What: Saks.com is adopting a cautious approach to 2023 as they see a deceleration in growth.

Why it is important: While the e-commerce business has increasingly seen success after splitting from Saks Fifth Avenue, the retailer is preparing for a more normalized year in the current economic climate.

Saks.com has seen two years of strong growth in volume, product choices, customers, and services following its split from Saks Fifth Avenue. The company is expecting 2023 to be a more normalized and challenging environment as consumers slow their discretionary spending.

The luxury e-commerce business plans to focus on scale and efficiency and predicts that there will be pockets of strength and pockets of softness this year. While footwear and handbag were top-performing categories over the last few years, sportswear and eveningwear will be stronger categories this year.

In Q4, the gross merchandise volume was up 11% with the top-performing categories being dresses, eveningwear, and women’s contemporary ready-to-wear.

After a run of quarterly gains, Saks tempers its 2023 outlook