Saks'S Parent Company HBC Retail Sales Fell 4% Year On Year

According to the world clothing shoes and hats net, the United States

Department store

The parent company Hudson 's Bay Co (hereinafter referred to as

Recently, the financial data for the third quarter were released, and the extent of losses has further expanded.

In the third quarter ending October 28th, the key financial data of HBC are as follows:

Retail sales of 3 billion 160 million Canadian dollars, down 4% compared with the same period last year, with a constant exchange rate, comparable sales fell 3.2%.

Adverse exchange rate fluctuations caused a negative impact on sales of $64 million.

The comparable store sales of its flagship Department Saks Fifth Avenue grew for the second consecutive quarter, but the increase was only 0.2%.

Gross profit margin was 41.6%, down 60 basis points.

Large scale discount sales and clearing activities are the main reasons for the decline in interest rates.

Adjusted EBITDA (profit before interest tax depreciation amortization) was 34 million Canadian dollars, down 38.2% from 55 million Canadian dollars in the same period last year.

Net loss of 243 million Canadian dollars, an increase of 94.4% over the same period last year of 125 million Canadian dollars, higher than analysts estimated 138 million Canadian dollars.

This quarter, HBC focused on improving cash flow through strategies such as strengthening inventory efficiency and reducing capital expenditure.

HBC said that according to the group's strategy, the cost of saving in the future will be around 350 million Canadian dollars.

In addition, the group opened 10 Hudson 's Bay department stores and a Saks Off Fifth department store in Holland this quarter.

Above: Saks's flagship store in New York.

During the quarter, HBC also sold its flagship Lord & Taylor Fifth Avenue flagship store at $850 million to the US office space magnate WeWork, and established a strategic partnership with the latter to lease the retail space in other parts of the department store to WeWork to maximize the use of all real estate in the group.

Department stores affected by the strategy include flagship stores located in Queen Street, Toronto.

(see "gorgeous" previously reported: sharing office space giant WeWork $850 million acquisition of the oldest luxury department store Lord &Taylor New York flagship store)

HBC's former CEO Gerald Storch quit, and Richard Baker took his place.

The latter said in the report: "we are making some necessary changes to enhance our overall performance in all aspects.

Our cooperation with WeWork will help us make better use of our real estate value and enhance our competitiveness in this rapidly changing industry. "

The paction with WeWork will help HBC reduce its total debt of 1 billion 600 million yuan, and the total current assets will also increase by 11 billion yuan.

In the past few years, in order to maximize the value potential of its real estate, HBC has cooperated with several real estate enterprises in various countries.

Cooperate with Simon Property Group Inc. to establish a joint venture company: HBS Global Properties Joint Venture.

The latter has many real estate in the United States and Germany.

42 of the real estate owned by the joint venture is from HBC, including the flagship store at Beverly Hills, Fifth Avenue, New York.

A joint venture RioCan-HBC Joint Venture was established in collaboration with RioCan Real Estate Investment Trust, a real estate trust fund in Canada. 10 of its properties are from HBC, located in Vancouver, Montreal and Ottawa.

The Canadian chain store Zeller is sold to the US retail giant Target (Taghit).

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