Stronger digital and same-store sales helped Hudson’s Bay Co. (HBC) post a higher profit in the fourth quarter.
On Tuesday, the Toronto-based department store operator, which bought Saks Fifth Avenue in July, 2013, reported a net profit from continuing operations of 111 million Canadian dollars ($88.9 million), up from CA$37 million ($29.6 million) the previous year.
Consolidated sales climbed 9.3% in Q4 to hit CA$2.63 billion ($2.1 billion). Same-store sales at the company’s 322 retail banners — Hudson’s Bay and Home Outfitters in Canada and Lord & Taylor, Saks Fifth Avenue and Off 5th in the U.S.— were up 3.2%, including a 2.6% growth at Saks Fifth Avenue and a 12.1% jump at the discount Off 5th chain, spurred by sales of menswear and women’s shoes.
Digital sales, meanwhile, skyrocketed 35.1% to CA$304 million ($243 million).
“Sales growth, further progress with the Saks integration and continued strength at HBC Digital has us well positioned to deliver on our fiscal 2015 strategic priorities and initiatives,” said Richard Baker, HBC’s governor and executive chairman.
HBC intends to invest an incremental CA$50 million ($40 million) in strategic growth initiatives in the current fiscal year, including an accelerated pace of new store openings at Off 5th, strengthening its digital and omnichannel efforts and openings Saks and Off 5th stores in Canada.
The news follows last week’s departure of Saks Fifth Avenue’s president, Marigay McKee, after a mere 15 months “based on mutual agreement with the company,” as per a statement released Thursday. Her replacement is Marc Metrick, HBC’s executive vice president and chief administrative officer.