Shares of Saks Inc. (SKS) surged 18 percent in extended trading, after a report said the luxury retail chain has hired Goldman Sachs Group Inc. (GS) to explore strategic alternatives, including a sale of the company.
The New York Post reported after the bell that Saks has hired Goldman in recent weeks to explore alternatives. The likely bidders are large private equity firms, including KKR and Leonard Green & Partners, Post noted citing sources.
Saks, the owner of Saks Fifth Avenue stores, had reported its first quarter results early today. Saks first-quarter profit dropped from a year ago, reflecting higher charges and lower operating margins. However, the retailer's sales for the quarter grew 5.3 percent and trumped estimates. Comparable store sales, a key financial metric for retailers, increased 5.9 percent for the quarter.
Saks had closed Tuesday's regular trading at $13.67, up $1.39 or 11.32%, on the NYSE. The stock further gained $2.57 or 18.80% in after hours. Trading volume for the day was 12.3 million, above the three-month average volume of 2 million.
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