Home / Knowledge / News / Retail / HBC clocks revenue of $1.9 bn, comp sales down 0.4% in Q2

HBC clocks revenue of $1.9 bn, comp sales down 0.4% in Q2

17
Sep '19
Pic: HBC
Pic: HBC
HBC's second quarter revenues totalled $1.9 billion with comparable sales down 0.4 per cent including a 19 per cent year-over-year increase in digital sales. Gross margin declined 530 basis points y-o-y to 34 per cent. HBC is a diversified retailer leading businesses across North America including Saks Fifth Avenue, Hudson's Bay, Lord + Taylor and Saks OFF 5TH.

The sales of the company were driven by accelerated growth in digital, continued positive comp at Saks Fifth Avenue, sequential progress at Hudson's Bay and the second consecutive quarter of increased comparable sales at Saks OFF 5TH. Gross margin declined year-over-year. Approximately two-thirds of the gross margin decrease was due to changes in store footprint, vendor relationships and merchandise, the impact of which is expected to lessen slightly during the second half of the year. The remaining one-third was due to a hyper-promotional market environment, said HBC in a press release.

"We continue to concentrate on controlling the 'controllables' - serving our customers and lowering expenses and inventory while making strategic investments for our future. While we've progressed in simplifying the business and strengthening operations, the second quarter demonstrates that we are still in the early stages of what HBC can become," said Helena Foulkes HBC’s CEO. "This quarter we responded as the market moved early to discount merchandise in both luxury and Canadian retail. Our digital performance was a standout with a sharp increase in growth as our changes in strategy, people and infrastructure are paying off. With the Lord + Taylor sale agreement, our focus is now squarely on Saks Fifth Avenue and Hudson’s Bay - businesses that have the greatest potential for HBC amid the consolidating industry."

Saks Fifth Avenue's comparable sales grew for the ninth consecutive quarter by 0.6 per cent. Significant categories with above trend growth included men's, women's ready-to-wear, handbags and beauty.

Hudson's Bay's comparable sales decreased 3.4 per cent in the second quarter, a sequential improvement from the 4.3 per cent decline in the first quarter.

Saks OFF 5TH is in the early stages of its new strategy, which included shifts to its buying, marketing and service model. In the second quarter, Saks OFF 5TH’s comparable sales increased 3.4 per cent with notable gains in jewelry, women's modern clothing and men's classic apparel.

"Saks Fifth Avenue has been posting quarter-after-quarter of industry-leading sales growth by focusing on its 'New Luxury' strategy, which includes merchandise and experiences that can only be found through Saks. The second quarter was bolstered by strong sales through the Fifth Avenue Club, our personal shopping service available in every store, and acceleration in digital growth. The promotional activity in luxury was exceptionally intense in the second quarter and a notable change from the first quarter. For Hudson's Bay, we are working to fix this business to recapture market share over time. Our merchants are modernising our merchandise mix by exiting more than 300 unproductive brands, and adding 100 new and emerging brands to reset the fall assortment. We expect these changes may take time to resonate in the market. Finally, the positive change in Saks OFF 5TH’s performance demonstrates the power of a strategic shift in how we appeal to customers," added Foulkes. (PC)

Fibre2Fashion News Desk – India


Must ReadView All

Pic: Shutterstock

Textiles | On 22nd Oct 2021

China's coal output rises to meet energy shortfalls amid govt measures

China's coal supply has showed signs of picking up with daily...

Pic: Shutterstock

Textiles | On 22nd Oct 2021

Indonesia, China begin feasibility study on coal-to-methanol unit

Indonesia and China recently signed an MoU to conduct a feasibility...

Pic: Shutterstock/TY Lim

Fashion | On 22nd Oct 2021

Balenciaga ranked hottest brand in The Lyst Index Q3 2021

Paris-based luxury fashion house Balenciaga was ranked the hottest...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

The pandemic has reinstated need for organised retail spaces in Tier II...

Textile Industry, Head honchos

Textile Industry
Head honchos

Liquidity is a primary issue in Indian context

Textile Industry, Head honchos

Textile Industry
Head honchos

Delay in adopting water sustainability both financially & environmentally...

Ahmet Gecikli,

Ahmet Gecikli

Ser Mekatronik, founded in 2008, is specialised for providing mechanical...

Susanna Koelblin,

Susanna Koelblin

Founded in 1920, Eastman is a global specialty materials company that...

Barry Goodwin,

Barry Goodwin

UK based Amba Projex Ltd designs, manufactures, and installs industrial...

Shlomzion Chen, Seevix

Shlomzion Chen
Seevix

Seevix Material Sciences Ltd, which develops and manufactures synthetic...

Madison Maxey, Loomia

Madison Maxey
Loomia

Loomia designs and manufactures soft circuit systems that can be produced...

Robert Brookins, Alexium International

Robert Brookins
Alexium International

Alexium International is a specialty chemical development company...

Samant Chauhan, Label Samant Chauhan

Samant Chauhan
Label Samant Chauhan

Delhi based fashion designer, <b>Samant Chauhan</b> who mostly works on...

Vidur Adlakha & Riccardo Bennidini, La Fuori

Vidur Adlakha & Riccardo Bennidini
La Fuori

With an active presence in US, Italy and India, clothing brand La Fuori...

Ruma Devi, Gramin Vikas Evam Chetna Sansthan

Ruma Devi
Gramin Vikas Evam Chetna Sansthan

<b>Ruma Devi i</b>s a jet-setting promoter of artisans who has empowered...

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

Leave your Comments


October 2021

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


Advanced Search