Hudson's Bay Co. agreed to sell its Fifth Avenue Lord & Taylor flagship to WeWork.
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Hudson’s Bay Company posted a third quarter net loss of 243 million Canadian dollars, or $191.8 million, due to lower gross margins, declining sales, and higher costs, compared to a net loss of 125 million Canadian dollars in the year ago period.
The company also cited depreciation and amortization costs and a lower income tax benefit, in the last quarter ended Oct. 28.
Third quarter retail sales fell 4.2 percent to 3.2 billion Canadian dollars while comparable sales on a constant currency basis declined by 3.2 percent.
“We are making the necessary changes in our retail operations to drive performance across our banners and took dramatic steps during the third quarter to continue the transformation of HBC and ensure that we are well positioned to succeed in a rapidly-evolving retail environment,” said Richard Baker, governor, executive chairman and interim chief executive officer.
Baker cited the sale of the Lord & Taylor flagship, the partnership with WeWork and the investment by Rhone Capital into HBC as improving the economics of the stores in the future.
