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

15 Apr '13

7 min read

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 same-store sales growth at Hudson's Bay in Canada and early progress on cost reduction initiatives, offset in part by the previously announced impact of Hurricane Sandy on Lord & Taylor in the United States.

Highlights (14-week and 53-week periods ended February 2, 2013)

-Consolidated sales increased 6.7% for the 14-week period and 5.9% for the 53-week period.

Same store sales:

-Consolidated same store sales increased 2.1% for the comparable 13-week period and increased 4.0% for the comparable 52-week period.

- Hudson's Bay stores grew 6.1% for the comparable 13-week period and grew 5.4% for the comparable 52-week period.

- Lord & Taylor stores declined 2.9% on a U.S. dollar basis for the comparable 13-week period due primarily to the impact of Hurricane Sandy and grew 2.2% on a U.S. dollar basis for the comparable 52-week period.

-Online sales grew 57.0% for the comparable 13-week period and 63.0% for the comparable 52-week period.

- $8 million in annual cost savings initiatives were delivered in the fourth quarter.

- Normalized EBITDA was $177.1 million or 12.8% of sales for the fourth quarter and $310.0 million or 7.6% of sales for the full year.

- Normalized net earnings were $0.86 per share for the 14-week period compared to $0.91 per share for the 13-week period the previous year. Normalized net earnings for the 53-week period were $0.71 per share compared to $0.65 per share for the 52-week period ended January 28, 2012.

- A dividend of $0.09375 per common share was declared, payable on April 15, 2013 to shareholders of record on March 28, 2013.

Financial Results

With the exception of same store sales comparisons or unless otherwise noted, all comparative figures below and in the "Highlights" section and throughout this news release are for the 14-week (or "fourth quarter") and 53-week periods (or "Fiscal 2012") ended February 2, 2013 compared to the 13- and 52-week periods ended January 28, 2012.

During the week commencing October 28, 2012 Hurricane Sandy caused significant damage and disruption to many communities in the U.S. northeast, where the majority of Lord & Taylor stores are located. As further described below, Hurricane Sandy had a significant negative impact on fourth quarter results.

Retail sales were $1,386.5 million for the 14-week period ended February 2, 2013, an increase of $86.9 million or 6.7% from $1,299.6 million for the 13-week period ended January 28, 2012. The 14th week contributed $50.0 million in retail sales.

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