Wednesday December 11th, 2013 - 10:55AM
Hudson's Bay Company reported that its third quarter results for the 13-week period ended November 2, 2013 was characterized by strong same-store sales growth at Hudson's Bay and online and a return to positive same-store sales growth at Lord & Taylor.
“HBC’s third quarter results demonstrate continued sales momentum as we move into the key holiday season,” stated Richard Baker, HBC’s governor and CEO. “Hudson’s Bay continues to generate industry-leading sales growth, further establishing a trend of strong performance and providing evidence of the strength of our strategic initiatives. Lord & Taylor recorded its first quarterly same store sales increase since the third quarter of last year. The improvement at both banners was bolstered by the continued impressive growth of our e-commerce business.”
With regard to same store sales, consolidated same store sales grew 5.7%, or 3.8% on a constant currency basis; Hudson's Bay same store sales grew 6.4%; and Lord & Taylor same store sales grew 1.6% on a U.S. dollar basis. E-commerce sales were $48.9 million, an increase of 58.3% compared to the third quarter of 2012. Normalized EBITDA was $64.3 million, an increase of $16.4 million compared to the third quarter of 2012.
Hudson's Bay Company also opened both a full line Lord & Taylor store in Boca Raton, FL, and five new Topshop/Topman stores across Canada, as well as completed significant renovations at six locations across North America.
Baker added: “The critical holiday period is now upon us, and we are focused on making it a success. While we would prefer our year-to-date performance to have been stronger, our investments in both store productivity and our omni-channel platform have produced clear and promising results. We are confident that these investments are necessary and will benefit earnings over the long-term. Further, the addition of Saks will allow us to leverage these investments over a larger platform.”
“As 2014 approaches, we are focused on the integration of Saks, the newest addition to our retail family. This is a transformational period in HBC’s history, and the addition of one of the world’s most recognized luxury retailers provides us with the ability to offer our customers an impressive range of shopping experiences," he said. " Saks also provides us with the opportunity to create considerable economies of scale. We are determined to take full advantage of this and deliver $100 million in synergies over the next three years. The combination of our three iconic banners creates significant growth potential for our business, and it is our responsibility to ensure this potential is realized.”