Canadian retailer Hudson's Bay cuts revenue forecast
(Reuters) - Hudson's Bay Co HBC.TO, the owner of U.S. luxury retail chain Saks Fifth Avenue, cut its full-year revenue forecast for the second time, citing a challenging retail environment in the United States and Europe.
The Canadian company said its consolidated comparable sales decreased by 0.7 percent on a constant currency basis in the nine-week holiday selling period ended Dec. 31.
Disappointing holiday-season sales were reported by Macy's Inc (M.N: Quote) and Kohl's Corp KSS.N last week as shoppers turned to online retailers. Both the companies had also cut their full-year profit forecasts.
Hudson's Bay, the oldest continuously operating company in North America, on Monday forecast 2016 sales of C$14.4 billion-C$14.6 billion ($10.90 billion-$11.05 billion), compared with its reduced guidance of C$14.5 billion-C$14.9 billion in November.
"While we were pleased with our performance at Hudson's Bay in Canada, the retail environment has remained challenging in the U.S. and Europe and the significant promotional activity during the holiday period had a negative impact on our margins," Chief Executive Jerry Storch said in a statement.
(Reporting by Vishaka George in Bengaluru; Editing by Maju Samuel)
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