Hudson’s Bay Sees Margins Drop on Discounting at Bay, Saks Fifth
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Hudson’s Bay Co. fell after reporting a weak sales quarter and a drop in gross margins, blamed in part on a “hyper-promotional environment” that extended to luxury goods at its Saks Fifth Avenue stores.
Comparable store sales, a closely watched metric for the industry, fell 0.4%, the Toronto-based retailer said in a statement Thursday. Sales rose 0.6% at Saks, the slowest pace in at least eight quarters for the unit that’s lately been the company’s lone bright spot. Margins dropped by 530 basis points.