Saks swung to a smaller-than-expected loss as it slashed costs amid plunging demand for pricey clothing and handbags.

The owner of Saks Fifth Avenue said it’s cutting pay for many employees by 3 percent to 7 percent. Saks shares rose 73 cents to $4.81.

Separately, media reported that Diego Della Valle — an Italian luxury tycoon who is CEO of handbag maker Tod’s — aims to present a “relaunch plan” to Saks management in the coming days. Last Friday, Della Valle revealed he owned a 5.9 percent stake.