Saks Purchase Boosts Hudson's Bay Q1

Hudson's BayTORONTO-Fueled by its acquisition of Saks, Hudson's Bay Co. posted net income of C$176 million (about $160.2 million) in its fiscal first quarter, compared to a net loss of C$82 million (about $80.4 million) in last year's first quarter.

The Saks acquisition, which closed last November, also drove Hudson's Bay's top line in the quarter, which ended on May 3. Net sales totaled C$1.9 billion (about $1.7 billion), up 110 percent from last year. Same-store sales finished the quarter up 2.8 percent.

Richard Baker, Hudson's Bay's governor and CEO, said the retailer's first-quarter performance was in line with its expectations. Baker added that the integration of Saks should produce about $50 million in synergies for the company. "We are encouraged by the business trends witnessed through the quarter, which bode well for the balance of this year," he said.

While the Saks purchase led to a 98 percent jump in selling, general and administrative expenses, SG&A as a percentage of sales were down 220 basis points to 36.7 percent. c fell 167 basis points to 38.6 percent.

Hudson's Bay said it expects total sales for the whole fiscal year to range between C$7.8 billion and C$8.1 billion ($7.7 billion to $8 billion, based on the current exchange rate). Same-store sales should grow by the low to mid-single digits, the company said.

HFN Staff | News & Commentary

HFN provides detailed information on the key home classifications: Housewares, Tabletop, Floor Covering & Rugs, Furniture, Home Textiles, Lighting, Home Decor, Mattresses & Bedding, Gifts, Major Appliances and Consumer Electronics as well as Business, Finance and Retail.

Videos

  • Patti Carpenter Talks Color and its Importance in the Home

    Camera Icon   More Videos

Subscribe to
HFN Omnichannel
Receive the news you need to know about the trends in the industry delivered right to your inbox.

Current Issue

  • HFN August 2017 cover

    HFN's DIGITAL EDITION

    August 2017


    COVER STORY: Sharpening the Focus on Millennials

    Find out what makes Millennials tick when it comes to home decorating, shopping and at-home entertaining with HFN's annual consumer study. Turns out, Millennials favor the in-store shopping experience.


    ALSO IN THIS ISSUE:

    • Power of the People - Crowdfunding campaigns provide needed capital, feedback for home and housewares product launches.
    •  Omnichannel Retailing: Visual Search Takes Off - Learn how voice and visual search are revolutionizing product discovery.