#CBC: « HBC posts 2nd quarter sales growth, deeper net loss – Business »
Hudson’s Bay Co. on Tuesday reported higher second-quarter retail sales, led by digital growth.
The company said after the close of stock market that its retail sales increased 1.2 per cent to $3.3 billion.
HBC said the sales increase stemmed mainly from the opening of three new Saks Fifth Avenue stores, 26 new Saks OFF 5TH stores and five new Saks OFF 5TH Europe stores. The company said those store openings contributed approximately $64 million in sales.
However, that boost was offset by lower overall comparable sales of approximately $43 million and a $41 million impact from store closures.
HBC said its digital sales were up 12.7 per cent from the prior year.
The company’s net loss for the quarter for the quarter was $201 million compared to $142 million in the same period of last year. HBC attributed the larger net loss primarily to lower gross margins along with higher expenses for sales and administration, along with depreciation and amortization.
The venerable company announced back in June that it was cutting 2,000 jobs amid a reorganization. The firm has also been under pressure recently from a minority shareholder that has called on HBC to monetize some of the value in its real estate.
HBC management offered a positive take on where the company currently stands.
« Heading into the fall season, we are optimistic about the remainder of the year, » Richard Baker, HBC’s governor and executive chairman, said in a release.
« The current retail environment provides both challenges and opportunities, and while it was a tough second quarter as expected, we continue to make the smart decisions necessary to succeed in this rapidly evolving landscape, » he said.
HBC said it anticipates realizing more than $350 million in annual savings when its reorganization plan is fully implemented by the end of its 2018 fiinancial year.
Note: « Previously Published on: 5 September 2017 | 10:15 pm, as ‘HBC posts 2nd quarter sales growth, deeper net loss – Business’ on CBC RADIO-CANADA. Here is a source link for the Article’s Image(s) and Content ».