Saks Global Enterprises slashed full-year guidance and reported a sales decline in an earnings update to investors on Thursday, citing challenges managing the flow of inventory after years of troubled vendor relationships, according to people with knowledge of the results.  

The luxury retailer saw sales drop to $1.6 billion in the second quarter, down 13% compared to the year-ago period, and lost $77 million by one earnings measure, compared to a $41 million loss in the same quarter last year, said the people, who asked not to be identified discussing private information.

It also slashed 2025 earnings guidance by about half, giving a range around $150 million in an investor call Thursday, compared to around $300 million given earlier this year. The company’s bonds due in 2029 declined following that revision, trading as low as 44.5 cents on the dollar compared to around 51 cents Wednesday, according to Trace.  

The update comes after Saks in August restructured its $2.2 billion debt load, imposing steep losses on some creditors as part of an effort to boost liquidity and turn around its business. The company had been losing money and falling behind on supplier payments just months into its formation through a tie-up of Saks Fifth Avenue and Neiman Marcus in late 2024. 

The results “were softer than expected due to inventory challenges, which continued into the third quarter,” a representative for Saks said in an emailed statement.

“We expect our performance to improve through the holiday season and into 2026 and beyond.”