Hudson's Bay revenue jumps after Europe expansion, online push
today Jun 10, 2016
Canadian retailer Hudson's Bay Co reported better-than expected quarterly sales as it benefited from its expansion in Europe and the acquisition of online retailer Gilt.
Hudson's Bay, the oldest continuously operating company in North America, has expanded into Europe to mitigate the impact of decreased consumer spending in the United States and Canada.
Last month, the company said it would open as many as 20 stores in the Netherlands over the next two years.
However, the company reported a bigger-than-expected loss for the first quarter, hurt by higher costs and rent expenses related to the company's real estate joint ventures.
Same-store sales at the company's department store group, which includes Hudson's Bay and Lord & Taylor chains, rose 2.3 percent, while HBC Europe rose 0.7 percent. Total same-store sales rose 4.4 percent.
Same-store sales at its upscale Saks Fifth Avenue fell 5.7 percent as consumers continued to shun luxury items.
Total sales rose 59.4 percent to C$3.30 billion ($2.6 billion). Analysts on average had expected revenue of C$3.28 billion, according to Thomson Reuters I/B/E/S.
The company also maintained its sales forecast at a time when U.S. department store operators such as Macy's Inc (M.N) and Nordstrom Inc cut their full-year profit forecasts as shoppers spend less on apparel.
The company's net loss widened to C$97 million, or 53 Canadian cents per share, in the first quarter from C$49 million, or 27 Canadian cents per share, a year earlier.
Excluding items, the company reported a loss of 50 Canadian cents per share, larger than the average analyst estimate of 36 Canadian cents.
($1 = 1.2718 Canadian dollars)
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