Thursday, March 29, 2018

Hudson’s Bay Co. swings to profit in Q4, but ‘not pleased’ with performance

Chain Store Age

Despite capitalizing on the value of its real estate portfolio and swinging to its first profit in eight quarters, Hudson’s Bay Co. missed earnings expectations for the fourth quarter. Disappointing performances by the retail giant’s European chain, discount banners, and Lord & Taylor, and problems with its cost-cutting plan, all took a toll on the retail giant, whose overall same-store sales fell.

Retail sales increased 2.1% to C$4.7 billion, helped by an additional week of sales. Overall comparable sales across all banners during the quarter decreased 2.4%. Same-store sales fell 2.6% at the department store group, consisting of Hudson’s Bay, Lord & Taylor and Home Outfitters, amid lower traffic. The company’s discount banners, including Gilt and Sake Off-Fifth, also did not perform well. A bright spot was Saks Fifth Avenue, whose same-store sales rose 2.1%, the third consecutive quarter of growth.. . . more