The first quarter revenue registered a decrease of $72 million or 3.3 per cent primarily due to operating fewer stores than a year ago and the comparable sales decline at Lord + Taylor. As disclosed in May 2019, HBC is pursuing strategic alternatives for the Lord + Taylor operating business, including a possible sale or merger, and is closing Home Outfitters by the end of the second quarter.
“We are seeing progress on a number of crucial fronts from our continued work to fix the fundamentals and reposition HBC for the future,” said Helena Foulkes, HBC CEO. “Strategically, we have simplified the organization and placed a greater emphasis on our North American retail operations. We are exercising financial discipline while making the necessary investments to capitalize on our greatest opportunities - Hudson’s Bay and Saks Fifth Avenue. Once the European transactions are complete, we will have finished two real estate transactions at near or better than our estimated equity values. The real estate transactions and our pursuit of strategic alternatives for Lord + Taylor, further demonstrate the bold actions we’ve taken to move the company forward and we are optimistic about our prospects.”
First quarter gross profit declined year-over-year by $48 million, which was offset by a $54 million decrease in selling, general and administrative expenses (SG&A).
"Saks Fifth Avenue’s commitment to the luxury customer continues to payoff with widespread sales increases across key merchandise categories and locations, as well as among our top customers. Our New York City clients have embraced the flagship's new main floor, which redefines the luxury shopping experience with a one-of-a-kind handbag assortment featuring exclusive products and brands only available through Saks. For Hudson’s Bay, we had some quick wins in service and marketing which led to sequential improvements in our comps during each month of the quarter. We are incrementally more confident that our post-holiday diagnosis was correct and our fall assortment will better match our customers’ expectations of Hudson’s Bay. While we have more work to do fixing the fundamentals and strengthening operations, we will continue to create experiences that customers love,” Foulkes continued.
Gross profit margin was 39.0 per cent in the first quarter, down 90 basis points year-over-year. Approximately half of the decline is due to store closures, with the balance driven by a higher proportion of clearance sales in this year’s first quarter. SG&A margin improved by 120 basis points to 38.8 per cent, which includes the savings from a lower store count, including rent. (RR)
Fibre2Fashion News Desk – India
| On 16th Sep 2021
In a recent virtual ceremony, Bangladesh and Australia signed the...
China recently urged the United States to initiate steps to repair...
| On 16th Sep 2021
Bangladesh commerce minister Tipu Munshi is hopeful that the European ...
Increase foreign exchange and create jobs
Instagram & fashion will go a long way together
Uniform designing is a numbers game
Adaptive Control automates, controls and monitors machines, systems and...
Based out of Como, Italy, and with technological expertise of nearly 70...
<b>Gus Bartholomew</b>, co-founder of SupplyCompass, explains to <b>Subir...
Fitesa is a leader in the nonwoven fabrics industry, specialising in...
Hula Global, a leading isolation gown manufacturer in India, has been...
Seevix Material Sciences Ltd, which develops and manufactures synthetic...
Shalini Sharma & Shweta Pundir Sharma
Six Yard Story
Six Yard Story is a premium artisanal brand with a focus to bring handloom ...
Sandeep Gonsalves & Sarah Gonsalves
Sarah & Sandeep
Established in 2012, Sarah & Sandeep is a luxury menswear label...
A Humming Way
A Humming Way (AHW) is inspired by the old-world regalia of Rajasthan...
Letter to Editor
Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.
Subscribe today and get the latest information on Textiles, Fashion, Apparel.