Hudson's Bay Company online sales zooms 63% in FY'13

 

Growth in these categories was partially offset by a decline in major home fashion due to the reallocation of selling space from this department to apparel and shoes. Online sales for the Company grew 62.8% (57.0% on a 13-week basis) from $35.6 million for the 13-week period ended January 28, 2012 to $58.0 million for the 14-week period ended February 2, 2013.

Hudson's Bay Company reported its results for the 14-week and 53-week periods ended February 2, 2013. The 14-week period was characterized by strong #

 

For the same periods, 13-week consolidated same store sales increased by 2.1%, with an increase of 6.1% at Hudson's Bay and a decrease of 2.9% (U.S. dollars) at Lord  & Taylor.  Negative foreign exchange rate movements reduced consolidated same store sales by 0.6%.

 

The improvement in same store sales at Hudson's Bay was driven primarily by stronger promotional events including "One Day Sales" and the Boxing Day Event. Hudson's Bay's same store sales growth follows increases of 8.7% and 8.6% in the fourth quarters of Fiscal 2011 and Fiscal 2010 (excluding Vancouver Olympic Sales), respectively. The decrease in same store sales at Lord & Taylor was due to the direct and indirect impact of Hurricane Sandy at the beginning of the quarter, weaker than expected sales in the weeks leading up to Christmas and subsequent clearance activity to reduce excess inventory.

 

For Fiscal 2012, retail sales were $4,077.0 million an increase of $277.4 million or 5.9% compared to $3,849.6 million in Fiscal 2011. For the same periods, consolidated same store sales grew 4.0%, with Hudson's Bay stores growing 5.4% and Lord & Taylor growing 2.9% on a constant currency basis.

 

Gross profit was $521.6 million or 37.6% of retail sales for the 14-week period ended February 2, 2013, compared to $503.8 million or 38.8% of retail sales for the 13-week period ended January 28, 2012. Gross Profit increased $17.8 million due to sales growth.  The decrease in gross profit rate was primarily attributable to increased year-over-year inventory clearance activity at Lord & Taylor due to the significant effect of Hurricane Sandy on customers and sales. Additional margin rate decline also resulted from the higher mix of merchandise sold during planned promotional events, including "One Day Sales" and our Boxing Day Event at Hudson's Bay.

 

For Fiscal 2012, gross profit was $1,590.0 million or 39.0% of retail sales compared to $1,543.6 million or 40.1% of retail sales for Fiscal 2011. The gross margin rate was impacted by increased clearance activity at Lord & Taylor following Hurricane Sandy, the unfavourable inventory shortage previously disclosed in the third quarter of Fiscal 2012, planned increases in promotional activities and additional clearance activity at Hudson's Bay.