Hudson's Bay reports loss, sees little Target overlap
By Allison Martell
(Reuters) - Hudson's Bay Co's (HBC.TO: Quote) chief executive said on Tuesday that he does not see Canadian customers taking their business away from his department stores when Target Corp (TGT.N: Quote) makes its debut north of the border in the spring.
Shares of HBC, which operates Hudson's Bay in Canada and Lord & Taylor in the United States, have languished since the company's November IPO. That partly reflects concern that Target - which bought its first Canadian leases from HBC - will derail HBC's turnaround once its stores open.
"We made the deal with Target, so we did a tremendous amount of analysis before we made that deal," CEO Richard Baker told Reuters on Tuesday after the company posted a quarterly net loss, and warned that the impact of Superstorm Sandy would weigh on sales in the current period.
"While they are a similar customer, there is very, very little product overlap."
Customers will buy different products at Hudson's Bay and Target, Baker said. When a new Target location opens south of the border, nearby Lord & Taylor stores have not been affected at all, he said.
HBC fell 0.4 percent to C$16.75 on Tuesday afternoon on the Toronto Stock Exchange. The stock has been pinned below its C$17 offer price since its first day of trading.
FIRST RESULTS SINCE IPO
Hudson's Bay, North America's oldest continually operating company, reported its first quarterly results on Tuesday since the initial public offering. Continued...