SAKS’ STOCK SPIKES DESPITE $98.8M LOSS

Saks shares surged 13 percent yesterday despite a wider-than-expected quarterly loss, as the luxury chain pooh-poohed bankruptcy rumors and said it wouldn’t rule out offers to be acquired.

Saks raised eyebrows last fall when – more than a month before Christmas – it began slashing prices on designer clothing by 70 percent. Those discounts spurred a fourth-quarter loss of $98.8 million as revenue plunged 15 percent to $835.5 million. A year ago, Saks earned $39.5 million.

While Saks projects same-store sales will decline at least 10 percent this year, CEO Steve Sadove told analysts the company expects to generate cash.

“Bankruptcy would destroy shareholder value,” Sadove said. “We are seeking to enhance shareholder value.”

Still, he admitted Saks is considering selling some of its real estate. Sources said the company also is looking to negotiate lower rents for some stores during the next several weeks.

Despite a poison pill that was recently renewed, Saks will “always listen to anything” when it comes to buyout offers, Sadove added. The company’s largest shareholder is Mexican billionaire Carlos Slim.