Hudson's Bay Slashes Q3 Loss

Hudson's BayTORONTO-As its integration of Saks continues, Hudson's Bay Co. reported a third-quarter net loss of C$13 million (U.S.$11.6 million), compared to a net loss of C$126 million (U.S.$114.2 million) for the third quarter of last year.

Bolstered by the acquisition of Saks, net sales in the quarter, which ended on Nov. 1, jumped 94.4 percent to C$1.9 billion (U.S.$1.7 billion). This included a gain of 2.7 percent in same-store sales.

Hudson's Bay's department-store group posted a same-store sales increase of 1.7 percent and a jump of 73 percent in digital sales. Same-store sales at Saks Fifth Avenue were up 1 percent, while Saks Fifth Avenue Off 5th reported a same-store sales pickup of 19.2 percent.

Gross margin in the quarter was 41.1 percent, up 90 basis points from the third quarter of last year. Selling, general and administrative expenses rose 92.2 percent in dollars but declined 41 basis points as a percentage of sales, to 36.1 percent.

Hudson's Bay said it expects sales for the fiscal year as a whole to total from C$7.8 billion to C$8.1 billion (U.S.$6.9 billion to U.S.$7.2 billion, based on current exchange rates), with same-store sales growth in the low to mid-single digits.

Richard Baker, the company's governor and CEO, said, "We continue to progress on the five core strategies of our long-term plan to grow our sales and expand our EBITDA margin. We remain committed to driving digital sales across all our banners, growing Off 5th, bringing Saks Fifth Avenue and Off 5th to Canada, driving outsized growth at our top doors and driving synergies and efficiencies across the business."

Baker also noted that Hudson's Bay's recently completed U.S.$1.25 billion, 20-year mortgage on the ground portion of the flagship Saks Fifth Avenue store in New York City "has strengthened our financial position by providing long-term, fixed-rate capital on highly attractive terms."

David GillDavid Gill | Senior Editor

David Gill covers home textiles, small electrics housewares, personal-care products, cleaning products, mattresses, consumer electronics and major appliances. He also reports on retailers and writes about the business and financial side of both vendors and retailers. He has more than 30 years of experience in business journalism, and has worked for other publications and websites that cover consumer products from both the manufacturer and retailer sides. His outside interests include sports (he is a big fan of the New York teams and of British soccer), cooking, movies and theater. He occasionally enjoys a good cigar as well.


Current Issue

  • HFN May digital issue


    May 2017

    COVER STORY: HFN Turns 90

    We commemorate HFN's 90th anniversary by paying tribute to the iconic retailer and supplier brands--and the people--that have helped the industry flourish, then and now.


    • Up & Coming Leaders - The home industry is in capable and visionary hands as this year’s 40 Under 40 list attests. Today’s young leaders span all disciplines and varied levels of operation.
    • Omnichannel Retailing - In the Mobile App World, Time is Money