Hudson's Bay posts wider-than-expected loss


spaminator
#1
Hudson's Bay posts wider-than-expected loss
Reuters
Published:
June 13, 2019
Updated:
June 13, 2019 4:53 PM EDT
A woman walks through the arches of the Hudson's Bay store in downtown Calgary on Monday, April 3, 2017. Lyle Aspinall / Postmedia Network
Canadian department store operator Hudsonís Bay Co. on Thursday posted a wider-than-expected loss as sales at its Lord & Taylor unit fell, but said it was optimistic about its ability to deal with the impact of U.S. tariffs on Chinese goods.
Shares of the company were up about 1% at $9.39 in afternoon trading.
Hudsonís Bay, which also owns Saks Fifth Avenue, said earlier this week it is evaluating a $1.74-billion take-private cash offer as it competes with discount direct-to-consumer brands and e-commerce behemoths like Amazon.com Inc.
The offer was put together by executive chairman Richard Baker and the retailerís other shareholders.
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Hudsonís Bay chief executive officer Helena Foulkes, who is not part of the shareholder bid group, highlighted the companyís success at Saks, particularly in its fast-growing menís business, and at Hudsonís Bay, due to investments in improving the mobile app and its buy-online pick-up-in-store business.
Foulkes told Reuters she expects to see the benefits of cost-cutting, including from the shuttering of underperforming shops, in the second half of the year.
Company executives told investors on an earnings call that Hudsonís Bay had not seen any impact from U.S. tariffs on Chinese imports and that it expects to use aggressive inventory and supply chain management to offset a potential further round of American tariffs on Chinese goods.
U.S. President Donald Trump has threatened to impose up to 25% tariffs on an additional $300 billion in Chinese imports if the two sides cannot reach a trade deal.
ďOur merchants are prepared to work with the vendor community to lessen the impact on HBC and our customers,Ē chief financial officer Edward Record said. ďWe hope the tariffs donít go in place, but if they do, we think we are well-positioned, given the more than 70% of revenue we have in Canada and in luxury retail.Ē
Hudsonís Bay, North Americaís oldest company, also said earlier this week it would sell its stake in its real estate joint venture in Germany to Signa Retail Holdings in a deal valued at $1.5 billion, with the proceeds to be used to pay down debt.
Lower debt would also make Bakerís take-private deal easier to finance.
The company said first-quarter comparable sales decreased 2.1%. Excluding Lord & Taylor and Home Outfitters, which are both undergoing strategic reviews, same-store sales rose 0.3%.
Same-store sales at its namesake stores tumbled 4.3% in the quarter.
The bright spot for Hudsonís Bay in the first quarter was its upscale Saks Fifth Avenue business registering a 2.4% rise in same-store sales as customers spent more on menís and womenís apparel. The retailerís off-price business, Saks Off Fifth, saw a 4.4% bump in same-store sales due to investments made in targeted marketing and product assortment.
Rivals Macyís Incís off-price Backstage business and Nordstrom Incís Nordstrom Rack discount stores have also hit a sweet spot with shoppers on the hunt for a good bargain.
The company reported net profit from continuing operations of $275 million, or $1.15 per share, in the first quarter ended May 4, compared with a loss of $132 million, or 72 cents per share, a year earlier.
First-quarter net income was buoyed by a $817 million gain from the sale of its iconic Lord & Taylor Fifth Avenue flagship building in New York to WeWork and partner RhŰne Capital.
Excluding items, the company posted a loss of 87 cents per share, wider than the 56 cents loss based on average estimates from two analysts, according to IBES data from Refinitiv.
Total revenue fell to $2.12 billion from $2.19 billion a year earlier.
Shares of the company had fallen 12.6% this year before Bakerís offer earlier this week pushed shares up by as much as 48%.
http://torontosun.com/business/money...-expected-loss
 
Danbones
#2
It would be nice if Hudson's Bay would post more.
 
petros
+2
#3  Top Rated Post
Do they still accept furs at the posts?
 

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