In what Hudson’s Bay characterized as a difficult first quarter, the retailer reported that its consolidated comparable sales slipped 2.9%.
On a division basis, according to the company, comps from Hudson’s Bay, Lord & Taylor and Home Outfitters, decreased 2.4%. Saks Fifth Avenue comps decreased 4.8%. HBC off price, including results from Saks Off 5th and Gilt, decreased 6.8%. HBC Europe, including results from Galeria Kaufhof, Galeria Inno and Sportarena, were flat.
Comparable digital sales increased of 5.4%. With Gilt excluded, comps gained 13.2%. With the impact of foreign exchange included, consolidated comparable sales decreased 3.8%.
Jerry Storch, Hudson’s Bay CEO, said, “The first quarter of the year has remained difficult, particularly in the U.S., where we have seen lower store traffic across our banners. Compared to the fourth quarter of fiscal 2016, constant currency comparable sales trended lower at our North American banners, while improving at our European banners. Apparel retail has been further impacted by a highly promotional environment, and the continued channel shift of in-store sales to online sales. These and other factors will negatively impact our first quarter earnings. While the start of the year has been disappointing, we are reacting quickly so that we can better face these challenges going forward. We continue to work diligently on our ongoing operational review, through which we expect to increase synergies across our portfolio of businesses, sharpen capabilities that give us a competitive edge and re-align our expenses to focus on better serving our customers.”
