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.