HBC Q2 revenue $1.9 billionChristian Fernsby ▼ | September 12, 2019
HBC’s second quarter sales were driven by accelerated growth in digital, continued positive comp at Saks Fifth Avenue, sequential progress at Hudson’s Bay and the second consecutive quarter of increased comparable sales at Saks OFF 5TH.
HBC Gross margin declined year-over-year
Approximately two-thirds of the gross margin decrease was due to changes in store footprint, vendor relationships and merchandise, the impact of which is expected to lessen slightly during the second half of the year.
The remaining one-third was due to a hyper-promotional market environment.
Revenues totaled $1.9 billion, with comparable sales down 0.4% including a 19% year-over-year increase in digital sales.
Saks Fifth Avenue’s comparable sales up 7.3% on a two-year stacked basis, which includes 0.6% comp in the second quarter.
Saks OFF 5TH’s comp sales up 3.4% driven by new customer growth.
Continued inventory and expense discipline with comparable inventory down 5% year-over-year and a $34 million decrease in SG and A resulting in 170 basis points of SG and A leverage.
Net loss from continuing operations of $462 million, includes $150 million to write-down the value of deferred tax assets.
Adjusted EBITDA was $52 million in the second quarter. ■