UPDATE 2-Hudson's Bay revenue beats after Europe expansion, online push

Thu Jun 9, 2016 6:15pm EDT
 
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(Adds details on restructuring program, analysts' comments)

June 9 (Reuters) - Canadian retailer Hudson's Bay Co reported better-than expected quarterly sales as it benefited from its expansion in Europe and the acquisition of online retailer Gilt.

Hudson's Bay bought Galeria Kaufhof and its Belgian subsidiary Inno from German retailer Metro for about $2.7 billion last year to mitigate the impact of decreased consumer spending in the United States and Canada.

The oldest continuously operating company in North America received a third of its revenue from Europe in the first quarter.

However, the company reported a bigger-than-expected loss for the quarter ended April 30, hurt by higher costs and rent expenses related to the company's real estate joint ventures.

"I think the stock might come off a little bit but the overall tone is positive," M Partners analyst Steven Salz said.

Same-store sales at the company's department store group, which includes Hudson's Bay and Lord & Taylor chains, rose 2.3 percent. Total same-store sales rose 4.4 percent.

Same-store sales at its upscale Saks Fifth Avenue fell 5.7 percent as consumers continued to shun luxury items.

Total sales rose 59.4 percent to C$3.30 billion ($2.6 billion). Analysts on average had expected revenue of C$3.28 billion, according to Thomson Reuters I/B/E/S.   Continued...