The Four Quarter Of Hudson Bay Will Be Re Adjusted To Focus On More High-End Brands.

Canada's Hudson 's Bay Co. (TSE:HBC) Hudson Bay Group, which has multiple high-end brands in North America and Europe, released its four quarter and full year results on Tuesday. Due to the impairment of goodwill in the 116 million Canadian dollar of discount business Saks OFF 5TH and Gilt, the group changed from profit to loss in the fourth quarter, from 152 million yuan to 370 million yuan in the same period last year, plus a loss of 83 million yuan per share.

By the fourth quarter of fiscal year 2016 in January 28, 2017, Hudson Bay Group recorded 4 billion 600 million Canadian dollars, and 4 billion 486 million Canadian dollars in the fourth quarter of fiscal year 2015 had a 2.5% increase, higher than the Thomson Reuters I/B/E/S expected 4 billion 480 million Canadian dollars.

Sales growth came mainly from the acquisition of Gilt, the fourth quarter income of 177 million Canadian dollars, while high-end department stores Saks Fifth Avenue and the same name brand discount business Saks OFF 5TH total 37 new stores in the fourth quarter sales of 123 million Canadian dollars.

The group said that Gilt business was mainly subject to the drop in traffic, while Saks OFF 5TH reduced the average selling price because of the introduction of modern brands in the past fiscal year. The group will re focus on the more high-end brands.

In the fourth quarter, the Hudson Bay Group same store sales recorded a 1.2% decrease. The DSG sector (including Hudson 's Bay, Lord&Taylor and Home Outfitters) registered a 0.6% increase in fixed exchange rate, while Saks Fifth Avenue same store sales increased 0.1%, while the European sector (with GALERIA, s and s) fell 2%.

Electricity providers, the fourth quarter still has a high double-digit growth rate of 52.8%, of which the electricity business with fixed store sales fixed exchange rate increased by 13.3%, excluding Gilt business, e-commerce channel sales growth in the same store up to 20.9%.

Jerry Storch, chief executive of the Hudson Bay Group, said that 2016 was a disruptive year for retail. Although the department store industry was still full of challenges, the group acted decisively and took tough decisions (layoffs) to ensure sustained profitability.

When initial results were released at the end of February, the group said it would streamline enterprise functions and management costs in North America and expects to reduce the cost of $75 million in fiscal year 2017, but the scheme would generate 30 million yuan in severance payments.

During the fourth quarter, the Hudson Bay Group adjusted EBITDA to 404 million Canadian dollars, down 11.2% from the 455 million Canadian dollar in the 2015 quarter of fiscal year, but it was better than the market expected $385 million. In the 2016 fiscal year, the group adjusted EBITDA 636 million yuan, which was 18.6% lower than the 781 million Canadian dollar in the fourth quarter of 2015.

In the 2016 fiscal year ended January 28th, the Hudson Bay Group operates 480 stores, including 90 Hudson's Bay, 50 Lord&Taylor, 41 Saks Fifth Avenue, 117 Saks OFF 5TH, 53 Home Outfitters, and 129 129 stores, and 14 billion 455 million annual sales of 14 billion 455 million yuan, a 29.5% increase over the 2015 11 billion 162 million yuan, but the growth comes mainly from acquisitions, as well as between the kickoff and the new store.

In the 2016 fiscal year, the group lost a net loss of 516 million Canadian dollars, while its net profit in 2015 was 387 million Canadian dollars.

The Hudson Bay Group's shares closed down 9.70 Canadian dollars on Tuesday, down 2.41% and Monday's crash. The company's stock price plunged 10.3% in two trading days this week.