Hudson’s Bay’s Saks luxury play pays off again: Bargain banner Off Fifth leads sales jump | Financial Post
Trading Desk
With Hudson s Bay Co. s latest announcement of real estate deals worth $4.2 billion, it seems that, against the odds, HBC governor and executive chairman Richard Baker is outperforming his finance-sector fellows in the retail business. Keep reading .
While the Canadian retailer posted strong fourth-quarter results at all of its banners, including The Bay, Saks and Lord & Taylor as well as their digital divisions, ml it was the off-price Saks Off Fifth banner that posted the strongest sales in the period ended Jan. 31 and the last fiscal ml year, a trend that shows no signs of slowing down.
Same-store sales, ml an important retailing bellwether, rose 3.2 per cent overall at HBC s chains, led by a climb of 12.1 per cent at Saks Off Fifth, 2.3 per cent at The Bay and Lord & Taylor and 2.6 per cent at Saks.
For the full year, the performance of the upscale bargain banner was even more impressive a 15.1 per cent same-store sales rise at Saks Off Fifth, compared with 1.5 per cent growth at The Bay and Lord and Taylor, and 2.1 per cent growth ml at Saks.
We are going to continue to grow the [Saks Off Fifth] business quite rapidly from a unit growth [standpoint], ml and we will continue driving ml the [comparable] sales quarter after quarter, chief executive Jerry Storch told analysts on a conference call showcasing strong year-over-year sales and profit gains.
When Canada s oldest ml retailer closed the Saks deal in the fall of 2013, executive chairman Richard Baker said his priorities were to expand HBC s digital business and step up the expansion of Off Fifth.
We know that there is a polarization in retail the luxury segment is doing really well and the value segment is doing well, and HBC has smartly positioned itself to take advantage of the luxury retail rebirth, and they have made the classic department store channel relevant again, said Bruce Edward Winder, a retail industry consultant at J.C. Williams Group in Toronto.
Expanding Off Fifth is smart because people always want a bargain, and this allows them to participate in the luxury channel without having to pay the full price. People love brands, and they can be aspirational when it comes to their shopping.
HBC will spend $350 million to $400 million in 2015 to build one Saks Fifth Avenue ml store and between 12 to 14 Off Fifth stores. In addition, HBC said it would invest an incremental $50 million during the year on growth initiatives, including accelerating the pace of new store openings at Off Fifth, which has 78 locations in the United ml States, up from 72 a year earlier.
The Toronto-based department ml store operator, which has 322 stores, posted net profit from continuing operations of $111 million, or 61 cents per share, in the fourth quarter compared with $37 million, (21 cents), in the same period a year ago. Sales climbed 9.3 per cent to $2.63 billion.
Tax tips for investors: Clearing up real estate confusion Burger King Worldwide Inc announces deal to buy Tim Hortons
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This story was produced by Postmedia Works on behalf of Market ml One Media Group for commercial purposes. Postmedia ml s editorial departments had no involvement in the creation of this content. The forgotten high-grade ml Canadian gold camp
Active Investor was produced by Postmedia's advertising department in collaboration ml with iShares by BlackRock to promote awareness of this topic for commercial purposes. Postmedia's editorial departments had no involvement in the creation of this content. Active Investor
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Trading Desk
With Hudson s Bay Co. s latest announcement of real estate deals worth $4.2 billion, it seems that, against the odds, HBC governor and executive chairman Richard Baker is outperforming his finance-sector fellows in the retail business. Keep reading .
While the Canadian retailer posted strong fourth-quarter results at all of its banners, including The Bay, Saks and Lord & Taylor as well as their digital divisions, ml it was the off-price Saks Off Fifth banner that posted the strongest sales in the period ended Jan. 31 and the last fiscal ml year, a trend that shows no signs of slowing down.
Same-store sales, ml an important retailing bellwether, rose 3.2 per cent overall at HBC s chains, led by a climb of 12.1 per cent at Saks Off Fifth, 2.3 per cent at The Bay and Lord & Taylor and 2.6 per cent at Saks.
For the full year, the performance of the upscale bargain banner was even more impressive a 15.1 per cent same-store sales rise at Saks Off Fifth, compared with 1.5 per cent growth at The Bay and Lord and Taylor, and 2.1 per cent growth ml at Saks.
We are going to continue to grow the [Saks Off Fifth] business quite rapidly from a unit growth [standpoint], ml and we will continue driving ml the [comparable] sales quarter after quarter, chief executive Jerry Storch told analysts on a conference call showcasing strong year-over-year sales and profit gains.
When Canada s oldest ml retailer closed the Saks deal in the fall of 2013, executive chairman Richard Baker said his priorities were to expand HBC s digital business and step up the expansion of Off Fifth.
We know that there is a polarization in retail the luxury segment is doing really well and the value segment is doing well, and HBC has smartly positioned itself to take advantage of the luxury retail rebirth, and they have made the classic department store channel relevant again, said Bruce Edward Winder, a retail industry consultant at J.C. Williams Group in Toronto.
Expanding Off Fifth is smart because people always want a bargain, and this allows them to participate in the luxury channel without having to pay the full price. People love brands, and they can be aspirational when it comes to their shopping.
HBC will spend $350 million to $400 million in 2015 to build one Saks Fifth Avenue ml store and between 12 to 14 Off Fifth stores. In addition, HBC said it would invest an incremental $50 million during the year on growth initiatives, including accelerating the pace of new store openings at Off Fifth, which has 78 locations in the United ml States, up from 72 a year earlier.
The Toronto-based department ml store operator, which has 322 stores, posted net profit from continuing operations of $111 million, or 61 cents per share, in the fourth quarter compared with $37 million, (21 cents), in the same period a year ago. Sales climbed 9.3 per cent to $2.63 billion.
Tax tips for investors: Clearing up real estate confusion Burger King Worldwide Inc announces deal to buy Tim Hortons
Find a Story Stock Search
This story was produced by Postmedia Works on behalf of Market ml One Media Group for commercial purposes. Postmedia ml s editorial departments had no involvement in the creation of this content. The forgotten high-grade ml Canadian gold camp
Active Investor was produced by Postmedia's advertising department in collaboration ml with iShares by BlackRock to promote awareness of this topic for commercial purposes. Postmedia's editorial departments had no involvement in the creation of this content. Active Investor
Read David's ml recent ml articles
Remembering
Contact us
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