Hudson’s Bay Company (TSX: HBC) 2Q19 Results: Secures 25% Equity Stake in Le Tote Joint Venture, Cuts Store Portfolio 25%

Executive Summary

• Hudson’s Bay Company (HBC) reported 2Q19 revenues of C$1.85 billion, down 0.5% year over year and below the consensus estimate of C$2.13 billion. The company reported adjusted 2Q19 EBITDA of C$52 million, down 50.9% from the year-ago period.
• For the quarter, comparable sales were down 0.4%. By banner, Saks Fifth Avenue comps were up 0.6%, Hudson’s Bay comps decreased 3.4%, and comparable sales at Saks OFF 5TH increased 3.4%.
• The company did not offer 3Q19 or full year guidance.