The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
BRAMPTON, Canada — Hudson's Bay reported Wednesday a quarterly profit that topped estimates, as sales at its Saks Fifth Avenue stores rose during the holiday shopping season and the Canadian company benefited from an increase in online sales.
Comparable sales at Saks rose almost 4 percent, while the company's total comparable digital sales, which includes online transactions, rose 8.7 percent in the quarter.
Chief executive Helena Foulkes said Saks Fifth Avenue stores outside New York City fuelled sales, as the iconic Fifth Avenue flagship in Manhattan was undergoing renovation.
"Saks has been particularly good at identifying both top stores and top customers to invest in, and I see that as a real opportunity at Hudson's Bay," Foulkes told Reuters.
ADVERTISEMENT
The company's total fourth-quarter comparable sales decreased 1.4 percent. Same-store sales at Hudson's Bay, Lord & Taylor and Home Outfitters tumbled 5.2 percent in the quarter.
Foulkes said the company had an opportunity to win Sears Canada customers after the struggling retailer shuttered its stores but "took it too far" by adding too much merchandise at too many Hudson's Bay department stores aimed at appealing to a lower-end customer.
HBC, which has been shutting underperforming stores to cut costs, posted a C$226 million ($170 million) loss from continuing operations in the fourth quarter, on the back of a restructuring charge of C$194 million.
The company also entered into a joint venture for its European business, sold its unprofitable online brand Gilt and has said it will close up to 10 struggling Lord & Taylor stores after selling the brand’s flagship building in Manhattan.
After adjusting for one-time items, the company earned 41 Canadian cents per share, beating the analyst average estimate of 25 Canadian cents, according to IBES data from Refinitiv.
Hudson's Bay shares were flat in early Wednesday trade.
By Melissa Fares and Arundhati Sarkar; editor: Arun Koyyur.
The Japanese apparel chain will be launching its sister brand GU in the US later this year, targeting younger consumers with lower prices and a curated selection of trendy wares.
Canada, France and Ireland are among the countries working with home-grown fashion talent to create uniforms for their teams at this summer’s Olympic Games. For these small labels, it’s an unprecedented opportunity to capitalise on one of sports’ largest events.
The online fashion retailer plans to update China’s securities regulator on the change of the initial public offering venue and file with the London Stock Exchange as soon as this month, a person with knowledge of the matter said.
The company, under siege from Arkhouse Management Co. and Brigade Capital Management, doesn’t need the activists when it can be its own, writes Andrea Felsted.