Largest retailer Hudson's Bay Company (Hbc) announced results for the three months ended July 31, 2005. Net loss improved to $8 million from $15 million in the second quarter of 2004, and the loss per share improved in the second quarter this year to $0.12 as compared to $0.22 for the same period last year, primarily the result of a favourable income tax reassessment and the related interest income. The Company recorded a loss before interest and income taxes (EBIT) of $13 million for the second quarter compared to a loss of $10 million in the previous year.
Sales and revenue for the second quarter of 2005 was $1,602 million compared to $1,627 million in the same period last year. Zellers experienced a comparable store sales increase of 0.7 percent, the second consecutive quarter of positive comparable store sales. The Bay's (excluding Home Outfitters) comparable store sales decline of 3.9 percent was negatively impacted by ongoing issues related to the implementation of a new operating system in major home fashions (the Bay experienced a comparable store sales decline of 0.8 percent excluding this impact).
The impact of this issue is subsiding and the system required to support the Company's Big Ticket growth initiatives has stabilized.
Costs for the quarter were below last year and planned levels. The Company exited the quarter with inventories on plan and slightly above last year.
George Heller, President and Chief Executive Officer of Hudson's Bay Company: “Although an improvement on trend from first quarter, company sales performance this quarter is still not at the level they know and can achieve. They enter the back half of the year with many more of their new merchandise programs now in place that have shown early success; coupled with their extensive store upgrade program for the year substantially completed, they are positive about the prospects for the balance of the year.”
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