Canadian retailer Hudson’s Bay posts profit below estimates – Reuters

Dec 11 (Reuters) – Canadian department store operator Hudson’s Bay Co reported a lower-than-expected adjusted quarterly profit due to higher expenses, but same-store sales at its Lord & Taylor chain in the United States returned to growth.

Same-store sales at the Lord & Taylor chain rose 1.6 percent in the third quarter, the first growth in four quarters.

The company’s net loss widened to C$124.2 million, or C$1.04 per share, in the quarter ended Nov. 2 from C$14.4 million, or 14 Canadian cents per share, a year earlier, hurt mainly by the cost of buying U.S. retailer Saks Inc.

Excluding acquisition-related and restructuring costs, Hudson’s Bay earned C$8.9 million, or 7 Canadian cents per share. Analysts on average had expected 10 Canadian cents per share, according to Thomson Reuters I/B/E/S.

Consolidated sales rose 6 percent to C$984.1 million ($927 million).

Hudson’s Bay forecast sales of C$1.37 billion to C$1.41 billion for the fourth quarter, excluding Saks.

Comparable-store sales at the company’s Hudson’s Bay stores increased 6.4 percent in the third quarter.

The company’s finance costs more than quadrupled to $134.2 million, primarily due to the Saks acquisition.

Hudson’s Bay completed its $2.4 billion acquisition of Saks last month.

Hudson’s Bay shares have risen about 17 percent since the company reported higher second-quarter sales in September.

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