Hudson's Bay Company reported its results for the 13-week and 52-week periods ended February 1, 2014 (the "fourth quarter" and "Fiscal 2013", respectively). The fourth quarter and Fiscal 2013 were characterized by strong sales growth at Hudson's Bay and Saks. Lord & Taylor same store sales slightly declined.
Fourth Quarter Highlights (13-week period ended February 1, 2014). HBC's financial results for the fourth quarter of 2013 include Saks Incorporated ("Saks").
Consolidated same store sales grew 6.6%, or 2.1% excluding the impact of foreign exchange, from the comparable 13-week period of Fiscal 2012.
-Hudson's Bay grew 5.2%.
-Lord & Taylor declined 1.3% on a U.S. dollar basis.
-Saks grew 3.1% on a U.S. dollar basis.
Digital sales were $252.3 million, reflecting both the acquisition of Saks and strong organic growth of 59% from the comparable 13-week period at the Lord & Taylor and Hudson's Bay banners.
Normalized EBITDA was $253.5 million, or 10.5% of sales, compared to $177.1 million, or 12.8% of sales, in the 14-week fourth quarter of 2012. Normalized EBITDA for Legacy HBC was $163.6 million compared to the most recent guidance range of $160 million to $180 million.
HBC completed its acquisition of Saks in an all-cash transaction valued at approximately U.S.$2.9 billion, including debt, on November 4, 2013.
The Company implemented several organizational changes to both advance HBC's growth initiatives and accelerate the integration of Saks, including the appointments of Donald Watros to President, HBC; Marigay McKee to President, Saks Fifth Avenue; Elizabeth Rodbell to President, Department Store Group; Jonathan Greller to President, Outlets; and Michael Burgess to President, HBC Digital.
"Following our acquisition of Saks in November, we have developed a strategic roadmap with four core growth strategies," stated Richard Baker, HBC's Governor and Chief Executive Officer. "First is the expansion of HBC Digital to drive sales across all of our banners. Second, we will prioritize the expansion of OFF 5TH, Saks' value-oriented format.
We intend to significantly increase OFF 5TH's presence through new stores and digitally. Expansion of Saks into Canada is our third major strategy. We believe the Canadian market represents an opportunity for up to seven full-line Saks Fifth Avenue locations and up to 25 OFF 5TH stores, as well as digital commerce initiatives.