Hudson's Bay returns to profitability
Home & Textiles Today Staff -- Home Textiles Today, December 11, 2013
Toronto - Hudson's Bay Company during the third quarter generated strong same-store sales growth at Hudson's Bay stores in Canada and online and saw a return to positive same-store sales growth at Lord & Taylor in the U.S.
Net earnings reached C$8.9 million, or 7 cents per share, compared to a net loss of C$300,000, or $0.00 per share, a year ago.
Total retail sales rose 5.8% to C$984.1 million, with consolidated comp up 5.7% (or 3.8% on a constant currency basis). Same-store sales rose 6.4% at Hudson's Bay and 1.6% gain on a U.S. dollar basis at Lord & Taylor;
HBC's e-commerce sales jumped 58.3% to C$48.9 million.
Home was not a key performer in the Hudson's Bay stores and is offered only online at Lord & Taylor. The company does not break out sales results for Home Outfitters.
For the year-to-date period, net loss from continuing operations narrowed to C$1.5 million, or 1 cent per share, compared to a net loss of C$25.5 million, or 24 cents per share, a year ago.
Sales rose 4.7% increase C$2.8 billion, with a 4.4% gain in consolidated same store sales (or 3.3% on a constant currency basis). Same-store sales were up 6.7% at Hudson's Bay and down 0.3% at Lord & Taylor. Ecommerce sales for the first nine month climbed 50.0% to C$117.3 million.
In 2014, the company will focus on Saks, which it acquired last month. HBC is looking to leverage economies of scale by operating three luxury retail department store nameplates, according to Richard Baker, the company's governor and ceo.
"We are determined to take full advantage of this and deliver $100 million in synergies over the next three years," he said.
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