Hudson’s Bay Co. reported that consolidated comparable-store sales rose 4.4 percent in the first quarter ending April 30.
On a constant currency basis, consolidated comp sales decreased 1 percent. The department store group comp sales increased 2.3 percent.
The HBC off-price stores, including Saks Off 5th and Gilt, experienced a 4.1 percent decrease versus last year’s increase of 10.3 percent. Saks Fifth Avenue comp sales fell by 5.7 percent. HBC Europe comp sales increased slightly by 0.7 percent.
“Consistent with other U.S. luxury retailers, Saks Fifth Avenue experienced continued headwinds,” said chief executive officer Jerry Storch. “In HBC’s off-price business, the integration of Gilt is proceeding smoothly and we have now successfully finished revising the pricing strategy at Saks Off 5th, reducing overall promotional activity by offering great value on an everyday basis.”
Total digital sales increased 7.4 percent on a constant currency basis. Storch said he was encouraged by the results of the digital business.
Storch added, “In a challenging retail market, HBC’s results reflect our diversification across both geography and retail concepts. DSG had solid performance during the quarter led by the ongoing strength of Hudson’s Bay in Canada, while HBC Europe saw positive sales growth despite the recent geopolitical uncertainty.”
The company will report its full financial results on June 9.
Hudson Bay Co. stock has declined 40 percent in value this past year. The year high for the stock was 29.52 Canadian dollars, or $22.88, by today’s rates. It was lately trading at 15.81 Canadian dollars, or $12.25.