HBC investing in digital to help grow its business online and in stores

Hudson’s Bay Co. is looking to expand its online shopping capabilities to grow its business, chief executive Richard Baker says. The focus comes as the retailer reported a profit of $29.1 million in its latest quarter as its acquisition of U.S. luxury retailer Saks helped sales increase nearly 75%. Baker says one of the reasons […]

Hudson’s Bay Co. is looking to expand its online shopping capabilities to grow its business, chief executive Richard Baker says.

The focus comes as the retailer reported a profit of $29.1 million in its latest quarter as its acquisition of U.S. luxury retailer Saks helped sales increase nearly 75%.

Baker says one of the reasons the company bought Saks last year was that the U.S. retailer’s digital capabilities were more developed.

“A customer that shops with us both in-store and online spends three to four times as much as single-channel shopper and 70% of retail transactions are influenced by the digital experience,” he said told a conference call with analysts.

“So these efforts will not only drive digital expansion, but also create a positive impact on our brick-and-mortar businesses.”

The company has set a goal of annual sales of $10 billion by its 2018 financial year.

The company reported Thursday its profit amounted to six cents per diluted share on $2.41 billion in sales in the quarter ended Feb. 1. That compared with a profit of $86.8 million or 75 cents per diluted share on $1.39 billion in sales a year ago.

HBC says same-store sales at its Hudson’s Bay stores were up 5.2%, while Saks same-store sales grew 3.1% on a U.S. dollar basis.

Its Lord and Taylor stores saw same-store sales fall 1.3% on a U.S. dollar basis.

Online sales totalled $252.3 million as sales related to Hudson’s Bay and Lord and Taylor increased by roughly 59%.

In its outlook, HBC says it expects total sales of between $7.8 billion and $8.1 billion for its 2014 financial year based on same-store sales rising by low to middle single digits.

Normalized earnings before interest, taxes, depreciation and amoritization for the coming year are expected to be between $580 million and $620 million.

HBC shares were down 74 cents at $18.08 in morning trading on the Toronto Stock Exchange.

Uncategorized Articles

Shopping malls making food greater part of the menu

Food courts getting more and better real estate as malls shop of customer retention

Delissio opens pop-up pizzeria

Nestlé brand targets millennials with personalized pizza experience

The great belated ad block debate

Passionate voices for and against ad blocking meet at AdTech Canada 2016

Fools rush in… and they probably don’t need to

Anomaly's Johnny Vulkan shows how thin the line between brave and bungling can be

Drinks with… Deborah Hall

A teatime chat about women in tech at Toronto's SoHo House

The List: Tech Players

Six companies make the inaugural Tech Player of the Year shortlist

Sears’ Mission: Chasing Amy

Shaking up the floor plan and tapping into suburban herritage

30U30: Amanda Lai

The author of her own professional fate, she's taken a publishing giant to new social media heights