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EARNINGS-Hudson's Bay posts wider-than-expected loss on fewer stores, lower sales at Lord & Taylor

Credit: REUTERS/SHANNON STAPLETON

Canadian department store operator Hudson's Bay Co on Thursday posted a wider-than-expected loss and a 3.3% fall in first-quarter revenue as it closed some stores and sales at its Lord & Taylor unit fell.

Compares with estimates, adds same store sales, Q1 net income

The company, North America's oldest, said first-quarter comparable sales decreased 2.1%, and excluding Lord & Taylor and Home Outfitters increased 0.3%.

Same-store sales at its namesake stores tumbled 4.3% in the quarter.

The struggling retailer has been shutting its underperforming shops to cut costs and exploring strategic alternatives such as a sale or merger of its department store Lord & Taylor. The company is also set to sell its stake in its real estate joint venture in Germany to Signa Retail Holdings in a deal valued at C$1.5 billion.

The company reported a profit of C$275 million ($206.80 million), or C$1.15 per share from continuing operations, in the first quarter ended May 4, compared to a loss of C$398 million, or 72 Canadian cents per share, a year earlier.

First quarter net income included a C$817 million gain from the sale of the Lord & Taylor flagship building in New York.

Excluding items, the company posted a loss of 87 Canadian cents per share, wider than the 56 Canadian cents loss based on estimates from 2 analysts, according to IBES data from Refinitiv.

Total revenue fell to C$2.12 billion from C$2.19 billion, a year earlier.

($1 = 1.3302 Canadian dollars)

(Reporting by Shanti S Nair in Bengaluru; Editing by Shailesh Kuber)

((ShantiS.Nair@thomsonreuters.com; +1 646 223 8780 Ext: 9897; Reuters Messaging: shantis.nair.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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