Hudson’s Bay Company
What a difference three months makes: following a 2 percent increase in comparable store sales in the fourth quarter at Saks Off 5th, parent Hudson’s Bay Company (HBC) posted a 4.1% decline in comps in its off-price business in the first quarter. The department store operator said the drop in HBC Off Price (which also includes the Find @ Lord & Taylor and Gilt banners) was due to a “substantial reduction in overall promotional activity” at Saks Off 5th. Consolidated retail sales jumped 59.4% to 3.3 billion Canadian dollars ($2.6 billion), primarily as a result of recent acquisitions, as well as a 4.4% increase in comps. However, HBC also widened its loss from 49 million Canadian dollars ($38.4 million) to 97 million Canadian dollars ($75.97 million).
Profits fell from $3.6 million to $2.6 million in the first quarter of fiscal 2017 for Cherokee Global Brands (CHKE). The Sherman Oaks, California-based company, whose portfolio includes Liz Lange and Tony Hawk as well as retail and e-commerce partnerships with the likes of Target and Kohl’s, reported a 4.4% increase in revenues from $10.2 million to $10.7 million. That rise was attributed mainly to the October 2015 acquisition of Flip Flop Shops, in addition to a 3 percent increase in worldwide Cherokee brand royalties.
Tailored Brands (TLRD), the menswear company formerly known as Men’s Wearhouse, had a worse-than-expected first quarter that resulted in a net sales decline of 6.4%. Same-store sales at Jos. A Bank tanked 16 percent in the three months ended Apr. 30 due to a decrease in average transactions per store. Men’s Wearhouse reported a 3.2% drop in sales and a 3.5% decline in comps. K&G, the company’s discount chain for brand-name apparel, fared slightly better thanks to an increase in the average basket size. But this was offset by lower transactions per store, meaning comparable sales inched up by only 0.2%.