On a recent January morning, tourists admired the rows of Balenciaga and Burberry handbags on display at Saks Fifth Avenue's flagship midtown Manhattan location. But a conversation on the second floor hinted at financial troubles at one of America's most iconic luxury department stores. Penelope Nam-Stephen, a longtime customer, approached the Diptyque counter in search of a home fragrance that she had typically bought at Saks. Nam-Stephen, who splits her time between New York City and Boston,