Amazon Loses Saks Partnership and Cuts 2,200 Washington Roles

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Amazon.com will lose its luxury partnership as Saks shuts down their high-end collaboration, and the company cut 2,200 Washington roles, predominantly in software development and engineering. Argus Investors Counsel reduced its position by 20.4% to 12,628 shares valued at $2.77 million during Q3, making Amazon its 16th largest holding.

1. Saks Ends Luxury Partnership with Amazon

After three years of collaboration, Saks Fifth Avenue has decided to terminate its luxury storefront on Amazon’s platform. Launched in late 2020 as a bid to tap into high-end online shoppers, the arrangement never gained sufficient traction: luxury items represented less than 0.5% of Amazon’s total apparel and accessories revenue in 2025. Despite featuring over 200 designer labels including Gucci, Saint Laurent and Balenciaga, the bespoke shopping experience failed to meet mutual sales targets, with quarterly unit sales falling 15% short of projections. The decision underscores Amazon’s ongoing challenge in translating its mass-market dominance into the ultra-premium segment, while Saks refocuses on its own e-commerce site and expanding physical concessions.

2. Valuation Case Builds Ahead of Q4 Earnings

As Amazon prepares to report fourth-quarter results, the stock trades at a meaningful discount relative to its so-called Magnificent Seven peers, with a forward price/earnings-to-growth multiple of 1.9x and an enterprise value to EBITDA multiple of 15.7x. Consensus forecasts call for mid-teens percentage revenue growth and low-single-digit percentage improvement in operating margins, driven by steady expansion of its cloud-services division and continued investment discipline. Analysts note over 30% of total operating expenses were redirected away from marketing and fulfillment into technology and content development in the past year, positioning the company to convert backlog into higher-margin revenue streams once customer adoption of its generative AI tools accelerates.

3. Melania Documentary Leaves Amazon $75 Million in the Red

Amazon MGM Studios’ documentary on First Lady Melania Trump posted a $7 million opening weekend—the biggest non-concert, non-fiction debut in ten years—but the economics paint a different picture. The studio paid $40 million for distribution rights and committed an additional $35 million to promotion, resulting in a $75 million theatrical deficit. Despite over-performance in strongholds like Texas and Florida—where theaters in Dallas–Fort Worth and Tampa ranked it among the weekend’s top ten earners—the film holds just a 10% critics rating and faces stiff competition from the Super Bowl and new theatrical releases targeting younger demographics. Industry insiders contend the expenditure reflects a strategic branding play rather than a break-even profit model.

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