Dec 9, 2014
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Saks owner Hudson's Bay posts smaller loss

Dec 9, 2014

Canadian department store operator Hudson's Bay Co posted a smaller quarterly loss, helped by higher same-store sales, its purchase of U.S. upscale retailer Saks Inc last year and lower acquisition-related finance costs.

Same-store sales at the company's stores, including Hudson's Bay outlets and its U.S.-based Lord & Taylor chain, rose 1.7 percent in the third quarter ended Nov. 1.

Hudson's Bay

Comparable sales at Saks Off 5th outlets rose 19.2 percent, while those at Saks Fifth Avenue stores increased 1 percent.

Hudson's Bay said its net loss from continuing operations narrowed to C$13 million ($11.4 million), or 7 Canadian cents per share, from C$126 million, or C$1.05 per share, a year earlier.

Retail sales nearly doubled to C$1.91 billion.

Acquisition-related finance costs plunged to C$12 million from C$123 million.

Hudson's Bay also maintained its 2014 forecasts for sales and earnings before interest, taxes, depreciation and amortization.

The company outlined a $1.25 billion refinancing plan last month to reduce interest payments on debt it took on after buying Saks. Hudson's Bay bought Saks for $2.4 billion and assumed $500 million of the U.S. company's debt.

The Canadian retailer's shares closed at C$23.49 on the Toronto Stock Exchange on Monday.

Up to Monday's close, the stock had risen 51 percent from its near two-year low of C$15.53 hit on Feb. 7.

$1 = C$1.15 = £0.56

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