#stayhome Maintain the distance, wash your hands, and follow instructions from the health authorities.
RSS   Newsletter   Contact   Advertise with us

Hudson's Bay gross profit $395.9 million

Share on Twitter Share on LinkedIn
Staff writer ▼ | December 12, 2013
Hudson's Bay Company reported its results for the third quarter ended November 2, 2013. Retail sales were $984.1 million for the 13-week period ended November 2, 2013, an increase of $53.7 million, or 5.8%, from $930.4 million for the 13-week period ended October 27, 2012.
Hudson's Bay Company
Hudson's Bay CompanyHudson's Bay Company reported its results for the third quarter ended November 2, 2013. Retail sales were $984.1 million for the 13-week period ended November 2, 2013, an increase of $53.7 million, or 5.8%, from $930.4 million for the 13-week period ended October 27, 2012.


Consolidated same store sales increased by 5.7% (3.8% on a constant currency basis), with an increase of 6.4% at Hudson's Bay and an increase of 1.6% on a U.S. dollar basis at Lord & Taylor.

Sales at Hudson's Bay were driven by strong performance of ladies' and men's apparel, ladies' shoes, handbags and accessories, as well as Topshop/Topman stores. Sales growth was particularly evident at those stores and store areas that have received recent renovations. For example, at the Vancouver flagship store that received a major renovation in Fiscal 2012, sales were up over 30%.

Sales at Lord & Taylor were driven by relative strength in men's apparel and shoes and improved performance in ladies' apparel and handbags. E-commerce sales grew to $48.9 million, an increase of 58.3% compared to the third quarter of Fiscal 2012, reflecting the Company's strategic focus on growing this channel.

Gross profit was $395.9 million, or 40.2% of retail sales, for the 13-week period ended November 2, 2013, compared to $362.7 million, or 39.0% of retail sales, for the 13-week period ended October 27, 2012.

Gross profit in the quarter ended October 27, 2012 was impacted by a $9.3 million charge from higher than expected book-to-physical inventory adjustments. As a result, the Company implemented inventory control processes and corrective actions to ensure this would not be an ongoing issue.

SG&A was $389.2 million, or 39.5% of retail sales, for the 13-week period ended November 2, 2013 compared to $358.3 million, or 38.5% of retail sales, for the 13-week period ended October 27, 2012. Adjusting for non-recurring expenses, SG&A as a percentage of retail sales would have been 37.8% and 37.4%, respectively.

The dollar increase in SG&A was driven by four factors: an increase in costs associated with strategic initiatives (including omni-channel and Topshop/Topman), increased depreciation and amortization costs related to capital investments (including investments in omni-channel), an increase in non-cash share based compensation, and a decreased return from credit operations.

These factors were partially offset by approximately $10.6 million of expense reductions related to rightsizing corporate infrastructure to reflect the wind-down of discontinued operations.

Normalized EBITDA was $64.3 million, or 6.5% of retail sales, in the 13-week period ended November 2, 2013 compared to $47.9 million, or 5.1% of retail sales, in the 13-week period ended October 27, 2012.

Finance costs were $134.2 million for the 13-week period ended November 2, 2013 compared to $31.7 million for the 13-week period ended October 27, 2012, an increase of $102.5 million. This increase was primarily driven by $123.4 million of Acquisition-related financing costs, of which $111.7 million were non-cash.


 

MORE INSIDE POST