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Hudson's Bay swings to net profit in Q3; revenue up on higher store, Internet sales

TORONTO – Hudson’s Bay Company (TSX:HBC) says it swung to a profit in the third quarter as the operator of the Bay, Lord & Taylor and Saks Fifth Avenue stores among others reported an increase in both in-store and e-commerce sales.

In a report issued after markets closed, the company said net earnings in the most recent period were $1 million, compared with a net loss of $13 million in the comparable year-earlier period.

Consolidated sales growth was 34.1 per cent at $2.566 billion, up $653 million from $1.913 billion in the prior-year period.

Same-store sales growth rose 12.9 per cent, or two per cent on a constant currency basis, it said.

Digital sales increased of 36.3 per cent, or 23.9 per cent on a constant currency basis.

During the quarter, HBC closed its acquisition of the Kaufhof Group, which has most of its stores in Germany.

HBC executive chairman Richard Baker said that with the addition of HBC Europe during the quarter, “we now generate the majority of our sales outside the U.S., and have a significant European retail platform from which we can explore additional growth opportunities.”