Hudson’s Bay Co. mirrored the challenges confronting the department store industry as it swung to a loss in its fourth quarter and said it would cut costs and capital spending.
HBC reported a loss of C$152-million in the quarter, compared with a profit of C$370 million in the year-ago period. The company took a C$116-million write-down in the quarter tied to its struggling Saks Off 5th and Gilt.com operations. Gilt sales continue to be impacted by lower traffic, HBC said, while Saks Off 5th has experienced lower sales, driven in part by the decision to introduce more moderately priced apparel last year.
