Despite Declines, a Streamlining HBC Sees Better Future

The Hudson’s Bay Co., after months of streamlining, real estate deals and debt reduction, is “a much stronger and more capable company than a year ago,” says its  chief executive officer Helena Foulkes. “Financial discipline is not a one-year event. It takes time, but the really good thing is that we have been taking costs out, taking inventory down and also making strategic investments for growth,” Foulkes told WWD during an interview Wednesday after the company reported its fourth-quarter and year-end results. According to Foulkes, despite some slippage in sales and profitability, HBC is now a company with a better foundation, balance sheet and opportunities for growth in certain divisions. For the quarter ended Feb. 2, HBC had a net loss from continuing operations of 226 million Canadian dollars, or $170 million, compared to net earnings of 180 million Canadian dollars, or $135 million, in the same quarter a year ago. All subsequent figures are in Canadian dollars. On adjusted EBITDA basis, the company had $187 million in earnings versus $216 million in earnings in the year-ago period. HBC cited a $194 million restructuring charge, which unfavorably impacted contributions from the company’s European retail joint venture, and lower income tax benefits after a favorable $181 million

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