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Sept 30 (Reuters) - Hudson's Bay Co HBC.TO said it expects
sales and earnings for the fiscal years ending in January 2016
and 2017 to "increase significantly" following cost cuts and
acquisition of the German department store chain Galeria
Kaufhof.
The Canadian department store operator raised its sales
forecast for the current fiscal year to a range of C$11 billion
to C$11.5 billion ($8.2 billion to $8.6 billion) from C$9
billion to C$9.3 billion.
The company on Tuesday revealed plans to cut 265 corporate
jobs and reduce costs by C$75 million, as it streamlines its
North American operations.
Hudson's Bay, which also expects to gain from opening of new
stores in North America including Saks and Saks Off 5th in
Canada, forecast sales of C$14.5 billion to C$15.5 billion for
fiscal 2016.
The company now expects adjusted earnings before interest,
tax, depreciation and amortization (EBITDA) to rise to C$850
million to C$925 million for the current fiscal year, from C$612
million for the fiscal year ended January 2015.
The company also expects adjusted EBITDA to rise to the
range of C$950 million to C$1.1 billion for fiscal 2016.
Hudson's Bay closed the previously announced 2.8 billion
euros deal to buy the Kaufhof chain on Wednesday.
The Canadian store operator's shares rose as much as 10.4
percent to C$22.88 on Wednesday on the Toronto Stock Exchange.
The stock had fallen 15.6 percent this year.
(1 US dollar = 1.3411 Canadian dollar)