HBC Reports Mixed Fourth Quarter Results Across Divisions

Hudson’s Bay Co., hurt by a restructuring charge, posted a fourth quarter net loss off operations of 226 million Canadian dollars, or U.S. $170 million, but showed continued strength at the Saks Fifth Avenue division. That compares to net earnings of 180 million Canadian dollars in the same quarter a year ago. All subsequent figures are in Canadian dollars. 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 impact in the fourth quarter of 2017 as a result of U.S. tax reform. Fourth quarter revenue was $2.9 billion, a decrease of $167 million from the same quarter a year ago. In 2017, the company’s results included a 53rd week, which generated $120 million of revenue. Excluding the extra week, fourth quarter revenue declined $47 million or 1.6 percent in 2018. Saks’ fourth quarter comparable sales grew 3.9 percent, marking its seventh consecutive quarter of comparable sales growth despite being hampered by construction on the main floor during the holiday season at the New York flagship. However, the department store group, which includes Hudson’s Bay, Lord & Taylor and Home Outfitters, saw a 5.2 percent decline in

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