HBC Reports Second Quarter 2019 Financial Results

 

 

 

 

Highlights:

  • Revenues totalled $1.9 billion, with comparable sales down 0.4% including a 19% year-over-year increase in digital sales.
  • Saks Fifth Avenue’s comparable sales up 7.3% on a two-year stacked basis, which includes 0.6% comp in the second quarter.  Saks OFF 5TH’s comp sales up 3.4% driven by new customer growth.
  • Continued inventory and expense discipline with comparable inventory down 5% year-over-year and a $34 million decrease in SG&A resulting in 170 basis points of SG&A leverage
  • Net loss from continuing operations of $462 million, includes $150 million to write-down the value of deferred tax assets.  Adjusted EBITDA was $52 million in the second quarter 

HBC’s second quarter sales 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.  

“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.” 

For the full press release, please click here. 

Source: Financial Post


Dollarama Reports Fiscal 2020 Second Quarter Results

 

 

 

 

Highlights:

  • 9.0% increase in sales and 4.7% increase in comparable store sale
  • 50 basis-point increase in full-year comparable store sales assumption to range of 3.5% to 4.5%
  • Narrowing of gross margin as a percentage of sales annual guidance to range of 43.25% to 43.75%
  • Closing of previously announced acquisition of 50.1% interest in Latin American value retailer Dollarcity subsequent to quarter-end, establishing second growth platform in complement to Canadian growth strategy.

On September 12th, Dollarama Inc. reported increases in sales, net earnings and earnings per common share for the second quarter ended August 4, 2019. Diluted net earnings per common share rose 7.1% to $0.45.

During the second quarter of Fiscal 2020, the Corporation opened 14 net new stores, compared to 8 net new stores during the corresponding period of the previous fiscal year. 

“Customers are responding positively to our compelling product offering and various merchandising tactics, as demonstrated by our strong top line performance for a second consecutive quarter. Based on our performance to date, we are increasing our full-year comparable store sales growth assumption to a range of 3.5% to 4.5%,” said President and Chief Executive Officer, Neil Rossy. 

“Looking at the bottom line, we expect margins to be in the lower half of our previously disclosed full-year guidance range, which we have narrowed accordingly. We are confident that our sustained focus on stimulating top line growth – while still maintaining industry-leading margins – is the right approach in what continues to be a competitive retail environment.” 

For the full press release, please click here. 

Source: PR Newswire