Hudson’s Bay swings to Q1 loss, will open 12-15 stores in 2015

Toronto, Canada – Hudson’s Bay Co. Inc. (HBC) swung a net loss of $54 million in the first quarter of fiscal 2015 from net earnings of $176 million in the year-ago period amid higher selling, general and administrative (SG&A) expenses even as as sales showed strong improvement.



Buoyed by strong performance across the board at its Saks Off 5th discount banner, HBC reported net sales of $2.72 billion, up 12% from $1.85 billion. Consolidated same-store sales grew 2.7%, while digital commerce sales skyrocketed 37.2%.



HBC plans to open 12-14 Off 5th stores and one Saks store in fiscal 2015. During fiscal 2016, HBC intends to expand the Off 5th and Saks banners into Canada.



“We are energized by our progress and the opportunities ahead, and will continue to make the right investments to drive long-term sales growth and capitalize on margin enhancement opportunities,” said Jerry Storch, CEO of HBC. “This includes strengthening our digital capabilities, expanding Off 5th, bringing Saks Fifth Avenue and Off 5th to Canada and leveraging our scale to capture synergies and promote efficiencies across our business."



During the full fiscal year, HBC expects total sales of between $9 and $9.3 billion. This implies low-single-digit consolidated same-store sales growth.