HBC Q1 2019 Results
- Revenues totaled $2.1 billion, with comparable sales up 0.3%, excluding Home Outfitters and Lord + Taylor currently undergoing a review of strategic alternatives
- Digital sales increased 13.9%, excluding Lord & Taylor and Home Outfitters
- Saks Fifth Avenue comparable sales up 2.4%, continuing to deliver industry-leading results with a two-year stacked comp of 8.4%
- Saks OFF 5TH returned to growth, with a 4.4% comp in the first quarter
Hudson’s Bay Co. continues to invest dollars in digital, has an offer to go private, and is still in the process of shedding pieces of its operation, but will the efforts be enough to course-correct the struggling retailer?
A group of Hudson’s Bay Co. shareholders that includes chairman Richard Baker is stepping in with a cash bid valued at about $1.74 billion to take the company private. The company will also sell its remaining stake in its German real estate joint venture, a transaction totaled $1.5 billion, and completely exit its German operations.
It may also unload its Lord & Taylor division, which HBC said in May it was looking to sell. In 2018, HBC announced the closing of up to 10 Lord & Taylor stores and has completed five of those closings. The company will begin liquidation in four additional stores shortly, two of which are Lord & Taylor outlets and expects to complete the closing of all four in its third quarter. It also shut down its flagship this year.
For Saks OFF 5TH, the retailer estimated closing 20 locations in the U.S. and said it has now identified 15 stores that will be closing throughout 2019, with the vast majority to shut at the end of its Q3.
This follows the closing of its Home Outfitters chain in Canada, which has 37 locations, and the sale of Gilt.com.