Hudson’s Bay grows online sales 30% in Q2
September 11, 2015 12:08 PM
Online sales continued to surge for apparel chain Hudson’s Bay Co. in the second quarter of fiscal 2015 as the company turned its focus toward the holiday shopping season.
Hudson’s Bay, No. 97 in the Internet Retailer 2015 Top 500 Guide, reported online sales grew 30% during the quarter compared with the same period last year. Overall sales, which include e-commerce, came in at C$2.038 billion (US$1.539 billion), up 15.2% from C$1.769 billion (US$1.336 billion) during the same time last year. The company does not break out web sales in dollars.
Hudson’s Bay, a Toronto-based chain that also owns Saks and Lord & Taylor, has already scored one major win on the technology side in the second half of fiscal 2015—in the courts. Last month, the retail chain won a legal battle to hire new chief information officer Janet Schalk away from Kohl’s Corp., No. 22 in the Top 500.
Chief financial officer Paul Beesley told analysts on the retailer’s Q2 2015 earnings call that growth reflects the company’s continued investments in improving its online offerings.
“As you look in this year, most of the improvement that we expect and the growth in digital is simply coming from increased scrutiny and focus on that area of the business,” he said, according to a transcript from Seeking Alpha.
With the holiday shopping season about to get into full swing, Beesley told analysts the retailer’s focus is on making sure it is ready for an even greater surge in business online.
“We are paying a lot of attention to making sure that we are in-stock on the inventory that we need, that we'll be in a fantastic position for the holiday to deliver,” he said. “The number one variable is going to be being in-stock on the key products online for the holidays, and that's we are focused on.”
For the second quarter ended Aug. 1, Hudson’s Bay reported:
- Net earnings of C$67 million (US$50.6 million) compared to a net loss of C$36 million (US$27.2 million) during the same time last year.
- Same-store sales growth of 14.3% year-over-year.
For the first half of fiscal 2015, Hudson’s Bay reported:
- Retail sales including e-commerce of C$4.110 billion (US$3.104 billion), up 13.4% from C$3.624 billion (US$2.737 billion) during the same time last year.
- Net earnings of C$13 million (US$9.8 million) compared to a C$140 million (US$105.7 million) loss during the same time last year.
- Same-store sales growth of 12.9% year over year.