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HUDSON’S BAY REVENUE SLIPS AS SALES FALL AT ALL STORES EXCEPT SAKS FIFTH AVENUE

Toronto-based retailer Hudson’s Bay Company (HBC) reported on
Wednesday that its fourth-quarter revenue slipped to $2.89 billion, down from
$3.05 billion a year earlier when the quarter included an extra week. Excluding
the extra week, revenue in the quarter was down $47 million or 1.6 percent
compared with a year ago.

Overall comparable store sales for the quarter were down 1.4 percent, while they increased 3.9 percent at the company’s Saks Fifth Avenue stores and fell 5.2 percent at its Hudson’s Bay, Lord & Taylor and Home Outfitters stores. Saks Off 5th comparable sales declined 2.1 percent.

HBC reported a net profit of $286 million or $1.20 per share
for the quarter, up from $84 million or 39 cents per share in the same quarter
last year.

However, the retailer said it lost $226 million or 95 cents
per share from its continuing operations compared with a profit of $180 million
or 84 cents per share a year ago.

“We are a far stronger company today than a year ago,
despite some of the top-line challenges this quarter,” said Helena Foulkes, CEO
of HBC. “The strength of Saks Fifth Avenue continued thanks to our stores
outside of New York City as the Fifth Avenue flagship remained under
renovation. In early February, we opened the new main floor, a modern and
expansive experience that redefines luxury retail and showcases one of the
largest luxury handbag assortments in the world.”

“At Hudson’s Bay, we are capable of better results from what
is a solid business,” Foulkes continued. “Merchandise choices sparked the
top-line momentum shift at Hudson’s Bay and we believe those are fixable with
time. Saks Fifth Avenue and Hudson’s Bay offer HBC our greatest long-term
growth opportunities and we are encouraged about what lies ahead.”

Earlier this year, Lord & Taylor’s flagship store on
Fifth Avenue closed its doors after a century. In February, Hudson’s Bay closed
the sale of the Lord & Taylor’s Fifth Avenue building to space-leasing
company WeWork for $1.1 billion.

In February, Hudson’s Bay also said it would review the
stores in its Saks Off 5th division and could close as many as 20 of those
stores in the U.S. The company said it would close its Home Outfitters chain,
which sells housewares, bedding, towels and other household items in Canada.

That same month, the company said it would work with an executive
search firm to recruit a new president of Hudson’s Bay after Alison Coville
stepped down, effective March 1.