Hudson Bay Group's Poor Performance Decided To Lay Off Staff For Restructuring

According to the world clothing and shoe net, Canada Hudson 's Bay Co. (TSE:HBC), which operates many department stores in North America and Europe. hudson bay While announcing its first quarter results, the group said it would reorganize itself in response to changes in the retail era, including 2000 jobs.

As of the first quarter of April 29th, Hudson 's Bay Co. (hereinafter referred to as HBC) Hudson Bay Group's same store sales fell 2.9%, has dropped 5 quarters. The group disclosed plans for business assessment at the end of 2016. Group Executive Chairman Richard Baker pointed out in yesterday's earnings report that last season was difficult for HBC. clothing The retail market is still particularly challenging, so the group will take measures to adapt to the market transformation from this reform.

The layoffs are mainly concentrated in the North American market, accounting for 3% of the group's over 66 thousand employees, including the first round of layoffs in February this year, and 600 people were sacked on Thursday. A spokesman for HBC said that employees from top to bottom of Canadian business headquarters would be affected, but declined to provide specific details.

Other initiatives of the reform plan will focus on strengthening the digital business with growth opportunities and improving the efficiency of physical stores. The digital business within the group will be reintegrated, and the resources of IT and digital departments, store operations and visual merchandising, procurement and planning and marketing departments will be redistributed. brand Separately, the independent leadership team of Canada's Hudson 's Bay department and the Lord&Taylor department store in Canada will be established separately. The group has announced the selection of the new president of Hudson' s Bay Department yesterday - Alison Coville, which has been HBC service for the past 18 years, and the former president of the "Hudson" and "the" will be mainly responsible for the latter's business.

HBC expects to save $350 million a year through the reform plan to alleviate the "current income, profit margins and cost pressures". However, Canaccord Genuity analyst Derek Dley garment is in the current high intensity retail environment, can it achieve the goal of cost reduction without weakening sales. The whole plan will cost $95 million in the next 12 months.

In the current stage of the plan, HBC has not followed the department stores to reduce its Hudson 's Bay, Lord&Taylor, Saks Fifth Avenue, Saks Off 5th and other department store network. According to statistics, Macy 's Inc. (NYSE:M) Messi general store group, J.C.Penney Co.Inc. (NYSE:JCP) Penny department store and Sears Holdings Corp. (NASDAQ:SHLD) Sears department store will close more than 415 stores this year, and the founding member of Nodes Tron's department store, the main competitor of the main company, announced the privatization plan this week.

At the analysts' conference call after Thursday's earnings report, HBC CEO Jerry Storch said he could not comment on whether he would consider privatizing the group. He pointed out that it needed to be decided by shareholders.

　　 Hudson 's Bay Co. Hudson Bay group expands the concept of discount Saks Off 5th business in the European and American markets.

During the first quarter, Saks Fifth Avenue's same store sales plunged 4.8%, Saks Off 5TH and Gilt's discount department fell more than 6.8%, including Hudson 's Bay, Lord&Taylor and s' s department also dropped 2.4%, only the European business stabilized, and the same store sales of the company's shares were flat in the same period last year.

According to the channel, the comparable sales of e-commerce with fixed exchange rate increased by 5.4%, and the growth rate after Gilt business was 13.2%. HBC bought $250 million last year to buy Gilt Groupe, a once flashy flash buyer, but Jerry Storch said in April this year that there were more problems than expected, resulting in a longer time to integrate with the discount sector. What's more, the electricity supplier generated an impairment loss of 116 million yuan in the fourth quarter.

Retail sales in the first quarter fell by 3% to 3 billion 203 million yuan a year, less than the 3 billion 260 million Canadian dollar expected by the market. The net loss expanded from 97 million Canadian dollars in the same period last year to 221 million Canadian dollars, mainly due to gross margin decline, depreciation and amortization increased by 15 million yuan, financial expenditure increased by 12 million Canadian dollars and real estate joint venture generated a loss of 25 million Canadian dollars. The diluted share loss rose from $0.58 to $1.21 per share, and the adjusted diluted share loss was $1.19, much higher than the $0.69 expected by the market.

Even if the performance is poor, Jerry Storch stressed yesterday that the group will continue to push ahead with the established European and Saks Off 5th expansion plan. "We continue to be different from our competitors, and we are focused on growth."

Saks Off 5th has officially landed on the European market this Thursday and opened its first store in Dusseldorf, Germany. This summer, Rotterdam, Frankfurt, Stuttgart, Wiesbaden, Heidelberg and Holland will welcome the presence of Saks Off 5th. HBC believes that the discount retailing concept has the potential to deploy 40 stores in Europe in the next 3 years. Saks Off 5th 2016 first stepped out of the United States into Canada, and currently has 5 branches in the base of HBC. The Saks Fifth Avenue, which has also entered the Canadian market, plans to launch its largest flagship store in the autumn of 2018. At the same time, Hudson 's Bay department will also visit Europe later this year and set up shop in Holland.

As part of the restructuring, HBC is looking for candidates for chief financial officer and chief marketing officer.

Hudson 's Bay Co. (TSE:HBC) reported 9.62 Canadian dollars on Thursday, down 1.13% from the rest of the world, expanding the cumulative decline in 2017 to 27.1% so far.

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