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Saks owner Hudson's Bay to cut 2,000 jobs, reports loss

Published 2017-06-08, 04:34 p/m
© Reuters.  Saks owner Hudson's Bay to cut 2,000 jobs, reports loss
HBC
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(Adds details on results, comment from CEO)

By Solarina Ho

TORONTO, June 8 (Reuters) - Saks Fifth Avenue owner Hudson's Bay Co HBC.TO said on Thursday it will cut about 2,000 jobs across North America in a major restructuring and reported a wider-than-expected first quarter loss and steeper-than-expected drop in retail sales.

The Canadian department store operator said the move will help the company save more than C$350 million ($259 million)annually.

"We know we can do better and we are taking bold decisive action," Chief Executive Jerry Storch said in a statement.

Department stores across North America have felt the brunt of changing consumer habits, in particular, a shift toward online shopping.

Hudson's Bay reported a loss of C$221 million, or C$1.21 per share, in the quarter ended April 29. The loss was wider than the average analyst forecast of 76 cents.

Retail sales totalled C$3.2 billion, down 3 percent from a year ago, below the average analyst forecast of C$3.26 billion. ($1 = 1.3501 Canadian dollars)

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