HUDSON’S BAY COMPANY REVENUE JUMPS 59 PERCENT IN FIRST QUARTER

International retail giant Hudson’s Bay Company reported its financial results for the 13-week period ended April 30, 2016. The company’s many holdings include Saks Fifth Avenue, Saks Off 5th, Lord & Taylor, Gilt, and Galeria Kaufhof.

Adjusted EBITDAR was $251 million, an increase of 44.1 percent compared to $174 million in the prior year, primarily as a result of the addition of HBC Europe. Consolidated retail sales were $3.3 billion, an increase of 59.4 percent from the prior year, primarily as a result of the addition of HBC Europe and Gilt. HBC also posted an increase in comparable sales of 4.4 percent. Total digital sales increased by 86.2 percent from the prior year, with comparable digital sales increasing by 7.4 percent on a constant currency basis.

“With banners across multiple geographies and consumer segments, we believe HBC’s diversified retail platform positions us well for future sales and earnings growth in all of our businesses,” stated Richard Baker, HBC’s governor and executive chairman. “In the first quarter we continued to generate sales growth as a result of the Galeria and Gilt acquisitions and experienced continued strength at our Canadian operations.”

In addition, the company confirmed its previous fiscal 2016 year guidance. Commented Jerry Storch, HBC’s CEO: “In the face of a challenging retail environment we continue to execute our strategy and are excited about growth prospects for our businesses. As we look toward the rest of the fiscal year, we expect that our ongoing efforts to become more efficient, in conjunction with our all-channel strategy of combining exciting retail destinations with a best in class e-commerce platform, will drive both sales and earnings growth.”