Saks Purchase Boosts Hudson's Bay Q1
Posted on June 3, 2014 by
TORONTO-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.