Saks Opts for Oracle Suite
In order to provide a stable IT platform for its business operations and also improve it productivity, Saks Incorporated (SKS) has opted for Oracle Retail and E-Business Suite 12.1 application of Oracle Corporation (ORCL).
Oracle E-Business Suite 12.1 is a part of Oracle’s Application Unlimited Plan. It comprises of a portfolio of rapid value solutions, integrated business processes and industry-focused solutions, helping organizations of all sizes and industries and regions to get a global business foundation, which reduces costs and increases productivity.
Saks aims to provide its finance, human resources, merchandising and commerce and store operations departments with real-time, mobile access to sales, inventory and performance data that they require for their operations. The application of Oracle will help Saks achieve these goals.
Management feels that the usage of Oracle application will enable Saks employees to deliver a better and a more personalized customer interaction across every outlet.
Saks already uses Oracle Database and Oracle Hyperion performance management applications. With the addition of the Oracle Retail and E-Business Suite 12.1 application, Saks now has access to a wide range of Oracle solutions. The comprehensive Oracle technology will help Saks to lower costs and will enable employees to improve their productivity.
Saks posted better-than-expected earnings of 17 cents per share in the fourth-quarter ending January 28, 2012, which surpassed the Zacks Consensus Estimate by 3 cents and the prior-year earnings by 4 cents. The results were driven by a robust operating performance and strong focus on making targeted investments in areas such as Saks Direct, its omni-channel initiatives, and marketing.
However, with depleting disposable income of its consumers, Saks faces the risk of reduction in the number of consumers who can afford to purchase discretionary items of Saks, focusing mainly on its luxury retail sector.
Currently, we have a Neutral rating on Saks. Further, the stock holds a Zacks #3 rank, which implies a short-term Hold rating.
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