Business

WARMING UP TO SAKS

An Icelandic investor who has voiced interest in buying Saks says he’s unbowed by recent weakness in luxury retailing, and told The Post that Saks shares, which have been hammered in recent days, look “attractive.”

Jon Asgeir Johannesson, executive chairman of Icelandic retailer Baugur Group, was spotted yesterday chatting with Saks CEO Steven Sadove on the sidelines of a panel discussion on retailing hosted by the investment bank Financo.

Both executives declined to comment on whether they were discussing – yesterday or recently – Johannesson’s interest in acquiring Saks. But despite reports of a holiday spending slowdown among well-heeled US shoppers, Johannesson said in an interview that he remained optimistic about the luxury business.

“I still think it’s a great category to be in,” Johannesson told The Post. “I haven’t changed my opinion that Saks is a great company.”

Having traded at the $22 level in the days leading up to Christmas, Saks shares have since tanked on fears that the luxury boom is finally losing momentum because of turmoil in the housing, credit and stock markets. Yesterday, Saks closed at $15.94, up 9 cents.

Sadove said “nobody’s totally immune” to the economy’s weakness, noting recent warnings of lackluster holiday spending from Tiffany and American Express. Still, he added that the weakest categories for Saks during the holidays were for relatively low-priced items targeted for “aspirational” customers. Meanwhile, designer dresses and handbags with four- and five-digit price tags continued to see brisk demand during the Christmas season, Sadove said.

Glenn Rothman, CEO of the Hearts on Fire diamond brand, said sales of big-ticket jewelry pieces at $25,000 to $30,000 were a growth engine during December, with sales up nearly fourfold. Still, that’s the category he’s most worried about as 2008 begins. He blames the faltering stock market for sapping morale among the super-rich.

“The wealthiest shoppers have the money to spend, but the fear is that they’ll be hesitant to spend it,” Rothman said.

Financo Chairman Gilbert Harrison said the bank believes that luxury spending will be slower this year, but that it will still post healthy growth. james.covert@nypost.com