Off-price a winner for Hudson's Bay Company

Saks Off 5th helped its parent, Hudson’s Bay Co., increase same store sales in the first quarter, although the company did report a larger loss.

HBC reported that for the first quarter ended May 2, same store sales increased 2.7%. The company posted a loss of $44 million, compared with a profit of C$176 million, or 97 Canadian cents, a year earlier. Adjusted to exclude restructuring and other items, the loss was C$33 million, up from a comparable C$27 million loss a year earlier. Sales rose 11.7 percent to C$2.07 billion.

“We are pleased with our first quarter financial performance and operating results, which were in line with our expectations,” said Richard Baker, HBC’s governor and executive chairman. “Top line sales growth, led by DSG, OFF 5TH and the performance of HBC Digital, has us well-positioned to deliver on our 2015 strategic priorities and initiatives.”

The company, founded in 1670, said same store sales at Saks rose only 0.6%, while those at OFF 5th outlets were up 10.3%. Overall online sales jumped 37.2 percent.

Jerry Storch, HBC’s CEO, added: “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. 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.”