Hudson’s Bay posts wider-than-expected loss on fewer stores, lower sales at Lord & Taylor
Canadian department store operator Hudson’s Bay Co. on Thursday posted a wider-than-expected loss and a 3.3 per cent fall in first-quarter revenue as it closed some stores and sales at its Lord & Taylor unit fell.
The owner of Saks Fifth Avenue and Lord & Taylor retail chains said earlier this week it was evaluating a $1.74 billion go-private cash offer from its Executive Chairman Richard Baker and other shareholders.
The company, North America’s oldest, said first-quarter comparable sales decreased 2.1 per cent, and excluding Lord & Taylor and Home Outfitters increased 0.3 per cent.
Same-store sales at its namesake stores tumbled 4.3 per cent in the quarter.
The struggling retailer has been shutting its underperforming shops to cut costs and exploring strategic alternatives such as a sale or merger of its department store Lord & Taylor. The company is also set to sell its stake in its real estate joint venture in Germany to Signa Retail Holdings in a deal valued at $1.5 billion.
The company reported a profit of $275 million, or $1.15 per share from continuing operations, in the first quarter ended May 4, compared to a loss of $398 million, or 72 cents per share, a year earlier.
First quarter net income included a $817 million gain from the sale of the Lord & Taylor flagship building in New York.
Excluding items, the company posted a loss of 87 cents per share, wider than the 56 cents loss based on estimates from 2 analysts, according to IBES data from Refinitiv.
Total revenue fell to $2.12 billion from $2.19 billion, a year earlier.
© Thomson Reuters 2019