November 10, 2016 / 11:22 PM / in a year

Retailer Hudson's Bay cuts full-year revenue forecast

(Reuters) - Canadian retailer Hudson’s Bay Co (HBC.TO), owner of U.S. luxury retail chain Saks Fifth Avenue, cut its revenue forecast for the full year, saying comparable sales did not improve in the second half as expected.

A woman holds a Hudson's Bay shopping bag in front of the Hudson's Bay Company (HBC) flagship department store in Toronto January 27, 2014. REUTERS/Mark Blinch

The oldest continuously operating company in North America said on Thursday it expected sales of $14.5 billion-$14.9 billion, down from the $14.9 billion-$15.9 billion it estimated in September.

The latest forecast assumes flat to low-single digit overall comparable sales growth, the company said.

“The apparel retail environment continued to be challenging through the third quarter,” Chief Executive Jerry Storch said.

The company said, on a constant currency basis, consolidated comparable sales fell 3.6 percent in the third quarter ended Oct. 29, compared with a 2 percent rise a year earlier.

However, Storch said he remained optimistic about the upcoming extended holiday season following last year’s tough fourth quarter, which was impacted by warm weather.

The company, which has been expanding in Europe, also lowered its capital expenditure forecast for the year to $700 million-$750 million, from $750 million-$850 million.

Hudson’s Bay is scheduled to announce third-quarter results on Dec. 5.

Reporting by Arathy S Nair in Bengaluru

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