Real estate JV deals help Hudson's Bay post profit
(Reuters) - Hudson's Bay Co (HBC.TO: Quote) swung to a profit in the second quarter as the owner of Saks luxury chain benefited from the formation of real estate joint ventures earlier this year.
The company has contributed real estate assets to two joint ventures formed with U.S.-based Simon Property Group Inc (SPG.N: Quote) and Canada's RioCan Real Estate Investment Trust (REI_u.TO: Quote) earlier this year, helping it focus on its store operations.
Hudson's Bay said it recorded a gain of C$133 million ($100.40 million) from the two joint venture deals closed during the quarter.
Shares in the Canadian-U.S. department store were trading up 4 percent at C$23.66 in early morning trading on the Toronto Stock Exchange.
The company's revenue rose more than 15 percent to C$2.04 billion for the quarter, driven by strong online business and higher sales at its Saks OFF 5TH stores.
Hudson's Bay, which has also been opening more Saks OFF 5TH stores in the United States, said sales at both its department stores and Saks were driven by menswear and home products.
Hudson's Bay, which had gained from Target Corp's (TGT.N: Quote) exit from Canada in the first quarter, said on Thursday that total same-store sales rose 4.2 percent in the second quarter.
Overall online sales jumped 30 percent in the quarter ended Aug. 1, the company said.
Same-store sales at Saks OFF 5TH rose 12.7 percent, while same-store sales at its luxury chain, Saks Fifth Avenue, rose only 0.1 percent. Continued...