Saks Inc., the U. S. luxury department store operator, reported its fourth-quarter earnings that exceeded analysts' estimates after trimming discounts and expenses.

Saks posted a fourth-quarter net loss to be $4.6 million, or 3 cents per share, compared with a loss of $99.7 million, or 72 cents per share, the previous year.

"We believe there is more stability and predictability in our business compared to this time last year; however, the overall environment remains somewhat uncertain and challenging, and we are approaching 2010 with continued caution", CEO Stephen Sadove said in a news release.

The company, which was one of the hardest hit retailers during the financial meltdown, also revealed its plans to cut down on the number of days it offers promotional sales with an aim to help boost margins.

However, excluding one-time items, earnings were 6 cents a share, in contrast with the average analyst prediction of a loss of 2 cents a share, according to Thomson Reuters I/B/E/S.

After months of falling sales, Saks' same-store sales picked up speed during the holidays, and in January, rose 7 percent. But the company still lagged larger rival Nordstrom Inc., whose comparable sales were up 14 percent that month.