SAKS’ MARTIN LOSES BONUS IN ’99 AS EARNINGS PER SHARE FALL SHORT
Byline: Thomas J. Ryan
NEW YORK — Smarting from a disappointing year, R. Brad Martin, chairman and chief of Saks Inc., missed his first annual bonus since 1991.
Martin’s total 1999 compensation tumbled 80.6 percent to $1.09 million from $5.6 million, reflecting no bonus or restricted stock awards, according to Saks’ proxy statement. He received a $918,750 base salary and $170,118 in other compensation. His 1998 pay was boosted by a $1.4 million annual bonus and $3.2 million in restricted stock awards.
Martin lost his bonuses because earnings per share missed previously set targets, according to the proxy. Excluding special charges, earnings were $1.64 a share against $1.63 in 1998. After charges, net was $1.30 versus a one-cent loss. Saks’ 10-K blamed subpar same-store sales at its traditional department stores and below-plan earnings at Saks Fifth Avenue.
Lost bonuses and stock rewards also shrank compensation for other executives, including James A. Coggin, president and chief administrative officer, who took home $735,000 against $2.5 million; Robert M. Mosco, president of merchandising and chief operating officer; $737,500 against $2.4 million; Douglas E. Coltharp, executive vice president and chief financial officer; $395,000 against $1.2 million; and Brian J. Martin, executive vice president of law and general counsel, $387,500 versus $1.2 million.
But there are high hopes for the retailer’s online venture. The Saks annual report boasts that that Saksfifthavenue.com has “substantial growth opportunities” with a potential for sales and profitability greater than Saks Fifth Avenue’s New York flagship in five years. “Research indicates that we own the dominant worldwide luxury brand in retailing and that our target customer has a high propensity to shop and spend online,” Martin wrote in the report.
According to the 10-K, the Fifth Avenue flagship accounted for about 7 percent of the company’s total sales of $6.4 billion last year.
As reported, Saksfifthavenue.com will launch in June with over 10,000 stockkeeping units, and is expected to have nearly 100,000 sku’s on the site by mid-2001.
The Saks 10-K shows that the women’s category accounted for 30.8 percent of sales; men’s, 16.5 percent; cosmetics 13 percent; women’s accessories 9.9 percent; children’s 5 percent; home, 9.6 percent; shoes 7.2 percent; intimate apparel, 3.5 percent; juniors, 2.9 percent, and outerwear, 1.6 percent.