NEW YORK, Feb 1, 2026, 09:48 EST — Market closed
- Saks Global plans to shut down its “Saks on Amazon” storefront amid its Chapter 11 restructuring.
- Amazon shares ended the day 1.0% lower, closing at $239.30
- Amazon is set to report earnings on Feb. 5, followed by the U.S. jobs report the very next day
Saks Global is pulling the plug on its “Saks on Amazon” deal with Amazon.com (AMZN.O), according to a source familiar with the move, as the retailer navigates Chapter 11 bankruptcy. The partnership originated from Amazon’s $475 million investment earlier this year and obligated Saks to shell out at least $900 million over eight years. Amazon’s shares dropped 1.0% to $239.30 on Friday. A company spokesperson noted the luxury store is “adding more luxury brands regularly.” Investing.com
The breakup comes just days before Amazon’s quarterly results, with investors eager to see if those big bets are finally paying off—or just driving up costs. “For those companies where expectations have become very, very lofty, the onus is going to be on them to deliver,” said Jim Baird, chief investment officer at Plante Moran Financial Advisors. Traders are also eyeing the U.S. jobs report set for Feb. 6. Reuters
Stocks dropped Friday after Donald Trump picked Kevin Warsh to head the Federal Reserve, and wholesale inflation data came in hotter than expected. The Producer Price Index (PPI) for final demand jumped 0.5% in December. The S&P 500 slipped 0.4%, while the Nasdaq lost 0.9%, Reuters reported. Terry Sandven from U.S. Bank Asset Management described the chair pick as “an element of angst,” with investors worried about capital expenditures — spending on data centers and other equipment. Reuters
Amazon will webcast its Q4 2025 earnings call on Feb. 5 at 5:00 p.m. ET, the company announced.
The Saks wind-down is minor compared to Amazon’s main retail and cloud businesses. Yet it raises a familiar issue: just how far a mass-market platform can stretch into luxury without alienating brands.
Amazon’s stock movement this week will hinge largely on its latest demand figures across key segments, offering clues about consumer spending. Investors are also keen to catch any shifts in the company’s pace of expanding warehouses, delivery networks, and AI computing resources.
Cloud remains the pressure point. Amazon Web Services drives profits, and the market watches AWS closely as a gauge of wider enterprise tech demand.
Competitive checks are swift. Investors compare Amazon directly with Microsoft and Alphabet, focusing on cloud growth and the expenses of deploying AI tools at scale.
Traders will focus on discretionary demand following the holiday quarter, watching closely for signs from the consumer side. At the same time, Amazon’s ability to control shipping and fulfillment expenses while accelerating delivery speeds will be under scrutiny for its impact on margins.
However, the stock may take a hit if the report reveals weaker cloud demand, slimmer margins, or a bigger jump in capital spending than investors expect. The Saks issue could also become a legal headache if it lingers in bankruptcy court.
Trading picks back up Monday, with investors watching to see if the Saks headline holds sway or gets lost amid earnings chatter. The next major events to watch are Amazon’s results on Feb. 5 and the U.S. jobs report set for Feb. 6.
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