Hudson’s Bay Co. sees stronger Q1 sales, shrinks loss

Department store chain Hudson’s Bay Co. saw a reduced net loss and encouraging Canadian sales results in its first quarter.

HBC, which operates Hudson’s Bay and Home Outfitters chains in Canada and Lord Taylor in the U.S., lost $14.3-million, or 12¢ per share in the period ended May 4, compared with a loss of $23.3-million, (22¢) in the same quarter of 2012.

Retail sales rose 4.2% to $884-million from $848.2-million.

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Same-store sales, a key measure of retail performance tallying performance at outlets open for more than a year, rose 7.6% at Hudson’s Bay stores, but declined 1.4% at Lord Taylor by 1.4%. Consolidated same-store sales grew 4%.

“Our strong sales growth can be attributed to several factors, including improvements in store productivity, increased e-commerce sales, and our partnership with Topshop/Topman,� said chief executive Richard Baker.

“These strategic initiatives drove gains at Hudson’s Bay, which continues to outperform its competitors.�

Online sales jumped 33% to $31.1-million.

The chain, which has cut costs, renovated stores and upgraded its brands and image under the stewardship of president Bonnie Brooks, had strong sales of women’s shoes, cosmetics, accessories, and men’s apparel, the company added. Lord Taylor sales lagged due to poor weather compared with last year, the company said.

HBC declared a 9¢ per share dividend for shareholders to be paid on July 15.

Article source: http://www.canada.com/Hudson+sees+stronger+sales+shrinks+loss/8514075/story.html