Shopping fears
HBC reports strong sales, but warns of terror impact on European stores.
Department store operator Hudson’s Bay Co. posted a 34- per- cent rise in quarterly sales, helped by higher samestore sales in North America and Europe and strong online sales.
However, the company cut its sales forecasts for 2015 and 2016, citing among other reasons the impact of terrorism incidents on its businesses in Belgium and Germany.
The company, which has been opening stores in North America including Saks and Saks Off 5th, said total samestore sales — a key measure for retailers — rose 12.9 per cent in the third quarter. Online sales jumped 36.3 per cent in the quarter ended Oct. 31.
The company, which bought Germany’s Kaufhof department store chain in June from Metro for 2.8- billion euros ($ 4.2 billion) to expand into Europe, said last month it was planning more acquisitions.
Hudson’s Bay also plans to increase sales significantly over the next five years at about 136 Kaufhof stores in Germany and Belgium.
North American retailers are hoping for a strong holiday season after a less- thanexciting back- to- school quarter, which led to a sell- off in retail stocks.
Hudson’s Bay cut its 2015 sales forecast to $ 10.7 billion-$11.2 billion, from $11 billion-$11.5 billion.
The company reduced its 2016 sales guidance to $ 14.2 billion-$ 15.2 billion, from $14.5 billion-$15.5 billion.
The Bay said Thursday total sales rose to $ 2.57 billion in the quarter, from $1.91 billion a year earlier. Net profit was $1 million, or one cent, compared with a net loss of $ 13 million, or seven cents per share. Excluding certain items, the firm posted a loss of four cents per share. Hudson’s Bay closed up four cents Thursday to $19.90.