SAKS HAS GOOD NEWS AND BAD NEWS

In a Friday meeting, Saks Global CEO Marc Metrick told BMO Capital Markets analysts that it had “smoothed things over” with its vendors and reassured that the previous year’s $275 million losses would not result in store closures. Notably, the revelation was that the downtown Dallas Neiman Marcus would remain open past 2025, despite having originally stated that it would close in March of this year. Since that time, an extension was granted that would allow operations through the holidays; however, the new statements by Metrick imply that the Dallas landmark won’t be going away anytime soon.

As we previously reported in our story regarding the 2024 shortfall, vendor relationships with Saks had become incredibly strained do to unpaid invoices. Metrick stated that Saks “is making progress on outstanding balances.” A statement that implies these vendors have not yet been made whole, but that part of their $350 million in financing went to easing the pressure of their strained vendor relationships.

BMO Capital Markets Managing Director Simeon Siegel added, “While acknowledging macro volatility, Metrick expressed clear excitement and confidence in his long-term business opportunities, the luxury business at large, and expressed confidence in their liquidity and vendor relationships.”

That macro volatility was the focus of the newly released Saks Global Luxury Pulse survey. The survey reveals that the greater luxury market continues to show signs of a shaky future. Conducted from April 24 to 28, 2025, the survey revealed that luxury consumers are particularly concerned about a potential recession, their personal finances, stock market volatility, global conflicts, and tariffs.

“As the expert on the luxury consumer, we know that uncertainty in the macroenvironment impacts their intent to spend on luxury. With that in mind, we believe it’s our responsibility as the largest multi-brand luxury retailer in the world to adapt to the uncertainty by demonstrating the value of our experience and quality of our luxury assortment,” said Emily Essner, President & Chief Commercial Officer, Saks Global.

She continued, “We also know that the luxury consumer is resilient – they are typically the last in and first out of these moments of uncertainty – and we believe they will embrace luxury shopping as economic conditions improve. With that, we see this as an opportunity to double down on our strategy to inspire customers through hyper-personalized shopping experiences. We are bringing this to life through our vision, The Art of You, delivering data-driven recommendations to foster meaningful customer relationships that drive brand loyalty for years to come.”

28% of the survey’s respondents reported feeling optimistic about the economy, which sounds good until it is pointed out that this is a decline of 13 percentage points compared to the prior survey in January 2025 and a decline of 17 percentage points compared to the survey in 2024.

Other survey results show a 13% decline in feelings of “calm,” a 20% decrease in feelings of preparedness for the future, and that despite the decrease in optimism about the economy, 67% of those with incomes above $ 200,000 still feel secure about their finances.

Among all respondents, the luxury consumer’s intent to spend on luxury has softened compared to recent surveys, with 47% planning to spend the same or more on luxury in the next three months. This represents the lowest level since tracking began in April 2023, and a decline of 11 percentage points compared to the prior survey. Additionally, 48% of customers with incomes above $200,000 stated that their spending habits are expected to remain the same, a decrease from the previous 63% in 2024.

The Saks Global Luxury Pulse is a quarterly online survey of luxury consumers’ attitudes towards shopping, spending, and the economy. It is based on responses from 1,248 U.S.-based luxury consumers aged 18 and above, collected from April 24 to 28, 2025. Formerly known as the Saks Luxury Pulse, following the completion of Saks Global’s acquisition of Neiman Marcus and Bergdorf Goodman, the survey’s scope broadened, and it was rebranded as the Saks Global Luxury Pulse.