Hudson’s Bay Co. wants to be the next stock market darling.The retailer, which owns Lord & Taylor, The Bay and Home Outfitters, has filed for an initial public offering on the Toronto Stock Exchange that could value the group at 2.2 billion to 2.6 billion Canadian dollars, or up to $2.55 billion. The IPO is expected to come in six to eight weeks and could raise a combined 400 million Canadian dollars, or $392.2 million, for the company and its architect, the real-estate-player-turned-retailer Richard Baker, sources said.The company’s registration statement was made public Wednesday and while it did not detail how many shares HBC might float, in the past Baker has said it could be up to 20 percent of the retailer. The registration statement showed a department store that is being reinvented, but still growing and buttressed financially by significant real estate assets. HBC has been a company on the move under Baker, replacing brands, bringing in Topshop to its flagship chain and moving to triple its private-label presence. The stock sale would boost the profile of Canadian retailing, restate the case for department store stocks, give the company money to continue to improve its operations and help Baker’s NRDC Equity Partners profit from its investments in Lord & Taylor and The Bay, which were acquired in 2006 and 2008, respectively.All together, HBC has 207 doors in the U.S. and Canada. The firm logged net earnings of 1.45 billion Canadian dollars, or $1.4 billion, for the fiscal year ended Jan. 28. Normalized earnings before interest, taxes, depreciation and amortization totaled 312.9 million Canadian dollars, or $310 million, and sales tallied 3.85 billion Canadian dollars, or $3.8 billion. Over the last two fiscal years, sales per square foot rose 20 percent at Lord & Taylor to $210, while sales per square foot at The Bay increased 9 percent to 133 Canadian dollars, or $131.80. Over the next three to five years, the retailer expects Lord & Taylor’s sales per square foot to grow to $240 to $250, as The Bay’s sales per square foot grow to 170 to 180 Canadian dollars, or as high as $176.48.Historical dollar figures are given at the average exchange rate for the period to which they refer.The registration filing highlights the company’s real estate assets. That’s no surprise since Baker, who is governor and chief executive officer, was initially attracted to both Lord & Taylor and The Bay’s real estate. Baker caught the retail bug after buying the two chains and consolidated them earlier this year under the control of president Bonnie Brooks. Only some details of executive compensation were included in the filing, but Baker’s salary for 2012 is given as 600,000 Canadian dollars, or $588,264. Brooks’ pay this year includes a salary of 1 million Canadian dollars, incentive pay of 1 million Canadian dollars, a pension valued at 643,820 Canadian dollars and other compensation of 2.7 million Canadian dollars — a total of $5.2 million.The company is positioning itself at the upper part of the midtier. It has revamped its merchandising to carry more modern fashions. And Lord & Taylor, which is the more upscale of the two chains, is seen as an expansion vehicle.“We have a valuable real estate portfolio which is strategically located in core retail locations across Canada and the eastern and mid-western United States,” the company said in the filing. “The company owns or ground leases more than 11 million square feet of prime retail space, including flagships in Toronto, Vancouver, Calgary, Montreal, New York, Westchester and on Long Island.” HBC said this real estate gave it more flexibility and financing options.“Given the relative scarcity of comparable prime retail properties in Canada and the eastern United States, we believe our real estate portfolio provides us with a sustainable competitive advantage and acts as a significant barrier to entry in these markets,” the filing said.RBC Capital Markets, BMO Capital Markets, CIBC and Bank of America Merrill Lynch are underwriting the offering.Canadian retailing has come into the spotlight lately. Target Corp. is making its entrée, after Baker sold the discounter the leases for HBC’s Zellers chain for $1.84 billion. Nordstrom is also entering the market in 2014 with a Calgary store.
To celebrate Pride 2018, @themarcjacobs released the #GratefulNotHateful campaign, a social media initiative aimed at extending Pride beyond the parade. Inspired by Jacobs’ everyday outlook, the campaign features Jacobs along with a group of models and social media stars who are members and supporters of the LGBT community, all seen wearing @marcbeauty’s Highliner Gel Eye Crayons in colors of the rainbow. Head to our Instagram stories to see close-ups of the liner. #wwdbeauty
Virgil Abloh’s dad Nee and Don Crawley, cofounder of RSVP Gallery, were some of the hometown crew at the Chicago-born designer’s debut show for Louis Vuitton. (📸: @jdiderich ) #wwdmens #louisvuitton #virgilabloh
About last night: @marycharteris and @adwoaaboah hit up Hyde Park for the Serpentine Galleries’ annual summer party held in partnership with @chanelofficial. Head to WWD.com to see more photos. #wwdfashion
“This is Paris, my first show. I’m all about democracy. If some kid shows up, flew from New Jersey to just be around, let’s get him a seat.” — @virgilabloh tells WWD’s @jdiderich ahead of his first show for @louisvuitton men’s. (📸: @alfredo_piola ) #wwdmens #virgilabloh #louisvuitton
“Kate Spade was a true fashion icon who brought joy to the lives of women around the world, and inspired women to live life to the fullest. We are dedicated to carrying on her legacy,” said Anna Bakst, brand president and chief executive officer of @katespadeny. The Kate Spade Foundation announced that it will be donating $1 million to suicide prevention and mental health awareness in tribute to the recent death of Kate Spade. Read more on WWD.com. #wwdnews (📷: @chinseephoto)
A first look at @virgilabloh’s sneakers for @louisvuitton. Abloh spoke to WWD about his debut collection for Louis Vuitton, creating @kendalljenner’s #metgala outfit and redefining the heritage brand. Read the full story on WWD.com. #wwdfashion 📷: @alfredo_piola)
The world’s largest producer of denim @iskodenim is sharing the strategy behind its product development process. Read our full interview with ISKO’s product development manager Baris Ozden on the company’s extensive research practices, upcoming denim trends and the latest material innovations on WWD.com. #iskodenim