- Prachi Singh |
Hudson’s Bay Company (HBC) reported revenue of 2,187 million Canadian dollars (1,647 million dollars), an increase of 115 million Canadian dollars or 5.6 percent for the third quarter with comparable sales increase of 2.9 percent and comparable digital sales increase of 8 percent. The company said, adjusting for the impact of the shift of Hudson Bay’s “Bay Days” promotional event into the third quarter from the fourth quarter, total comparable sales increased 1.2 percent. For the third quarter, comparable sales at Saks Fifth Avenue increased 7.3 percent, at DSG (Hudson's Bay, Lord & Taylor and Home Outfitters), by 0.9 percent but adjusting for the “Bay Days” promotional shift, comparable sales declined 2.4 percent and at Saks Off 5th, comparable sales decreased by 2.3 percent.
“We are encouraged by the ongoing improvement of our business, with year to date adjusted EBITDA of 151 million Canadian dollars, up 106 million Canadian dollars from the prior year. The bold strategic actions we are taking are beginning to pay off, and the recent closing of the European transaction will now allow us to concentrate on the North American business,” said Helena Foulkes, HBC’s Chief Executive Officer in a statement.
Review of HBC’s third quarter results
For HBC overall, gross profit as a percentage of revenue was 39.4 percent, an improvement of 10 basis points. Adjusted EBITDA was 63 million Canadian dollars (47.4 million dollars0, an increase of 23 million Canadian dollars, while Adjusted EBITDAR increased 20 million Canadian dollars to 141 million Canadian dollars (106 million dollars).
Net loss from continuing operations was 124 million Canadian dollars (93.3 million dollars) compared to 116 million Canadian dollars in the prior year driven by higher depreciation and amortization expenses and a higher reported loss from the company’s share in the joint ventures, largely driven by the impact of non-cash foreign exchange. Normalized net loss was 96 million Canadian dollars (72 million dollars) compared to 95 million Canadian dollars in the prior year.
HBC Europe generated total sales of 974 million Canadian dollars (733 million dollars) in the third quarter, an increase of 0.4 percent compared to the prior year, while comparable sales declined 2.1 percent. Adjusted EBITDA was negative 39 million Canadian dollars (29.3 million dollars), compared to negative 6 million Canadian dollars in the prior year, driven by lower comparable sales and gross profit Canadian dollars and higher rent expenses, largely driven by new store openings over the last 12 months. Net loss was 41 million Canadian dollars (30.8 million dollars) compared to 107 million Canadian dollars in the prior year.
During the third quarter, HBC opened one Hudson’s Bay store in Montreal, Quebec and one Saks Off 5th store in Calgary, Alberta. The company closed one Hudson’s Bay store in Montreal, Quebec and one Home Outfitters store in Halifax, Nova Scotia.
HBC also announced that its board of directors has approved a regular quarterly dividend of 0.0125 dollar per HBC common share.
Picture:Facebook/Saks Fifth Avenue