on hand).
"In spite of the continued uncertain macro environment, we were
pleased to post a modest year-over-year increase in operating
income and net income for the third quarter," Stephen I. Sadove,
Saks chairman and CEO, said in the report. "Our comparable store
sales increase of 3.3% in the third quarter was below our initial
expectation but was on top of a very solid 5.8% comparable store
sales increase in the prior year third quarter. On a year-to-date
basis, comparable store sales increased 4.3%, and similarly, this
was on top of very strong 10.3% increase in the first nine months
of last year."
Sadove reported to selling 162,500 of his company shares in
In the past 12 months, Saks'
show a revenue growth rate of 7.4 percent, despite a negative
annual growth rate of 11.84 percent. Its book value, too, has
increased by 4.9 percent in the past year, but has undergone a
downward trend line in the past five years.
Year to date, Saks stock has gained in value by 11.18 percent.
GuruFocus gives Saks Inc. 1 star in
, and 6 out of 10 in both
and Profitability & Growth.
Its P/S ratio is close to its one-year low at 5.7, and its P/B
ratio is 49.6.
Saks is one out of 41 stocks in Hawkins' portfolio, whose sector
weightings reveal that the financials and consumer services
sectors are the majority.
Besides Hawkins, other Gurus who have Saks holdings include Bruce
Kovner, Paul Tudor Jones and Westport Asset Management. (View its
holding history with other Gurus at SKS: Holding History.)About
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