Hudson’s Bay Q2 loss rises from same time last year, revenue falls
The quarterly report comes a day after HBC announced a deal to merge its European business
TORONTO – Hudson’s Bay Co. had a $264 million net loss in its second quarter, up $63 million from its loss at the same time last year, due to the impact of foreign exchange, lower income tax benefits and a higher loss at discontinued operations.
Excluding the HBC Europe operations that will be merged into a strategic partnership announced Tuesday, Hudson’s Bay’s net loss from continuing operations was $147 million, which was $47 million more than last year’s second quarter.
HBC’s loss amounted to $1.12 per share, including 50 cents from discontinued operations and 62 cents from continuing operations.
Revenue for the owner of Hudson’s Bay, Saks Fifth Avenue and other retail chains was $2.16 billion for the quarter ended Aug. 4, down from $2.2 billion from a year earlier.
Comparable-store sales at Saks Fifth Avenue stores open at least a year was up 6.7 per cent.
Comparable sales at the division that includes Hudson’s Bay, Lord & Taylor and Home Outfitters stores fell 3.8 per cent. Comparable-store sales were down by 7.6 per cent at the Saks OFF 5th chain.
The quarterly report comes a day after HBC announced a deal to merge its European business, which owns Galeria Kaufhof and stores under other HBC banners, into a partnership that will also own the Karstadt retail business.
HBC chief executive Helena Foulkes said the Signa deal will earn HBC $616 million that will be funnelled into reducing debt.