Hudson’s Bay Company reports sales surge
Homeware retail giant Hudson’s Bay Company has reported its
fourth quarter and fiscal 2015 financial results
Hudson's Bay Company (“HBC” or the “Company”) (TSX: HBC) has announced its financial results for the fourth quarter and fiscal year ended January 30, 2016 (“Fiscal 2015”).
The results show that in the fourth quarter consolidated sales increased 70.4 per cent to $4.5 billion
HBC’s governor and executive chairman, Richard Baker, says: “I am proud of HBC’s many accomplishments in 2015. The diversity of our banners in terms of geography and consumer segment helped us navigate a challenging retail environment and resulted in 2015 comparable store sales growth of 2.5 per cent on a constant currency basis.
In 2015, HBC continued its track record of making targeted retail acquisitions with the closing of the Galeria acquisition on September 30, “which we expect to grow the Company’s revenue by approximately 50 per cent”, says Richard.
The largest department stores in both Germany and Belgium are now part of the HBC family. Subsequent to the Galeria acquisition, HCB sold a portion of their equity in HBS Global Properties, their global real estate joint venture, and used the proceeds to deliver HBC’s balance sheet.
“This is just one example of how we are able to utilise our real estate holdings to enhance our financial flexibility. I am very thankful to the entire HBC team for their achievements in 2015.”
HBC’s chief executive officer, Jerry Storch, adds: “For our leading retail banners, 2015 was a story of fostering innovation while focusing on operational efficiencies. In the face of a challenging retail environment, our teams came together and we continued our relentless focus on our customers. Our 2015 comparable digital sales growth of 23.2 per cent on a constant currency basis is the result of our innovative offerings delighting our customers, as well as enhancements that we have made to our e-commerce platforms and fulfillment capabilities. Our all channel model is further enhanced with the February 1st acquisition of Gilt, and we are working on integrating its industry leading mobile and personalisation capabilities across our banners.”
Jerry says that throughout the year, HBC focused on increasing operational efficiencies and were able to generate new savings of over $60 million during the year as the result of the Saks integration and their North American realignment initiative.
Jerry adds: “Our expense reduction initiatives are an ongoing process, and we will continue our focus on increasing operational efficiencies and implementing best practices across our banners throughout 2016.