Canada-based Hudson’s Bay Co. saw profits and revenues soar in the fourth quarter.
The owner of Lord & Taylor, Saks Fifth Avenue, Off Fifth and the newly-acquired Gilt Groupe said its net income in Q4 climbed more than 220 percent to $370 million (CAD), or $281.2 million. Diluted earnings per share (EPS) were $1.88 (CAD), or $1.43.
Fourth quarter consolidated sales increased 70.4 percent to $4.5 billion (CAD), or $3.4 billion. Comparable sales in the quarter gained 11 percent, or 1.8 percent on a currency-neutral basis.
“I am proud of HBC’s many accomplishments in 2015,” HBC governor and executive chairman Richard Baker said in a release. “The diversity of our banners in terms of geography and consumer segment helped us navigate a challenging retail environment and resulted in 2015 comparable store sales growth of 2.5 percent on a constant currency basis.”
Baker added that he expects the company’s 2015 acquisition of Galeria Holding, parent German mega-department store chain Galeria Kaufhof and Belgium department store Galeria Inno to boost the company’s revenue by 50 percent.
Regarding full-year growth, net earnings were $387 million (CAD), or $294.1 million, compared to $233 million (CAD), or $177.1 million, in 2014. Consolidated sales increased 36.6 percent to $11.2 billion (CAD), or $8.5 billion. (All conversions based on current exchange rates.)
“In the face of a challenging retail environment, our teams came together, and we continued our relentless focus on our customers,” HBC CEO Jerry Storch said in a release. “Our 2015 comparable digital sales growth of 23.2 percent, on a constant currency basis, is the result of our innovative offerings delighting our customers, as well as enhancements that we have made to our e-commerce platforms and fulfillment capabilities. Our all channel model is further enhanced with the Feb. 1 acquisition of Gilt, and we are working on integrating its industry leading mobile and personalization capabilities across our banners.”
Storch added, “Throughout the year, we focused on increasing operational efficiencies and were able to generate new savings of over $60 million during the year as the result of the Saks integration and our North American realignment initiative. Our expense reduction initiatives are an ongoing process, and we will continue our focus on increasing operational efficiencies and implementing best practices across our banners throughout 2016.”