Hudson's Bay reports loss, sees little Target overlap

Tue Dec 11, 2012 3:36pm EST
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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.


Hudson's Bay, North America's oldest continually operating company, reported its first quarterly results on Tuesday since the initial public offering.   Continued...