Hudson’s Bay grows by more than 60% online in Q4
April 5, 2016 03:41 PM
Department store chain Hudson’s Bay Co. grew its online sales by nearly 50% in 2015 and expects that growth to continue in light of its acquisition of web-only flash-sale apparel retailer Gilt Groupe Inc.
Hudson’s Bay, which also owns Saks and Lord & Taylor and is No. 97 in the Internet Retailer 2015 Top 500 Guide, in its fiscal Q4 2015 earnings report said online sales grew 48.5% year over year in 2015. The spike was even sharper during the fourth quarter ending Jan. 30, with Hudson’s Bay reporting year-over-year online sales growth of 61.6%.
Those sales gains don’t include revenue generated by its acquisition of Gilt Groupe (No. 68 in the Top 500), which ceased operations as an independent business Feb. 1.
“Our all-channel model is further enhanced with the Feb. 1 acquisition of Gilt, and we are working on integrating its industry-leading mobile and personalization capabilities across our banners,” CEO Jerry Storch said.
In its earnings report, Hudson’s Bay says it plans to invest C$750-$850 million (US$569.8 million -$645.8 million) in the business in 2016, of which 30% (C$225-$255 million, or US$170.9 million-$193.7 million) is earmarked for digital and technology upgrades, including a new U.S. e-commerce distribution center.
Last year, Hudson’s Bay hired two technology executives away from Top 40 retailers, naming Janet Schalk from Kohl’s Corp. (No. 22) as chief information officer in August and Dion Rooney from Toys ‘R’ Us Inc. (No. 40) as executive vice president of HBC Digital in September.
For the fiscal fourth quarter ended Jan. 30, Hudson’s Bay reported:
- Sales, including online sales, of C$4.486 billion ($3.410 billion), up 70.4% from C$2.632 billion ($2.000 billion) in the year-ago quarter. Hudson’s Bay attributes this sharp sales growth in part to sales from German retail giant Galeria Kaufhof, which it acquired Sept. 30 from Germany-based electronics chain Media-Saturn Group (No. 23 in the 2015 Europe 500) for C$3.8 billion ($2.89 billion).
- Net earnings of C$370 million ($281.311.162 million), up 221.7% from C$115 million ($87.4 million).
For fiscal 2015, Hudson’s Bay reported:
- Sales of C$11.162 billion ($8.4858.169 billion), up 36.6% from C$8.169 billion ($6.209 billion) in fiscal 2014.
- Net earnings of C$387 million ($294.2 million), up 66.1% from C$233 million ($177.1 million).