Published: Thu, June 07, 2018
Money | By Ralph Mccoy

Lord & Taylor to close famed flagship store on Fifth Avenue in NYC

Lord & Taylor to close famed flagship store on Fifth Avenue in NYC

After years of resisting significant store closures, Hudson's Bay Co.is now preparing to shut up to 10 of its U.S. Lord & Taylor outlets, including its iconic flagship on Fifth Avenue in NY, while selling its Gilt online division, amid disappointing first-quarter results.

Hudson's Bay posted a net loss of $314 million Canadian dollars (roughly $243 million US dollars) in its first quarter ending May 5 compared with the same period in 2017, according to its earnings results. The one bright spot at the retailer was the Saks Fifth Avenue luxury chain, where comps increased 6% in Q1, marking the 31st quarter of positive comps, according to the retailer. The deal with WeWork to sell the L&T flagship property was announced in October and at that time HBC indicated it would maintain a smaller L&T presence at the site, on Fifth Avenue between 38th and 39th Streets.

"We still have a lot of work to do but we're committed to making the right business decisions to turn our results around", Ms. Foulkes said on Tuesday after the department-store retailer released first-quarter results that missed analysts' expectations.

Revenue totalled almost $3.09 billion, up from almost $3.06 billion a year ago.

Boston-based e-commerce operator Rue La La, which is owned by billionaire Michael Rubin's Kynetic, said late on Monday it had agreed to buy Gilt, which Hudson's Bay acquired in January 2016 for $250 million.

However, its performance on the continent has been lacklustre, with comparable sales at HBC Europe falling for several quarters.

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This constituted a violation of Article 62 and 63 of Pakistan's Constitution, she was quoted as saying by the Pakistani media. Reham, on the other hand, has refused to confirm or deny the contents of her book.

Now, she is starting to put her stamp on HBC, having appointed some new executives - including former CVS managers - and sending a strong signal that she is ready to make big, bold moves at HBC to revive its struggling business.

The company is also looking to explore opportunities to leverage its real estate portfolio, Baker said.

By brand, Saks Fith Avenue comparable sales increased by 6 percent; DSG (Hudson's Bay, Lord & Taylor and Home Outfitters) comparable sales decrease of 0.6 percent; Saks Off 5th comparable sales decrease of 3.5 percent; and HBC Europe (Galeria Kaufhof and Galeria INNO) comparable sales decrease of 6.6 percent.

With 48 stores in the U.S. - mostly in the Northeast - Lord & Taylor is leaning heavily on its new partnership with Walmart.com, with which it launched a dedicated website last week. "Everything is on the table in terms of focusing on driving improved profitability for the business ..." Net loss for the period widened to 400 million Canadian dollars (308 million dollars) compared to 221 million Canadian dollars (170 million dollars) previous year.

"We need to improve across all areas of the business, and this begins with rededicating ourselves to putting the customer first in everything we do". Absent these charges, the company said, gross profit as a percentage of sales would have improved 90 basis points. In Europe, we have de-layered management, allowing me to be closer to that business as we take actions that are expected to stabilize the topline and improve our cost structure in this important market.

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