HBC releases sales results
Hudson's Bay Company announces its sales latest sales figures and delivers its financial outlook for Fiscal 2016
Hudson’s Bay Company (HBC) has announced its comparable sales results for the nine week period ending December 31, 2016, and provided an update on its financial outlook for Fiscal 2016.
Jerry Storch, CEO, HBC says: “Our holiday sales trend improved considerably from what we experienced in the third quarter. On a constant currency basis, the comparable sales trend improved for the Company overall and across every banner, led by strong digital sales growth of 21.7 per cent at our department store banners. However, the sales improvement that we experienced was not strong enough to achieve the results we had expected.
"Also, while we were pleased with our performance at Hudson’s Bay in Canada, the retail environment has remained challenging in the U.S. and Europe and the significant promotional activity during the holiday period had a negative impact on our margins. This margin pressure was compounded by a declining value of the Euro compared with the Canadian dollar which impacts our translated earnings from HBC Europe.
"As we head into the new fiscal year, we are focused on continuing to delight our customers with exclusive product offerings and custom all-channel shopping experiences, and by creating exciting retail destinations to increase foot traffic in our stores. The retail environment is clearly changing, and we continue to work diligently across all of our banners to adapt rapidly. This involves evaluating all opportunities to increase the profitability of HBC, and we expect to provide further details on this process in the coming months.”
Comprehensive operational review
HBC continues its focus on improving its business operations as it adapts to a changing retail environment. Late in 2016, the Company launched a comprehensive review of its business operations to identify efficiencies, streamline processes and improve back of store productivity, while also enhancing customer service. Management expects that these initiatives will provide opportunities to increase profitability while ensuring that the Company is prepared to meet the challenges of an evolving retail environment. Over the coming months, the Company expects to provide additional details as work progresses.
For the nine week period beginning October 30, 2016 and ending December 31, 2016(1)
On a constant currency basis, consolidated comparable sales decrease of 0.7%
DSG (Hudson’s Bay, Lord & Taylor and Home Outfitters) comparable sales increase of 1.2%
Saks Fifth Avenue comparable sales decrease of 0.5%
HBC Off Price (Saks OFF 5TH and Gilt) comparable sales decrease of 5.2%
HBC Europe (GALERIA Kaufhof, Galeria INNO and Sportarena) comparable sales decrease of 0.6%
Total digital sales, which include Gilt on a pro forma basis, increase of 14.7% on a constant currency comparable basis. Excluding Gilt, total digital sales increase of 21.7% on a constant currency comparable basis.
Including the impacts of foreign exchange, consolidated comparable sales decrease of 2.0%
(1) Comparable sales are a Non-IFRS Measure. For the definition of comparable sales results expressed on a constant currency comparable basis, see “Non-IFRS Measures” below.