(Adds sales results, financial details, company background and
TORONTO Feb 23 Canadian department store
operator Hudson's Bay Co on Thursday reported lower
sales in the fourth quarter, hurt by weaker results at its
European, Saks OFF 5th and Gilt operations.
The owner of luxury retail chain Saks Fifth Avenue said its
consolidated comparable sales fell 1.2 percent on a constant
currency basis during the fourth quarter ended Jan. 28.
Sales fell 5.9 percent at Saks OFF 5th, which sells designer
brands at a discount, and its online shopping website, Gilt. In
Europe, where HBC operates Galeria Kaufhof, Galeria INNO and
Sportarena, sales decreased 2 percent.
Sales rose 0.6 percent at its department store banners,
which include Hudson's Bay and Lord & Taylor, and 0.1 percent at
Saks Fifth Avenue.
The Toronto-based company said annualized savings from an
operations review are expected to be around C$75 million ($57.23
million), with most of the savings expected this year. The
department store operator also said it expects one-time
severance charges of close to C$30 million.
Last month, Hudson's Bay stock tumbled more than 20 percent
to a record low after it cut its full-year revenue forecast for
the second time, citing a challenging retail environment in the
United States and Europe. Competitors including Macy's Inc
and Kohl's Corp had also reported disappointing
The stock has since climbed nearly 40 percent, closing at
C$12.59 on the Toronto Stock Exchange on Thursday.
Earlier this month, sources said the retailer had made a
takeover approach for Macy's, which has been struggling in its
efforts to overhaul operations.
($1 = 1.3105 Canadian dollars)
(Reporting by Solarina Ho; Editing by Dan Grebler and Matthew