HBC (HBC.CN) 2Q16 RESULTS: CHALLENGING ENVIRONMENT WEIGHS ON OUTLOOK

Executive Summary

• Hudson’s Bay Company (HBC) reported 2Q16 adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of C$81million versus consensus of C$50.6 million. Adjusted earnings before interest, taxes, depreciation, amortization and rent costs (EBITDAR) was C$263 million and above expectations of C$256 million.
• Total revenue was C$3.25 billion versus expectations of C$3.27 billion.
• The company currently expects sales, adjusted EBITDAR and adjusted EBITDA to trend toward the bottom end of its outlook range.