The Net Loss Of Hudson Bay Group Was 97 Million Canadian Dollars In The First Quarter Of April.

Hudson 'sBayCo. Hudson Bay Group

Department store SaksFifthAvenue

Canada

Operators' Hudson 'sBayCo. Hudson Bay group benefited from recent M & A in the recent quarter.

Expected revenue, however, widened year by year.

In the first quarter of April 30th, the net loss of Hudson 'sBayCo. Hudson Bay Group doubled to $97 million from $47 million in the same period last year, and the diluted share loss rose from $0.27 to $0.53.

Excluding adjusted expenditure and other items, the adjusted diluted share loss was $0.50, far less than the market expected $0.36.

During the period, the group began to voluntarily reorganize the European business including the German GaleriaKaufhof department store and the Belgian Inno department store, and outsourced the maintenance of IT system in North America to reduce the annual expenditure of $16 million. The group did not disclose the number of Posts affected by this policy.

The above measures cost about $21 million, of which $12 million is recorded in the first quarter.

In addition, the rental of the new real estate joint venture HBSGlobalProperties has a greater pressure on earnings.

Therefore, the group thinks that the profit before the EBITDAR interest rate depreciation and amortization is the best way to reflect its operation.

In the first quarter, the index increased by 44.1% to 251 million yuan a year, compared with 174 million yuan in the same period last year.

The negative impact of the real estate joint venture on adjusted EBITDA amounts to 61 million Canadian dollars. The group points out that with the increase of income in the peak season of sales in the second half of this year, the impact of rents will weaken.

Over the past year, the European Union and the US flash buying GiltGroupInc. have pushed the Hudson 'sBayCo. Hudson Bay Group's quarterly revenue up 59.4% to 3 billion 303 million Canadian dollars, which is better than the market expectations of $3 billion 280 million.

Sales in the same store grew by 4.4%, but after the exchange rate was dropped, a 1% decline was recorded, mainly because SaksFifthAvenue and discount department HBCOffPrice's same store sales fell by 5.7% and 4.1% respectively.

According to the observation of us department stores, the weakness of luxury department store SaksFifthAvenue is expected, but the performance of HBCOffPrice is a big surprise.

Hudson 'sBayCo. Hudson Bay Group points out that the SaksOff5th reduction pricing strategy under the discount department reduces the discount rate, which directly weakens the consumer's willingness to consume. This performance confirms the increasing trend of consumers' demand for costumes and other nonessentials.

However, reducing the discount will help to improve profitability. In the first quarter, the gross profit margin of the group increased by 70 basis points to 41.9%.

Although the Macy 'sInc. department store and Messi NordstromInc.'s North American counterparts have lowered their annual earnings forecasts due to sluggish sales, Hudson' sBayCo. Hudson Bay Group still maintains revenue and profit targets.

Following last year's acquisition of Germany's GaleriaKaufhof department store for the first time in Europe after spending 2 billion 825 million euros, the Hudson 'sBayCo. Hudson Bay Group announced last month that it will deepen its expansion in Europe and open 20 Hudson' sBay Hudson Bay Department Stores (17) and SaksOff5th discount department stores (3) in Holland in the next two years. The first one will be Hudson 'sBay Hudson Bay department store located in Amsterdam, and is expected to open in summer 2017.

The investment budget for Holland expansion is 300 million euros, which will create 2500 store posts and 2500 construction jobs.

Group Executive Chairman RichardBaker said in the announcement that stepping into Holland is a natural extension of the existing Belgian business, plus Belgium's Inno department's entry into Luxemburg's plan, when the group will be able to complete its layout in the entire Benelux region.

Hudson 'sBayCo. Hudson Bay Group's aggressive takeover and expansion plan resulted in high cost and caused market concern.

However, chief executive JerryStorch believes that the penetration and wide geographical layout of different consumer sectors is the advantage of the group. He points out that the group has strong performance in Canada and Europe, and SaksOff5th can also generate better profits. Only luxury stores in the United States are under constant pressure.

At the time of the deadline, Hudson 'sBayCo.10 fell 2.41% to 14.993 Canadian dollars in the early days of the day.

The stock has fallen by 16.02% since 2016.