Feb 23 - Saks Inc reported a quarterly profit as it sold more items at full price and forecast continued sales growth at its established luxury department stores, sending its shares up nearly 5 percent.

Woman entering Saks Fifth Avenue flagship in Manhattan, NY

Saks suffered some of the worst sales declines among U.S. retailers during the recession. But sales at stores open at least a year rose 8.4 percent in the holiday quarter as shoppers resumed spending on expensive dresses, handbags and shoes from top brands such as Marc Jacobs, Versace and Oscar de la Renta.

The company said on Wednesday that it expected sales at stores open at least a year, or same-store sales, to rise by a mid-single digit percentage rate in its new fiscal year.

Saks said overall sales rose 6.8 percent to $866.3 million in the fourth quarter ended on Jan. 29.

Helping matters, shoppers did not need to be lured by bargains to go shopping, lifting gross margins rose by 1.3 percentage points to 37.8 percent of sales, Chief Executive Officer Steve Sadove said in a statement.

Sales gains at Saks' Fifth Avenue flagship store in Manhattan, which analysts estimate accounts for 10 percent of its business, and at the Off Fifth chain were just a bit below its overall same-store sales performance.

Echoing Tuesday's results from mid-tier department store chain Macy's Inc, Saks said it was selling more exclusive and private brand lines, which are more profitable. More than 10 percent of sales come from those lines now.

Saks reported fourth-quarter net income of $25 million, or 14 cents per share, compared with a year-earlier loss of $4.6 million, or 3 cents per share.

Excluding a gain from store closings and a one-time pension charge, the profit was 13 cents per share.

Saks has closed or said it would close seven of its department stores in the past year as it weeds out weaker locations, but it has expanded its Off Fifth outlet chain. It now operates 47 Saks Fifth Avenue stores and 57 outlets.

Saks shares were up 4.6 percent at $12.73 in premarket trading.

(Reporting by Phil Wahba, editing by Gerald E. McCormick and Lisa Von Ahn)