National Jeweler Network

Financial Reporting

Q3 comps up 6 percent for Saks’ new parent co.

December 12, 2013

New York--Hudson’s Bay Company, the Canadian retailer that acquired Saks Inc., reported a single-digit increase in both same-store and total sales in the third quarter.

The Toronto-based company reported Wednesday that same-store sales were up 6 percent year-over-year (4 percent on a constant currency basis) in the quarter ended Nov. 2.

This includes a 6 percent increase in comp sales at Hudson’s Bay stores in Canada and a 2 percent increase (on a U.S. dollar basis) at U.S. chain Lord & Taylor, its first quarterly comp increase since the third quarter of last year. 

Total sales increased 6 percent year-over-year, rising from $930.4 million to $984.1 million. E-commerce sales grew 58 percent to $48.9 million.

During the quarter, Hudson’s Bay Company opened a Lord & Taylor store in Boca Raton, Fla. and five new Topshop/Topman stores across Canada while renovating six more in North America.

The company completed its $2.9 billion acquisition of Saks Inc. on Nov. 4, two days into the fiscal fourth quarter. The retailers announced their merger in July. In September, Saks announced that Chairman and CEO Steve Sadove and President Ronald Frasch would be leaving the company following the merger.

Richard Baker, Hudson’s Bay Company governor and CEO, said while they would have preferred stronger year-to-date results, investment in store productivity and the omni-channel platform have produced “clear and promising” results. He said the addition of Saks will allow the company to leverage these investments over a larger platform.

He said as 2014 approaches, Hudson’s Bay Company is focused on the integration of Saks, which includes Saks Fifth Avenue and Off Fifth stores and Saks.com. With the addition of these operations, Hudson’s Bay Company operates a total of 320 stores in the United States and Canada and three e-commerce sites.

“This is a transformational period in HBC’s history and the addition of one of the world’s most recognized luxury retailers provides us with the ability to offer our customers an impressive range of shopping experiences,” Baker said.