Hudson’s Bay has a C$900 million ($722 million) year online
April 8, 2015 12:48 PM
Canadian retail chain Hudson’s Bay Co. boosted sales online and offline during its fiscal year and fourth quarter, thanks in part to the addition of Saks Fifth Avenue assets, the retailer announced yesterday.
Hudson’s Bay acquired high-end department store Saks Fifth Avenue in November 2013.
For the fiscal year ended Feb. 1, Hudson’s Bay reported:
- C$900 million ($722 million) in e-commerce sales, which includes $651 million ($522 million) from Saks’ online properties, and a 66% increase in its department store group, composed of Lord & Taylor and Hudson’s Bay web stores. The retailer did not disclose comparable dollar amounts for last year’s digital sales.
- Total sales were C$8.169 billion ($6.56 billion), up 56.4% from C$5.223 billion ($4.19 billion) in the previous year. Hudson’s Bay attributes most of the growth to the inclusion of Saks’ revenue.
- Companywide, comparable-store sales increased 2.7%, with increases of 1.5% at the retailer’s department store group, 2.1% at Saks Fifth Avenue stores and 15.1% at Off 5th, the retailer’s outlet arm.
- Net earnings were C$238 million ($191 million), compared with a net loss of C$259 million ($208 million) last year.
Hudson’s Bay plans to invest C$50 million ($40 million) in strategic growth initiatives in the coming year, including strengthening its digital presence, though it did not provide specifics.
In the fall, the retailer predicted it would reach C$10 billion ($8 billion) in total sales by 2018, with its digital channels driving much of the growth, as e-commerce will grow three times as fast as stores in the next few years. More than 70% of its transactions are influenced by a digital experience, and customers who shop online and in stores spend three or four times as much as shoppers who frequent only one channel, Hudson’s Bay says.
“With great teams in place and building off the momentum established in 2014, we believe there are tremendous opportunities to drive growth across our retail banners, including strengthening the connection between our store and digital businesses, expanding our off-price business and investing in our world-class store base,” says CEO Jerry Storch.
For the fourth quarter, Hudson’s Bay also reported:
- E-commerce sales of C$304 million ($244 million), a 35.1% increase compared with C$225 million ($181 million) in the fourth quarter of 2013.
- Total sales of C$2.632 billion ($2.11 billion), a 9.3% increase over C$2.407 billion ($1.93 billion).
- Comparable-store sales companywide increased 3.2%, with 2.3% at Lord & Taylor and Hudson’s Bay Stores, 2.6% at Saks Fifth Avenue locations, and 12.1% at Off 5th outlet stores.
- Net earnings were C$111 million ($89 million) compared with C$29 million ($23 million) last year.
Hudson’s Bay is No. 130 in the Internet Retailer 2014 Top 500 Guide.