TORONTO, Jan. 3, 2013 (GLOBE NEWSWIRE) -- Hudson's Bay Company ("HBC" or the "Company") (TSX:HBC) today reported unaudited consolidated same store sales increase of 1.9% for the 9-week period ended December 29, 2012. Adjusting for the previously disclosed US $20 million impact of Hurricane Sandy, consolidated same store sales would have increased 3.7% for the 9-week period ended December 29, 2012. For the 48-week period ended December 29, 2012 consolidated same store sales increased 4.0% (4.6% adjusted for the impact of Hurricane Sandy).
Nine Week Period Ended December 29, 2012 Compared to the Nine Week Period Ended December 31, 2011
Retail sales increased by $25.0 million, or 2.3% from $1,084.0 million for the 9-week period ended December 31, 2011 to $1,109.0 million for the 9-week period ended December 29, 2012. Over the same period consolidated same store sales increased by 1.9%, with an increase of 6.7% at Hudson's Bay and a decrease of 4.4% (US dollars) at Lord & Taylor. Adjusted for the impact of Hurricane Sandy, Lord & Taylor same store sales would have increased 0.8% for the period.
Retail sales growth was driven by continued strength in men's apparel, handbags, fine jewellery, watches, Topshop branded apparel, and cosmetics/fragrances. Sales from the Company's Omni-channel initiatives grew 59.3% from $30.2 million to $48.1 million for the 9-week period ended December 29, 2012, excluding in-store returns.
Forty-Eight Week Period Ended December 29, 2012 Compared to the Forty-Eight Week Period Ended December 31, 2011
Retail sales increased by $165.6 million, or 4.6% from $3,634.0 million for the 48-week period ended December 31, 2011 to $3,799.6 million for the 48-week period ended December 29, 2012. Over the same period consolidated same store sales increased by 4.0%, with an increase of 5.5% at Hudson's Bay and 2.0% (US dollars) at Lord & Taylor. Consolidated same store sales were impacted by positive 0.4% due to the foreign currency translation of the Lord & Taylor results and offset by lower sales at Home Outfitters. In addition, Lord & Taylor opened two new stores in Ridge Hill, NY and Rockingham, New Hampshire, during the first quarter of 2012, which increased total sales.
Retail sales growth was driven by strength in ladies and men's apparel, handbags, ladies shoes Topshop branded apparel, and cosmetics/fragrances. This sales growth was partially offset by a decline in major home fashion due to the reallocation of selling space from this department to ladies apparel and shoes. In addition, sales from the Company's Omni-channel initiatives grew 63.5% from $76.3 million to $124.7 million for the 48-week period ended December 29, 2012, excluding in-store returns.
| Continuing Operations (Unaudited) | ||||
| 9-week period ended | 48-week period ended | |||
| (millions of Canadian dollars) | December 29, 2012 | December 31, 2011 | December 29, 2012 | December 31, 2011 |
| Retail sales | $1,109.0 | $1,084.0 | $3,799.6 | $3,634.0 |
| Same Store Sales Percentage Change (1) | ||||
| Continuing operations(2) | 1.9% | 7.5% | 4.0% | 5.2% |
| Continuing operations (excluding impact of Foreign Exchange) (2) | 2.4% | 8.0% | 3.6% | 6.7% |
| Hudson's Bay(2) | 6.7% | 10.7% | 5.5% | 7.3% |
| Lord & Taylor(3) | -4.4% | 6.7% | 2.0% | 7.2% |
| Store Information | ||||
| Store count(4) | ||||
| Hudson's Bay | 90 | 91 | ||
| Lord & Taylor | 48 | 46 | ||
| Home Outfitters | 69 | 69 | ||
| Total Stores | 207 | 206 | ||
| Notes: | ||||
| (1) The Company calculates same store sales on a year-over-year basis using sales from stores operating for at least 13 months, Internet sales and clearance store sales. | ||||
| (2) Our sponsorship of the Vancouver 2010 Winter Olympics and our status as the exclusive supplier of the Canadian Olympic Collection resulted in significant non-recurring sales in the fourth quarter of Fiscal 2009 and the first quarter of Fiscal 2010. In order to provide meaningful comparisons on a period over period basis, we disclose same store sales percentage change information excluding the impact of sales of Olympic merchandise for the first quarter of 2010 of $50.5 million. | ||||
| (3) Same store sales of Lord & Taylor are calculated in U.S. dollars. | ||||
| (4) Lord & Taylor operates two Lord & Taylor Home stores and three Lord & Taylor Outlet stores that are not included in the store count. | ||||
About Hudson's Bay Company
Hudson's Bay Company ("HBC"), founded in 1670, is North America's longest continually operated company and is a leading retailer offering a wide selection of branded merchandise in Canada and the United States through its three banners. In the United States, HBC operates Lord & Taylor, a fashion department store with 48 full-line store locations throughout the northeastern United States and in two major cities in the Midwest. In Canada, HBC operates Hudson's Bay, Canada's largest national branded department store with 90 locations. HBC also operates Home Outfitters, a kitchen, bed and bath superstore with 69 locations. With approximately 29,000 associates in Canada and the U.S., Hudson's Bay Company banners provide stylish, quality merchandise at great value and with a dedicated focus on exceeding customers' expectations.
Forward looking statements
Information in this press release that is not current or historical factual information may constitute forward-looking information, including future-oriented financial information and financial outlooks, within the meaning of securities laws. This information is based on certain assumptions regarding expected growth, results of operations, performance, and business prospects and opportunities. While the Company considers these assumptions to be reasonable, based on information currently available, they may prove to be incorrect. Forward-looking information is subject to a number of risks, uncertainties and other factors that could cause actual results to differ materially from what the Company currently expects. These risks, uncertainties and other factors include, but are not limited to: credit, market, currency, operational, liquidity and funding risks, including changes in economic conditions, interest rates or tax rates, the timing and market acceptance of future products, competition in the Company's markets, the growth of certain business categories and market segments and the willingness of customers to shop at the Company's stores, the Company's margins and sales and those of the Company's competitors, the Company's reliance on customers, risks and uncertainties relating to information management, technology, supply chain, product safety, changes in law, regulations, competition, seasonality, commodity price and business disruption, the Company's relationships with suppliers and manufacturers, changes to existing accounting pronouncements, the ability of the Company to successfully implement its strategic initiatives, changes in consumer spending, managing our portfolio of brands and our merchandising mix, seasonal weather patterns, economic, social, and political instability in jurisdictions where suppliers are located, increased shipping costs, potential transportation delays and interruptions, the risk of damage to the reputation of brands promoted by the Company and the cost of store network expansion and retrofits, compliance costs associated with environmental laws and regulations, fluctuations in currency and exchange rates, commodity prices, the Company's ability to maintain good relations with its employees, changes in the law or regulations regarding the environment or other environmental liabilities, the Company's capital structure, funding strategy, cost management programs and share price, the Company's ability to integrate acquisitions and the Company's ability to protect its intellectual property.
For more information on these risks, uncertainties and other factors the reader should refer to the Company's filings with the securities regulatory authorities, including the Company's supplemented PREP prospectus dated November 19, 2012, which is available on SEDAR at www.sedar.com. To the extent any forward-looking information in this press release constitutes future-oriented financial information or financial outlooks, within the meaning of securities laws, such information is being provided to demonstrate the potential of the Company and readers are cautioned that this information may not be appropriate for any other purpose. Future-oriented financial information and financial outlooks, as with forward-looking information generally, are based on assumptions and subject to risks, uncertainties and other factors. Actual results may differ materially from what the Company currently expects. Other than as required under securities laws, the Company does not undertake to update any forward-looking information at any particular time. The reader should not place undue importance on forward-looking information and should not rely upon this information as of any other date. All forward-looking information contained in this press release is expressly qualified in its entirety by this cautionary statement.
E-HBC1670