The news: Saks Global slashed its full-year guidance in half—to around $150 million from $300 million earlier this year—per Bloomberg.

It also reported a 13% YoY sales drop and a $77 million loss, compared to $41 million in the year-earlier Q2.

The context: Less than a year after Saks Fifth Avenue’s parent acquired Neiman Marcus, the merger already looks as ill-fated as Kmart’s 2005 takeover of Sears.

• The deal was pitched as a bid to build a luxury retail powerhouse with greater leverage over vendors and lower costs. Instead, Saks has ceded ground to rivals, is selling a minority stake in Bergdorf Goodman to reduce debt, and turned to complex financial maneuvers to stay afloat.
• The company has struggled to pay vendors, and a growing number are withholding fall merchandise ahead of the critical holiday season, per Retail Dive. If Saks can’t meet demand during this period, it risks driving loyal customers elsewhere and accelerating its decline.

Our take: The clock is ticking for Saks to chart a credible path to recovery. Without one, it risks becoming a textbook example of how quickly missteps and miscalculations can erode even the most established brands—especially in today’s complicated retail landscape, where luxury shoppers keep spending even as others pull back.

At the same time, Saks’s struggles could prove a gift to its competitors this holiday season. As the company loses ground, rivals like Nordstrom, Bloomingdale’s, and others have a chance to win over Saks’ once-loyal customers.