Hudson’s Bay Falls to Record Low as Weather Drags
Hudson’s Bay Co. (HBC), Canada’s oldest company, fell to its lowest since it went public in November after the company said “unusual weather patterns” led to lower than expected results in the first quarter.
The retailer dropped 1.7 percent to C$14.50 a share at 10:57 a.m. today in Toronto, where the company is based. Earlier it fell 5.1 percent to C$14.00, the lowest since it began trading on November 21.
“While we are pleased with how our initiatives are progressing, there have been challenges,” Chief Executive Officer Richard Baker said in a statement. “During the first quarter of this fiscal year, unusual weather patterns have led to weaker that anticipated results, particularly at Lord & Taylor.”
Hudson’s Bay said sales were affected earlier in the year by Hurricane Sandy which forced it to temporarily close the majority of its Lord & Taylor stores. Same-store sales at its U.S. department stores declined 2.9 percent for the 14-week period ended Feb.2, 2013.
HBC reported earnings of 86 cents a share, adjusted for certain items, more than the 85 cent average estimate of eight analysts surveyed by Bloomberg News. Sales of C$1.39 billion, beat the C$1.36 billion estimate in the survey.
The company sees annual sales growth of 1.5 percent to 3.5 percent in 2013.
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