Saks reported a loss of $2.2 million (£1.3 million) in the fourth quarter versus a profit of $96.6 million (£55.2 million) for the same period a year earlier.
Sales fell to $1.77 billion (£1.01 billion) from $2.07 billion (£1.18 billion) a year ago, because of the sale of the Proffitt's and McRae's department store chains last July.
Operating profits at luxury chain Saks Fifth Avenue Enterprises slid $50.4 million (£28.8 million) to $7.6 million (£4.3 million) during the quarter, hurt by lost revenue from a New Orleans department store, store closures and legal expenses.
Like-for-like sales in Saks department stores rose just 1.4 per cent, well below the company's expectations. Saks chief executive officer Stephen Sadove called the results 'unacceptable' and said he would be directly involved in future day-to-day operations.
The results also reflect charges of $56.3 million (£32.1 million) for writing down the value of goodwill and other assets, as well as legal expenses and employee retention and severance costs.
Earlier this year, Saks said it was exploring strategic options for its Parisian chain, which it expects to sell this year. This would leave it with just the Saks Fifth Avenue Enterprises by next year.
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