Hudson’s Bay Company released some earnings for the quarter beginning May 1, 2016 and ending July 30, 2016(1)
- Consolidated comparable sales increase of 1.9%
- On a constant currency basis, consolidated comparable sales decrease of 1.3%
- DSG (Department Store Group) comparable sales increase of 1.1%
- HBC Off Price (Saks OFF 5TH and Gilt) comparable sales decrease of 11.4%, cycling against an increase of 12.7% reported in the prior year
- Saks Fifth Avenue comparable sales decrease of 1.3%
- HBC Europe (GALERIA Kaufhof, Galeria INNO and Sportarena) comparable sales decrease of 0.9%
- Total Digital Sales increase of 1.4% on a constant currency comparable basis. Excluding HBC Off Price, total Digital Sales increase of 17.3% on a constant currency comparable basis.
“During the second quarter, we continued to innovate and to execute our strategy, which we believe differentiates us from other retailers,” said Jerry Storch, chief executive officer, HBC. “Our results reflect our diversification across both geography and retail concepts. Saks Fifth Avenue improved considerably despite the continued decline in tourism. At Saks OFF 5TH, as discussed last quarter, we significantly reduced promotional activity compared to the prior year, which has increased margins substantially while reducing sales. In addition, at Gilt, which is included in the HBC Off Price business and is a major component of our digital comparisons, we enhanced the return policy. As we look to the second half of the year, we expect the execution of our all-channel strategy combined with overall improvements in the retail environment to drive comparable sales growth.”
HBC will announce full financial results for the quarter ended July 30, 2016 after the market closes on September 6, 2016.