Saks ups total of improper markdowns

BIRMINGHAM, Ala. – Saks Incorporated has finished its internal investigation of improper vendor markdown allowances first discovered by independent auditors and found that the amounts collected were larger and spanned a longer period of time than first thought.

Saks stated it had confirmed that during the company’s 1999-2003 fiscal years, one of six Saks Fifth Avenue (SFAE) merchandising divisions improperly collected markdown allowances from vendors. However, while the independent investigators found improper markdowns totaling $20 million, the recently released internal investigation has upped that number to $26 million during the same period. Additionally, the investigation found that $8.2 million in improper markdowns was collected from 1996-1998.

“These amounts are attributable to over-collections that resulted from falsification, by merchants in the one SFAE division, of information delivered to vendors,” the company stated.

The company is advising the affected vendors that it intends to reimburse them for the charges, with interest of 7.25 percent per year totaling approximately $14 million.

Home & Textiles Today Staff | News & Commentary

 Home Textiles Today is the market-leading brand covering the home and textiles markets, offering a comprehensive package of print and online products. Home & Textiles Today provides industry news, product trends and introductions, exclusive industry research, consumer data, store operations solutions, trade show news and much more.

Featured Video

  • Live From New York: Fashion Comes Across the Pond

    Camera Icon More Videos

Subscribe to
Home & Textiles Today eDaily
Receive the news you need to know about the trends in the industry delivered right to your inbox.


HTT Current issue for September 2017

See the September 2017 issue of Home & Textiles Today. In this issue, we look at the Attack of the Killer Third Tier: Monster off-pricers are climbing to the top of the food chain, plus New Products: 40 pages of new products debuting at the New York Home Fashions Market; Home Stores: TJX unveils first U.S. HomeSense store; Clicks to Bricks: Boll & Branch moves from digital to physical retailing; and much more... See details!