Dec 9, 2014
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.
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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