Hudson’s Bay Co. lost $243 million in its third-quarter compared to last year’s sales. Last year, the company’s retail sales reached $3.30 billion. This year’s sales, in the same quarter, only reached $3.16 billion, resulting in a decrease of four per cent.
HBC’s affiliates, such as Saks Firth Avenue, saw sales but there still remained an overall decrease since last year, ultimately not meeting the company’s sales expectations. As a result, the HBC shares have also taken a plunge—falling 13.28 per cent.
HBC’s chief financial officer, Ed Record, explained that some of HBC’s transformation plan generated some operational challenges. “We know we can do better, and our highest priorities include increasing comparable sales, improving margins, and prioritizing our capital investments as we focus on further developing our digital business,” Record said. “Our emphasis on digital continues to grow, and we are re-allocating resources to improve HBC’s digital platforms and online capabilities. We also plan on reducing total inventory as part of an effort to moderate promotional activity and increase full price selling.”
Only time will tell if sales increase with the holiday season underway.