- Prachi Singh
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In its statement for the first quarter, Hudson’s Bay Company (HBC) said,
first quarter revenues totalled 2.1 billion dollars, a decrease of 72
million dollars or 3.3 percent primarily due to operating fewer stores than
a year ago and the comparable sales decline at Lord + Taylor. HBC’s first
quarter comparable sales decreased 2.1 percent and increased 0.3 percent,
excluding Lord + Taylor and Home Outfitters.
“We are seeing progress on a number of crucial fronts from our continued
work to fix the fundamentals and reposition HBC for the future,”
said Helena Foulkes, HBC CEO in a statement, adding, “Strategically, we
have simplified the organization and placed a greater emphasis on our North
American retail operations.”
HBC’s comparable sales results by business segments
Saks Fifth Avenue’s first quarter comparable sales grew 2.4 percent,
while
Hudson’s Bay’s comparable sales decreased 4.3 percent in the first quarter.
Saks Off 5th returned to comparable sales growth of 4.4 percent.
Gross profit declined year-over-year by 48 million dollars, while gross
profit margin was 39 percent in the first quarter, down 90 basis points
year-over-year. The company added that approximately half of the decline is
due to store closures, with the balance driven by a higher proportion of
clearance sales in this year’s first quarter.
Net income was 275 million dollars, driven by the 817 million dollars
gain from the sale of the Lord + Taylor flagship building in New York City.
Excluding one time items, HBC’s normalized net loss was 209 million
dollars. Adjusted EBITDA was 44 million dollars, with North American
department stores contributing 6 million dollars and real estate joint
ventures adding 38 million dollars. Adjusted EBITDAR was 124
million dollars.
The HBC’s board of directors has declared dividend of 0.0125 cents per
HBC common share. As disclosed in May 2019, HBC is pursuing strategic
alternatives for the Lord + Taylor operating business, including a possible
sale or merger, and is closing Home Outfitters by the end of the second
quarter. On June 10, the company agreed to sell its remaining stake in its
German real estate joint venture, divest its related retail joint venture,
and assume certain obligations for a total consideration of 1.5 billion
dollars.
Picture:Facebook/Saks Fifth Avenue
