HUDSON’S BAY LOWERS FISCAL 2016 GUIDANCE AFTER COMPARABLE SALES DECLINE
Hudson’s Bay Company has lowered its fiscal 2016 guidance after reporting disappointing comparable sales results for the third quarter ended October 29, 2016.
Every division of the Canadian-based, international retailer showed lower third quarter comparable sales. On a constant currency basis, consolidated comparable sales had a decrease of 3.6 percent following last year’s increase of 2 percent. Saks Fifth Avenue, declined 4.6 percent; the HBC Off Price division (including Saks OFF 5th and Gilt) decreased 8.4 percent; and HBC Europe decreased 2.2 percent.
As a result, the company has decided to revise its sales, adjusted EBITDAR and adjusted EBITDA outlooks for Fiscal 2016. In Canadian dollars, the company now predicts sales in the $14.5 to $14.9 million; adjusted EBITDAR of $1.44 million to $1.525 million, and adjusted EBITDA of $700 to $785 million.
“The apparel retail environment continued to be challenging through the third quarter,” said Jerry Storch, HBC’s CEO. “We remain optimistic about this year’s upcoming extended holiday season following last year’s tough fourth quarter which was impacted by warm weather, and are focused on executing our all channel strategy for long term growth and increased profitability..We believe that HBC is well positioned heading into the holiday season and we are excited about the offerings we have for our customers across all our banners and geographies.”
The retailer will release its full third quarter financial statements on December 5.