HBC Post Sales Gains Amid Tough Climate

Hudson’s Bay Co., bucking weak sales trends seen through much of the industry, reported that consolidated same-store sales rose 11 percent in the fourth quarter ended Jan. 31.

On a constant currency comparable basis, consolidated same-store sales gained 1.8 percent. Consolidated same-store sales include online sales.

By division, HBC’s North American department store group, which includes the Hudson’s Bay and Lord & Taylor chains, saw a 4 percent same-store sales increase. Same-stores sales at Saks Off 5th rose 2 percent; Saks Fifth Avenue declined 1.2 percent, and HBC in Europe, which includes Galeria Kaufhof, Galeria Inno and Sportarena, saw same-store sales increase 0.4 percent.

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Digital sales across the company gained 22.8 percent on a constant currency comparable basis.

Jerry Storch, chief executive officer, commented, “Our growth continued in the fourth quarter, as our team executed our strategies and focused on innovation around the world. Our retail banners are uniquely diversified across both geography and retail concepts. Online sales were especially strong, reflecting our focus on building superior digital capabilities and further integrating our brick-and-mortar and e-commerce businesses.”

It is believed that HBC benefitted by its diverse portfolio which includes traditional department stores, luxury stores and offprice stores. In addition, the company is believed to have benefitted by Canadians deciding to shop more at home, at Hudson’s Bay, and less across the border due to the strong U.S. dollar.

For the fiscal year ended Jan. 31, HBC reported consolidated same-store sales growth of 12.1 percent. On a constant currency comparable basis, consolidated same-store sales increased 2.5 percent.

By division, the North American department store group saw a same-store sales increase of 4.7 percent; Saks Off 5th rose 6.3 percent; Saks Fifth Avenue had a 1 percent decline in same-store sales, while HBC in Europe saw a same-store sales increase of 1.7 percent. Digital sales gained 23.2 percent on a constant currency comparable basis.