Canada's Hudson's Bay posts lower quarterly sales
TORONTO (Reuters) - Canadian department store operator Hudson's Bay Co HBC.TO on Thursday reported lower sales in the fourth quarter, hurt by weaker results at its European, Saks OFF 5th and Gilt operations.
The owner of luxury retail chain Saks Fifth Avenue said its consolidated comparable sales fell 1.2 percent on a constant currency basis during the fourth quarter ended Jan. 28.
Sales fell 5.9 percent at Saks OFF 5th, which sells designer brands at a discount, and its online shopping website, Gilt. In Europe, where HBC operates Galeria Kaufhof, Galeria INNO and Sportarena, sales decreased 2 percent.
Sales rose 0.6 percent at its department store banners, which include Hudson's Bay and Lord & Taylor, and 0.1 percent at Saks Fifth Avenue.
The Toronto-based company said annualized savings from an operations review are expected to be around C$75 million ($57.23 million), with most of the savings expected this year. The department store operator also said it expects one-time severance charges of close to C$30 million.
Last month, Hudson's Bay stock tumbled more than 20 percent to a record low after it cut its full-year revenue forecast for the second time, citing a challenging retail environment in the United States and Europe. Competitors including Macy's Inc (M.N: Quote) and Kohl's Corp (KSS.N: Quote) had also reported disappointing performances.
The stock has since climbed nearly 40 percent, closing at C$12.59 on the Toronto Stock Exchange on Thursday.
Earlier this month, sources said the retailer had made a takeover approach for Macy's, which has been struggling in its efforts to overhaul operations.
(Reporting by Solarina Ho; Editing by Dan Grebler and Matthew Lewis)
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