Hudson's Bay Company (HBC.TO) said on Thursday it would cut about 2,000 jobs across North America in a major restructuring effort as it reported a wider-than-expected first-quarter loss.
To realize cost savings in addition to the layoffs, HBC said it will streamline and restructure operations in merchandise buying and planning, marketing and IT, integrate its digital functions throughout the company and use its scale to optimize procurement.
The company said it expects more than $350 million in annual savings when the reorganization plan is fully in place by the end of its 2018 fiscal year. HBC said moves needed to secure $125 million in savings are in place as of today.
"We know we can do better and we are taking bold decisive action", CEO Jerry Storch said in a statement. The company's stable of retail banners includes Hudson's Bay, Saks Fifth Avenue, Home Outfitters and Lord & Taylor.
The "Transformation Plan" will also create two distinct leadership teams, focused separately on Lord & Taylor and Hudson's Bay. "Our Transformation Plan, the result of our six-month operational review in North America, is created to realign the company and position HBC as the retailer of the future".
James Comey, Under Oath, Admits to Leaking Trump/Flynn Memos Himself
So did Comey violate any law or privilege by releasing the memo recounting his conversations with Trump? "I don't know . He described his response as a "slightly cowardly way" of telling Trump he would not drop the investigation.
He adds other companies have had a smoother transition to online shopping.
Gilt, which mostly sells its wares online, "accounted for an outsized portion" of the sector's declining comparable sales, the company said.
The job cuts come on the heels of HBC's first-quarter earnings, which showed a net loss of $221 million, more than twice the $97 million loss it had in the same period past year.
Retail sales totalled C$3.2 billion, down 3 percent from a year ago, below the average analyst forecast of C$3.26 billion. Alison Coville, a almost two-decade veteran of the company, will run Hudson's Bay. Liz Rodbell, who had previously run both chains as president for five years, remains president of Lord & Taylor. In Europe, it has Galeria Kaufhof, Germany's largest department store group, and Belgium's Galeria INNO.
Before the announcement, shares in HBC closed down 11 cents, or 1.13 per cent, to $9.62 on 318,378 shares.
Comments