Company News

Hudson's Bay stock falls sharply ahead of results

TORONTO, Sept 5 (Reuters) - Hudson’s Bay Co shares fell as much as 7.2 percent by Tuesday, on track for their biggest one-day decline since June, amid concerns that quarterly results could be worse than expected, traders said.

Analysts are expecting a loss of C$116.1 million ($93.7 million), or 60 Canadian cents per share, on sales of C$3.26 billion, according to Thomson Reuters I/B/E/S.

The company declined to comment.

The retailer, which did not pre-release comparable-store sales last month unlike previous quarters, is scheduled to release second-quarter results after markets close on Tuesday.

Hudson’s Bay shares, which tumbled amid a broader market sell-off, fell as low C$11.22 in Toronto, down 7.2 percent. It was HBC’s sharpest retreat since June 9 when shares plunged more than 10 percent after the company reported a steeper-than-expected loss and announced a restructuring plan that included laying off 2,000 employees.

The shares later pared losses to trade at C$11.44.

Investors and analysts said Tuesday’s decline was likely due to positioning ahead of the results, which come on the same day the company opened the first of 10 new stores in the Netherlands.

Shares of other North American department store operators also fell on Tuesday. Sears Holdings Corp was down 5.0 percent, and Macy’s Inc was down 2.5 percent.

$1 = 1.2394 Canadian dollars Reporting by Solarina Ho; Editing by Leslie Adler