Executive Summary

• Hudson’s Bay Company reported 4Q15 normalized diluted EPS of C$0.79. EBITDA in the quarter was C$455.0 million versus consensus of C$441.8 million.
• Total revenues were C$4.5 billion versus consensus of C$4.3 billion. Year over year, revenues increased by 70.4%, driven by the acquisition of GALERIA. On a constant-currency basis, comps were up 1.8%, as previously reported.
• Sales growth in the department store segment was driven by women’s and home. Categories of strength at Saks Fifth Avenue included menswear and cosmetics, while women’s ready to wear showed weakness. At Saks Off 5th, accessories and footwear drove growth. At HBC Europe, beauty and accessories led sales growth.