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Hudson's Bay reports larger Q3 loss, due to costs associated with Saks' purchase

The Canadian Press

TORONTO - Hudson's Bay Co. (TSX:HBC) reported a larger net loss in its latest quarter, mostly due to costs mostly related to its acquisition of Saks Inc. last month, and despite seeing strong sales across various departments and over e-commerce,

The national retailer reported a net loss of $124.2 million, or $1.04 per share for the period ended Nov. 2, compared with $14.4 million, or 14 cents per share, a year earlier.

Excluding acquisition-related and restructuring costs, its "normalized'' net earnings from continuing operations rose to $8.9 million or seven cents per share for the 13-week period, compared with a loss of $300,000 or zero cents per share in the third quarter of 2012.

Overall retail sales rose by 5.8 per cent to $984.1 million versus $930.4 million year-over-year. While consolidated same-store sales jumped 5.7 per cent, with those under the Hudson's Bay banner climbing 6.4 per cent and those at its recently-acquired Lord & Taylor stores increasing by 1.6 per cent.

HBC noted that it saw a significant jump in sales at its locations that were recently renovated. For instance, it said its Vancouver flagship store reported sales were up 30 per cent following a major renovation last year. Also, sales at its e-commerce business more than doubled during the 13-week period, compared to a year ago.

The Toronto-based company completed its acquisition of luxury U.S. retailer Saks last month for $2.9 billion including debt.