Saks Fifth Avenue à New York

* Q4 loss $0.52 ex-items, below Wall Street view $0.30

* Q4 sales drop nearly 15 percent

* Says downturn may be worst it has seen in its 84 years

* Shares down 1 percent pre-market (Recasts with estimates, details on 2009)

NEW YORK, Feb 25 (Reuters) - Upscale retailer Saks Inc (SKS.N) posted a much deeper-than-expected quarterly loss on Wednesday as its customers headed to sales racks or just cut spending outright in the worst holiday season in nearly 40 years.

Chief Executive Steve Sadove said the current economic downturn "perhaps is the most challenging that the company has faced in its 84-year history," adding that the tough environment would likely last through 2009 and possibly beyond.

Saks also forecast a same-store sales decline in the low double digits for the full fiscal year. Shares in the company fell 1 percent pre-market.

Saks reported a net loss of $98.8 million, or 72 cents a share, in its fiscal fourth quarter, ended Jan. 31, compared with a profit of $39.5 million, or 26 cents per share, a year earlier.

Excluding asset impairment, severance expenses and other items, Saks lost 52 cents a share, far below the average analyst expectation of a loss of 30 cents a share, according to Reuters Estimates.

Sales fell 14.9 percent to $835.5 million. Its New York City flagship store remained weak, Saks said.

Consumer cutbacks, spurred by job losses, tighter access to credit and weak home values, have hurt sales at upscale retailers like Saks rival Nordstrom (JWN.N) and mid-priced department store chains like J.C. Penney (JCP.N) and Macy's Inc (M.N). [nN24342025]

The retailer plans cost-cuts of $50 million to $60 million in the current year from previously announced job reductions and tightening its belt in other areas such as travel and marketing. It also plans to reduce capital expenditures for the fiscal year to $60 million -- down over 50 percent from 2008.

The company's shares slipped to $1.83 from Tuesday's close of $1.85 on the New York Stock Exchange. (Reporting by Aarthi Sivaraman; Editing by John Wallace and Steve Orlofsky)