For the 13 weeks ended November 1, Hudson’s Bay Co. posted a net loss of Canadian $13 million, or seven cents per diluted share, versus a net loss of C$125 million, or $1.05 per diluted share, in the year-prior third quarter. Sales, according to the company, were $1.91 billion in the quarter versus $984 million in the 2013 period, while, on a local currency basis, comparable store sales increased 2.7%.
On an adjusted basis, Hudson’s Bay missed a published Thomson Reuters average analyst estimate by three cents per share. The current exchange rate is one United States dollar equals C$1.14.
The sales increase is largely attributable to the inclusion of the recently acquired Saks operation, Hudson’s Bay noted. Men’s apparel, ladies’ shoes, cosmetics and TopShop/TopMan stores drove sales growth at the department store group, including Hudson’s Bay and Lord & Taylor units. Menswear, accessories and fragrances led sales growth at Saks Fifth Avenue. Sales growth at Off 5TH was strong across the majority of categories, Hudson’s Bay reported.
Comps at the department store group, including Hudson’s Bay stores in Canada, increased 1.7%, the company related. Comps for the Saks Fifth Avenue division advanced by 1% while those for Saks Off 5th increased 19.2%. Sales in the company’s e-commerce division increased to $228 million including an increase of 73% at DSG. In the quarter, Hudson’s Bay opened one new Lord & Taylor store, one new Hudson’s Bay Outlet store and three new Off 5th locations, the company maintained.
“We remain on track with our integration of Saks and continue to gain traction on our strategic growth initiatives, especially at HBC Digital where we experienced substantial sales growth,” stated Richard Baker, HBC’s governor and CEO. “We are well-positioned for the holiday shopping season with a value proposition underpinned by differentiated merchandising and superior customer service initiatives across all our banners. 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 our business. In addition, our recently completed US $1.25 billion, 20-year mortgage on the ground portion of our Saks Fifth Avenue flagship in New York City has strengthened our financial position by providing long-term, fixed-rate capital on highly attractive terms.”