Apr 7, 2015
full-year sales forecast beats estimates Hudson's Bay
Apr 7, 2015
Department store operator Hudson's Bay Co forecast better-than-expected sales for the year, as the company benefits from higher demand in its U.S.-based Saks chain and a strong dollar.
The company forecast sales of C$9 billion to C$9.3 billion for its fiscal year 2015, higher than analysts' average estimate of C$8.17 billion ($6.55 billion), according to Thomson Reuters I/B/E/S.
Comparable-store sales rose 2.3 percent during the fourth quarter in its department store group, which includes the Hudson's Bay chain in Canada and its U.S.-based Lord & Taylor chain.
Same-store sales at Saks Fifth Avenue rose 2.6 percent, while they climbed 12.1 percent at OFF 5th, Saks' outlet business.
Sales at the company's online business rose 35 percent to C$304 million.
Hudson's Bay said its forecast assumes that the dollar would be stronger in 2015 than last year.
The company's fourth-quarter results were also helped by the strong dollar, which appreciated 12.1 percent against the Canadian dollar during the period.
Earlier this year, Hudson's Bay said it was forming two real estate joint ventures with U.S.-based Simon Property Group Inc and Canada-based RioCan Real Estate Investment Trust , in a deal that would cut the retailer's debt by roughly C$1.1 billion and pave the way for an initial public offering, or alternate transaction.
Hudson's Bay said net profit from continuing operations rose to C$111 million, or 61 Canadian cents per share, in the quarter ended Jan. 31 from C$37 million, or 21 Canadian cents per share, a year earlier.
Sales rose 9.3 percent to C$2.63 billion.
CA$1 = US$0.80/£0.54
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