Home / Knowledge / News / Apparel/Garments / EBITDA surges 35% at Hudson's Bay Company in Q2FY15
EBITDA surges 35% at Hudson's Bay Company in Q2FY15
15
Sep '14
Canadian fashion retailer Hudson's Bay Company (HBC) reported a 35% year-on-year EBITDA surge for the second fiscal quarter or 13-week period ended August 2, 2014.

In the second quarter of 2014, EBITDA rose to $81 million, up $21 million from $60 million in the second quarter of 2013, while EBITDA as a percentage of retail sales was 4.6% compared to 6.3% for the prior year quarter.

HBC said these EBITDA figures include positive impacts of $6 million and $2 million, respectively, due to the required implementation of IFRIC 21.

Inclusion of financials of Saks Fifth Avenue helped retail sales in second quarter of 2014 climb to $1,769 million, up $821 million or 86.6% from $948 million for the prior year.

Of this, Hudson's Bay and Lord & Taylor which are grouped under “Department Store Group” (DSG) grew by 1.1%, Saks Fifth Avenue grew by 2.2%, while that of Saks Fifth Avenue OFF 5TH surged 14.9%, all up from a year ago quarter.

On a local currency basis, consolidated same store sales at HBC in the second quarter of 2014 rose 1.9% year-on-year, with increases of 1.1% at DSG, 2.2% at Saks Fifth Avenue and 14.9% at OFF 5TH.

Digital commerce sales totalled $162 million, including $116 million from Saks and growth of 82.2% at DSG.

HBC said sales growth at DSG was driven by men’s apparel, home and cosmetics, at Saks Fifth Avenue by menswear, gifts and accessories, while sales growth at OFF 5TH was strong across majority of categories.

Again primarily attributable to the inclusion of Saks, gross profit climbed to $700 million in second quarter of 2014, up $332 million from $368 million for the prior year quarter.

Adjusted to exclude purchase price accounting charges related to the acquisition of Saks, gross profit as a percentage of retail sales was 39.7%, an increase of 90 basis points.

“The increase was driven by the inclusion of Saks, which contributed higher gross profit as a percentage of retail sales than HBC”, the fashion retailer explained.

In the second quarter of 2014, SG&A expense totalled $652 million, a rise of $325 million from $327 million for the comparable quarter of 2013, the increase, which HBC again attributed to inclusion of Saks.

Excluding normalization items of $31 million, SG&A as a percentage of retail sales stood at 35.1% in the quarter under review, compared to 32.5% for the prior year quarter, an increase of 260 basis points.

“This increase was a result of strategic investments in our HBC digital business, higher occupancy costs associated with the Queen Street sale and leaseback transaction and expected deleverage of our store expenses, partially offset by synergies and the inclusion of Saks”, HBC informed.

Finance costs fell massively in the second quarter of 2014 to $29 million, down $48 million from $77 million for the same quarter of 2013.


Must ReadView All

Textiles minister Smriti Irani lighting the lamp to inaugurate the 6th edition of the International Apparel and Textile Fair ‘VASTRA 2017’, in Jaipur. Courtesy: PIB

Textiles | On 22nd Sep 2017

Placement rate in textiles sector is 70%: Indian minister

The recent high growth of foreign direct investment (FDI) in the...

Apparel/Garments | On 22nd Sep 2017

New US FTC rule for RN used on textile product labels

The US Federal Trade Commission recently streamlined requirements...

Textiles | On 22nd Sep 2017

Messe Frankfurt acquires Source Africa, ATF textile shows

Messe Frankfurt, one of the world´s leading trade show organisers,...

Interviews View All

Karan Suratwala
Key Textile Accessories Private Limited

Chinese imports are destroying the supply chain

Manuj Terapanthi
Texaura

Transparent supply chain and fair trade will boost sustainable market

Shiladitya K Joshi
Truetzschler India Private Limited

India ITME provides a platform to interact with our stakeholders

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

Divvya and Nidhhi Gambhir
Walnut

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

September 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search