Saks Global Kicks Off Year in Red Amid Transformation Post-Neiman Marcus Merger

Saks Global starts 2025 in the red. The U.S. company, the result of the merger between Saks and Neiman Marcus at the end of last year, closed the first three months of the current fiscal year with declines in both sales and profit. Despite this, the company maintains that it is moving forward with the transformation of its business and that the results are better than expected.

The group closed the first quarter with a net loss of $232 million, up from a net loss of $184 million in the first quarter of 2024 (excluding Neiman Marcus).

Gross operating profit (ebitda), meanwhile, came in at $13 million, compared with negative ebitda of $1 million posted in the same period last year (excluding Neiman Marcus). The company’s gross margin stood at 44%, 160 basis points above the same period of 2024 thanks, according to the company, to a higher percentage of full-price sales.

Saks Global posted first-quarter sales of $1.6 billion

Saks Global’s sales in the first three months of fiscal 2025 were $1.6 billion. In the first quarter of 2024, Saks sales reached $900 million and, including Neiman Marcos, $1.9 billion.

Saks Global’s gross merchandise value (GMV) at the end of the first quarter stood at $2.0 billion, compared to Saks’ $1.2 billion in the first quarter of 2024 and $2.3 billion including Neiman Marcus.

“At Saks Global, we are making steady steps in executing the transformation of our business,“ said Marc Metrick, CEO of Saks Global; first-quarter results were slightly better than expected, as we had anticipated continued pressures on our business.We anticipated continued inventory pressures, short-term effects from our integration work and more cautious spending by luxury consumers.

Saks Global is confident of achieving cost savings of around $600 million annually in the coming years. At the end of 2024, Hudson’s Bay Company’s (HBC) acquisition of Neiman Marcus led to the creation of Saks Global, which includes Neiman Marcus, Bergdorf Goodman, Saks Fifth Avenue and Saks Off 5th.

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