|Type||Public (NYSE: SKS)|
|Founded||1998 in Birmingham, Alabama|
|Headquarters||New York City, New York|
|Products||Saks Fifth Avenue
Club Libby Lu
|Revenue||▲ US$3.03 Billion (FY 2009)|
|Operating income||▼ US$-135 Million (FY 2009)|
|Net income||▼ US$-155 Million (FY 2009)|
|Total assets||▼ US$2.17 Billion (FY 2009) |
|Total equity||▼ US$966 Million (FY 2009)|
Saks Incorporated (NYSE: SKS), formerly known as Proffitt's Inc., was founded in Birmingham, Alabama in 1998 and is a Fortune 1000 operator of high-end department stores in the United States. The company was a former Fortune 500 operator of departments stores with revenue nearing $7 billion. This consisted of four divisions. The company's main-line department store group was made up of its Southern Department Store Group: McRae's and Proffitt's, and its Northern Department Store Group: Bergner's, Boston Store, Carson Pirie Scott, Herberger's and Younkers. The company's Specialty Department Store Group included Parisian, and the company's Saks Fifth Avenue Department Store Group included Saks Fifth Avenue and Off 5th. After going public in 1987, Proffit's Inc. completed acquisitions of several department stores. The company was renamed to Saks Incorporated in 1998 after the acquisition of Saks Holdings, which brought the Saks Fifth Avenue and Off 5th franchises, as well as Folio, a mail-order business and Saks.com, an online retailer. Saks Incorporated has its headquarters in Midtown Manhattan, New York City.
Proffitt's Inc. began as five Proffitt’s stores in the Knoxville, Tennessee metropolitan area. The company went public on the NASDAQ under the symbol PRFT. The company continued to grow and in 1989 purchased 18 Hess's locations in Tennessee, Virginia, Kentucky, and Georgia. From 1994 to 1998, the company added McRae's, Younkers, Parisian, Herberger's, Carson Pirie Scott, Boston Store, and Bergner's chains, as well as additional stores from Loveman's, Parks-Belk, and Brody's, which were converted into existing store nameplates. In 1997 the company started trading on the New York Stock Exchange under the symbol PFT.
In October of 1997, Proffitt's relocated its corporate headquarters to Birmingham, Alabama from Knoxville. In September 1998, the company acquired the holding company for the luxury retailer Saks Fifth Avenue, Saks Holdings, Inc., and subsequently changed its legal name to Saks, Incorporated. The combined company kept its corporate headquarters in Birmingham following the acquisition. The former Saks Fifth Avenue properties became the Saks Fifth Avenue Enterprises division of the company with the larger Birmingham-based department store division becoming the Saks Department Store Group. In 2001 the company recorded record revenues of $6.6 billion making it one of the top three largest operators of department stores in the United States. The company, along with its Parisian division, was one of the primary sponsers of the Bruno's Memorial Classic's Pro Am's. The company joined fellow Birmingham-based HealthSouth Corporation as a Pro Am primary sponser.
By 2005, Saks Incorporated began to seek a narrower focus towards the luxury-oriented retail synonymous with its Saks Fifth Avenue stores. The decision resulted in a July 2005 sale of its combined 47 Proffitt's and McRae's stores to Belk for approximately $622 million.
On October 31 that same year, Saks announced that it was selling the 142 stores within its Northern Department Store Group, including Carson Pirie Scott, Bergner's, Younkers, Herberger's, and Boston Store) to Bon-Ton Stores, Inc., for $1.1 billion; the transaction was complete as of March 6, 2006..
On August 2, 2006, Saks Incorporated announced that it had agreed to sell its upscale 38 Parisian stores, along with two regional distribution centers and Birmingham corporate headquarters to Belk, which rebranded them under their own name in the third quarter of 2007. Saks announced plans to relocate its corporate headquarters from Birmingham to New York in late 2007. A small number of the company's executive team still remains in Birmingham today.
On November 5, 2008, Saks announced the closure of the Club Libby Lu chain. The company's activity within the last 12 months is seemingly oriented toward the return of Saks Fifth Avenue as an independently-operated brand for the first time in more than 30 years. Some industry experts have also speculated that the activity positions a streamlined Saks Incorporated itself for buyout at a later point.