Hudson’s Bay Company announces the appointment of Dr. Wolfgang Link as CEO of HBC Europe

Dr. Link to establish and drive European strategy including direction of HBC’s €1 billion capital commitment in Germany

TORONTO & NEW YORK & COLOGNE, Germany, 2017-Apr-07 — /EPR Retail News/ — Hudson’s Bay Company (TSX: HBC) today (April 6, 2017) announced the appointment of Dr. Wolfgang Link as Chief Executive Officer of HBC Europe, effective May 1, 2017. Dr. Link will lead the company’s expansion and growth strategy for the European business including Galeria Kaufhof, Galeria Inno, and the entrance of Hudson’s Bay and Saks OFF 5TH. Reporting to HBC’s Chief Executive Officer, Jerry Storch, Dr. Link will oversee the European management team.

Jerry Storch, HBC’s CEO, stated: “We are pleased to welcome Wolfgang to the HBC family during this new phase of development for our European business, as we prepare to launch two new banners in the region. Wolfgang is an accomplished leader with a proven track record in the retail sector in Germany and throughout Europe. His experience in both digital and traditional channels and profound knowledge of the European market were key in selecting him for this role, and will help foster the expansion and success of HBC Europe, including our significant investment in Germany.”

Richard Baker, Governor and Executive Chairman of HBC, said: “We are committed to our long term strategy in Europe and to the €1 billion capital investment over five to seven years in Germany that we previously announced. Building on the excellent market position of Galeria Kaufhof in Germany and of Galeria Inno in Belgium, we have laid the foundation for expansion in the region. I am pleased to welcome Dr. Wolfgang Link to take our HBC Europe business to the next level.”

Dr. Wolfgang Link commented: “It is an honor for me to join HBC, a proven global leader known for best-in-class retail with exceptional banners. Among Germans, Galeria Kaufhof is the epitome of a great department store, and the same is true in Belgium of Galeria Inno. With the introduction of Saks OFF 5TH in Germany, and both Hudson’s Bay and Saks OFF 5TH in the Netherlands, exciting steps are ahead of us. I look forward to working with the strong HBC Europe management team.”

Dr. Link will join HBC after a decade with Toys”R”Us, where he served as a member of the global executive board and President of Toys”R”Us Europe since 2013. In that role, he was responsible for the company’s business operations in nine countries, including Germany, France, Spain the UK and the Netherlands, with more than 300 stores across Europe as well as country-specific online stores. Before joining Toys”R”Us in 2007 as President, Central Europe, Dr. Link served as Managing Director for the MEDIMAX specialist stores and ElectronicPartner Group Holdings, where he was responsible for the operation of more than 200 specialty stores in Germany, Hungary and Turkey. In addition, Dr. Link served many years in a variety of leadership roles at the METRO Cash and Carry Group, in corporate headquarters in Dusseldorf and in the country business units in Austria and Spain.

Don Watros, President of HBC International, will remain head of the Galeria Kaufhof Supervisory Board and will continue to pursue international opportunities in addition to supporting the company’s North American integration and cost saving initiatives.

Olivier Van den Bossche will be leaving HBC Europe at the end of April to pursue other opportunities.

“We appreciate Olivier’s work to build HBC’s presence in Europe and support the integration of Galeria Kaufhof and Galeria INNO to our business. In addition, he has helped lay the foundation for Hudson’s Bay and Saks OFF 5TH to enter Europe. We wish him the best in his next endeavor,” said Don Watros.

“I have enjoyed working with Olivier both professionally and personally. He is an excellent retailer who has made an indelible mark on our business,” said Jerry Storch.

About Hudson’s Bay Company

Hudson’s Bay Company is one of the fastest-growing department store retailers in the world, based on its successful formula of growing through acquisitions, driving the performance of high quality stores and their all-channel offerings and unlocking the value of real estate holdings. Founded in 1670, HBC is the oldest company in North America. HBC’s portfolio today includes ten banners, in formats ranging from luxury to premium department stores to off price fashion shopping destinations, with more than 480 stores and 66,000 employees around the world.

In North America, HBC’s leading banners include Hudson’s Bay, Lord & Taylor, Saks Fifth Avenue, Gilt, and Saks OFF 5TH, along with Home Outfitters. In Europe, its banners include GALERIA Kaufhof, the largest department store group in Germany, Belgium’s only department store group Galeria INNO, as well as Sportarena.

HBC has significant investments in real estate joint ventures. It has partnered with Simon Property Group Inc. in the HBS Global Properties Joint Venture, which owns properties in the United States and Germany. In Canada, it has partnered with RioCan Real Estate Investment Trust in the RioCan-HBC Joint Venture.

MEDIA CONTACT:
Hudson’s Bay Company
Andrew Blecher
212-391-3179
Andrew.blecher@hbc.com

Hudson’s Bay Company
Jen Vargas
646-634-6863
Jen.Vargas@hbc.com

FOR THE GERMAN MEDIA:
HBC Europe / GALERIA Kaufhof
Steffen Kern
+49 221 2235595
presse@kaufhof.de

Hering Schuppener Consulting
Dirk von Manikowsky
+49 211 430 79-265
hbc@heringschuppener.com

Source: Hudson’s Bay Company

Hudson’s Bay Company announces 2.5% retail sales increase to $4.6 billion in 4Q Fiscal 2016

  • Fourth Quarter retail sales increased 2.5% to $4.6 billion
  • Fourth Quarter comparable digital sales increased 13.3% on a constant currency basis, up 20.9% at HBC’s department store banners
  • Fourth Quarter Adjusted EBITDAR of $564 million and Adjusted EBITDA of $404 million
  • Full year Adjusted EBITDAR and Adjusted EBITDA consistent with recent guidance
  • Fourth Quarter net loss of $152 million, which includes a one-time non-cash goodwill impairment charge of $116 million; Prior year quarter included $333 million in net gains related to the sale of investments in joint ventures, which contributed to net earnings of $370 million in that period
  • $75 million in annualized savings expected from initiative announced as part of the Company’s ongoing comprehensive operational review

TORONTO & NEW YORK & COLOGNE, Germany, 2017-Apr-06 — /EPR Retail News/ — Hudson’s Bay Company (“HBC” or the “Company”) (TSX: HBC) today (April 4, 2017) announced its fourth quarter financial results for the thirteen and fifty-two week periods ended January 28, 2017. Unless otherwise indicated, all amounts are expressed in Canadian dollars. Certain metrics, including those expressed on an adjusted, normalized, comparable and/or constant currency basis, are non-IFRS financial measures (for more information please refer to the “Supplemental Information” section of this press release and the reconciliation tables further below).

“In 2016 we took important steps to position all of our businesses for industry leadership. Our team remains focused on our all-channel model, anticipating our customers’ evolving needs and adapting to our customers’ expectations both in store and online. We executed on the organic growth of our existing store base and substantially increased our investment in digital. I am very proud of the hard work and dedication of all of our associates, who continue to focus on what matters most: our customers. We believe our winning model of combining world class real estate assets, which are less impacted by short-term trends, with our diverse retail businesses will continue to provide value for the Company and our shareholders.” stated Richard Baker, HBC’s Governor and Executive Chairman.

Jerry Storch, HBC’s Chief Executive Officer, added, “The past year was a disruptive one for the retail industry. While the department store sector remains challenging, we are taking decisive action and making the tough decisions to ensure continued performance should the current environment persist. We are cutting expenses, rationalizing and reallocating our capital spending, strengthening our balance sheet, and taking other necessary actions. Rest assured, as we remain focused on the continued growth of our Company, we are aggressively positioning HBC to adapt to the changing retail environment.”

Key actions:

  • Cutting expenses: Recently announced efficiency measures are expected to save $75 million on an annualized basis, and management continues to work diligently to reduce overhead further and generate additional savings while continuing to focus on our customers. HBC is currently engaged in a cross-banner review of productivity enhancements designed to make improvements in the Company’s operating model and to optimizing in-store operations, and expects to provide additional details on the progress of these initiatives in due course.
  • Rationalizing and reallocating capital spend: Net capital investments in Fiscal 2017 are expected to be between $450 million and $550 million, approximately $150 million less than Fiscal 2016. The Company’s capital investments in Fiscal 2017 will focus on in-progress and expected high-return projects, including growth in Europe and ongoing renovation programs across the world.
  • Strengthening the balance sheet: HBC took advantage of favourable lending conditions during the year to refinance its mortgage on the Lord & Taylor flagship and reduce the interest rate on its term loan. The Company ended the year with approximately the same amount of total debt on its balance sheet as at the beginning of Fiscal 2016.
  • Other actions: As part of the ongoing review of the businesses, the Company took the necessary step of writing down the goodwill associated with HBC’s Off Price business, though management still believes that both Saks OFF 5TH and Gilt have strong strategies in place with potential to generate long term profitable growth. In addition to focusing on a more elevated merchandise mix at Saks OFF 5TH, the Company expects to combine the inventory at Saks OFF 5TH and Gilt by the end of the year, allowing Saks OFF 5TH merchandise to be sold online through Gilt. At Hudson’s Bay and Lord & Taylor, the Company is growing key product categories such as active, dress and home. Initiatives in Europe include new brand additions and merchandising improvements at GALERIA Kaufhof, as well as the introduction of Saks OFF 5TH and Hudson’s Bay. Finally, Saks Fifth Avenue is expected to benefit from ongoing growth of digital and the introduction of buy online pickup in store later in the fall.

Fourth Quarter Summary

All comparative figures below are for the thirteen week period ended January 28, 2017 compared to the thirteen week period ended January 30, 2016. DSG refers, collectively, to the Lord & Taylor, Hudson’s Bay and Home Outfitters banners. HBC Europe refers, collectively, to the GALERIA Kaufhof, Galeria INNO and Sportarenabanners. HBC Off Price refers, collectively, to the Saks Fifth Avenue OFF 5TH (“Saks OFF 5TH”) and Gilt banners.

HBC has now anniversaried the acquisition of HBC Europe, as well as the formation of the real estate joint ventures. Accordingly, reported results for the fourth quarter are largely comparable to the previous year, excluding the impact of the Gilt acquisition which closed on February 1, 2016, the beginning of Fiscal 2016.

Retail sales were $4,600 million, an increase of $114 million, or 2.5%, from the prior year. The increase was primarily driven by the addition of Gilt, which generated $177 million in sales during the quarter, as well as the addition of five Saks Fifth Avenue and 32 Saks OFF 5TH stores, which contributed a total of $123 million in sales during the quarter. These additions were partially offset by the combination of a negative $110 million foreign exchange impact on the translation of U.S. dollar and Euro denominated sales and lower comparable sales of approximately $42 million at the Company as a whole.

On a constant currency basis, comparable sales grew by 0.6% at DSG and 0.1% at Saks Fifth Avenue, offset by declines of 2.0% at HBC Europe and 5.9% at HBC Off Price, resulting in an overall consolidated comparable sales decline of 1.2%. Comparable sales during the quarter were impacted by a highly promotional environment across HBC’s markets. Additionally, sales at Gilt continue to be impacted by lower traffic, while Saks OFF 5TH has experienced lower sales driven in part by the decision to introduce more moderately priced apparel during Fiscal 2016. Saks OFF 5TH is in the process of re-merchandising its product mix to have a higher concentration of products at the top end of its offering range, which is expected to drive increased traffic and conversion as well as a higher overall basket size. This updated product mix is expected to be fully implemented by the third quarter of Fiscal 2017.

Digital sales increased by 52.8% from the prior year, and comparable digital sales on a constant currency basis increased by 13.3%. Excluding Gilt, comparable digital sales on a constant currency basis increased by 20.9%, reflecting the Company’s continued strategic focus on growing this channel.

For HBC overall, gross profit1 as a percentage of retail sales was 40.2%, which improved by 50 basis points compared to the prior year. After adjusting for the $69 million impact associated with the amortization of inventory related purchase accounting adjustments in the prior year, gross profit as a percentage of retail sales declined by 110 basis points. Reduced gross profit rates were the result of lower gross margins realized in the majority of HBC banners, largely driven by the highly promotional environment experienced during the quarter.

SG&A expenses were $1,669 million compared to $1,499 million in the prior year. The increase is primarily attributable to non-cash impairment charges of $150 million and the addition of Gilt, which added $77 million in SG&A during the quarter, as well as a reduction in the Company’s ownership in its real estate joint ventures, which resulted in a $10 million increase in net rent expense. Moreover, the shift to digital sales from traditional in-store sales during the quarter further contributed to higher SG&A expenses as a result of higher fulfillment costs. Profit margins on digital sales are expected to improve over time, as the Company continues to invest in its digital supply chain, reduces expenses related to its digital operations and introduces store centric all-channel delivery options.

These SG&A expense increases were partially offset by a decrease in non-recurring charges of $52 million, a $43 million favourable foreign exchange impact related to the translation of U.S. dollar and Euro denominated SG&A expenses.

Fourth quarter results include a non-cash goodwill impairment charge of $116 million related to HBC Off Price. This charge was driven by recent sales weakness at Gilt and Saks OFF 5TH as described above, which resulted in management prudently lowering its future earnings expectations as compared to initial internal estimates.

Notwithstanding this charge, management continues to believe that both Saks OFF 5TH and Gilt have strong strategies in place with the potential to generate long term profitable growth for the Company. The acquisition of Gilt continues to provide HBC with best in class digital capabilities and a strong online presence with the millennial audience. The Company expects to combine the inventory at Saks OFF 5TH and Gilt by the end of the year, allowing Saks OFF 5TH merchandise to be sold online through Gilt. To improve the customer experience at HBC Off Price, the Company is working on a number of other initiatives, including: expanded brand partnerships; refocusing on higher end core offerings; and, the ongoing roll out of technology enhancements related to enhanced website navigation, personalization and delivery options.

Adjusted SG&A1 expenses were $1,442 million or 31.3% of retail sales, compared to $1,372 million or 30.6% in the prior year. The increase in SG&A expenses is primarily attributable to the addition of Gilt, the reduction in the Company’s ownership in its real estate joint ventures, and the shift of in-store sales to online sales as described above. Partially offsetting this increase was a favourable foreign exchange impact of $38 million related to the translation of U.S. dollar and Euro-denominated SG&A expenses. These factors, combined with the impacts associated with lower than expected comparable sales, resulted in an increased SG&A expense rate.

Adjusted EBITDAR1 was $564 million, a decrease of 9.9% compared to $626 million in the prior year. The decline in Adjusted EBITDAR1 can be primarily attributed to an increase in Adjusted SG&A1 expenses as discussed above, combined with relatively flat gross profit dollars after excluding the impacts of purchase price accounting adjustments in the prior year.

Adjusted EBITDA1 was $404 million, a decrease of $51 million compared to $455 million in the prior year. This decline is largely consistent with the decline in Adjusted EBITDAR1, offset by a smaller cash impact from the Company’s joint ventures resulting from the distribution during the quarter of excess funds that had been reserved to pay taxes in Germany. HBS Global Properties expects to begin paying cash taxes in 2018, and will set aside approximately EUR 1.5 million per month beginning in July of 2017 for future amounts owed.

Net loss was $152 million compared to net earnings of $370 million in the prior year. This loss was driven in part by the impairment charges described above which had a combined after tax impact of $136 million. Additionally, prior year earnings included net of tax gains of $333 million on the sale of investments in the joint ventures and $27 million on contribution of assets to the joint ventures. Normalized Net Earnings1 were $2 million compared to $145 million in the prior year. This decrease is primarily a result of higher Adjusted SG&A1, as described above, as well as increased depreciation and amortization expenses.

During the quarter the Company completed its purchase price allocation for Gilt. This included finalization of the amortization methodology related to customer lists. As a result, amortization expense in the quarter reflects a cumulative adjustment of approximately $37 million.

Finance costs were $43 million compared to $60 million in the prior year. This decrease was largely driven by a $32 million reduction in the write-off of deferred financing costs compared to the prior year, during which the Company repaid U.S. $585 million on its term loan. This reduction was partially offset by lower non-cash finance income generated from mark-to-market adjustments associated with the valuation of outstanding common share purchase warrants. Interest paid in cash was $46 million compared to $40 million in the prior year.

Note:
1 These performance metrics have been identified by the Company as Non-IFRS measures. For the relevant definitions, please refer to the “Non-IFRS Measures” section of this release.

Year-to-Date Summary

All comparative figures below are for the fifty-two week period ended January 28, 2017 compared to the fifty-two week period ended January 30, 2016.

Retail sales were $14.5 billion, an increase of 29.5% from the prior year. Approximately $3 billion of this increase is related to the addition of HBC Europe and Gilt during the year. The remainder of the increase has been driven by the opening of five Saks Fifth Avenue and 32 Saks OFF 5TH stores during the year which contributed $320 millionin sales. There was also an additional $26 million positive foreign exchange impact on the translation of U.S. dollar and Euro denominated sales. These positive sales impacts were partially offset by lower overall comparable sales of approximately $164 million.

Consolidated comparable sales at the Company decreased by 0.7%. On a constant currency basis, comparable sales grew 0.4% at DSG, offset by declines of 1.2% at HBC Europe, 2.8% at Saks Fifth Avenue, and 7.4% at HBC Off Price, resulting in an overall consolidated comparable sales decline of 1.7%. Comparable sales during the year were impacted by a highly promotional environment across HBC’s markets. Additionally, sales at Gilt continue to be under pressure, while Saks OFF 5TH has experienced lower sales driven in part by the decision to introduce more moderately priced apparel during Fiscal 2016.

Digital sales increased by 69.6% from the prior year, and comparable digital sales on a constant currency basis increased by 8.1%. Excluding Gilt, comparable digital sales on a constant currency basis increased by 16.6%.

For HBC overall, gross profit1 as a percentage of retail sales was 41.3%, an increase of 80 basis points from the prior year. This increase was primarily related to the addition of HBC Europe, which operates at relatively higher gross margin and SG&A rates. The positive impact associated with HBC Europe was offset by lower realized gross margins at the majority of HBC’s other banners.

SG&A expenses were $5,692 million compared to $4,066 million in the prior year, primarily as a result of the addition of HBC Europe and Gilt, which drove approximately $1.5 billion of this increase. Additionally, non-cash impairment charges increased by $174 million, which includes impairment on goodwill as described above, and net rent expense related to the Company’s joint ventures increased by $127 million. These increases were partially offset by gains on sale of assets of $33 million, a decline in other non-recurring expenses of $19 million, an $11 million favorable exchange rate impact related to the translation of U.S. dollar and Euro denominated SG&A expenses.

Adjusted SG&A1 expenses were $5,275 million or 36.5% of retail sales, compared to 33.9% in the prior year. This rate increase was primarily driven by the addition of HBC Europe and Gilt as discussed above, as well as lower comparable sales at the Company as a whole. The impact of net rent expense to the joint ventures was $164 millionfor the fifty-two week period ended January 28, 2017, compared to $37 million for the fifty-two week period ended January 30, 2016. Adjusting for this impact, Adjusted SG&A1 as a percentage of retail sales is 35.4% for the fifty-two week period ended January 28, 2017 compared to 33.5% for the fifty-two week period ended January 30, 2016.

Adjusted EBITDAR1 was $1,353 million, an increase of 12.8% compared to $1,200 million in the prior year, primarily as a result of the increase in gross profit dollars compared to the prior year offset by an increase in Adjusted SG&A1expenses as discussed above.

Adjusted EBITDA1 was $636 million, compared to $781 million in the prior year. The joint ventures had a $227 million impact on Adjusted EBITDA1 in Fiscal 2016, compared to a $76 million impact in the prior year. This increased joint venture impact, plus the rent expense associated with addition of HBC Europe and Gilt, drove the majority of the decline in Adjusted EBITDA1 relative to Adjusted EBITDAR1.

Net loss was $516 million compared to net earnings of $387 million in the prior year. Prior year earnings include total after tax gains of $565 million related to the joint ventures, compared to $44 million in the current year. Fiscal 2016 earnings also include after tax impairment expenses of $150 million compared to nothing in the prior year. Normalized Net Loss1 was $313 million compared to earnings of $55 million in the prior year, primarily driven by lower Adjusted EBITDA1, the non-cash goodwill impairment charge outlined above, as well as increased depreciation and amortization expense.

Finance costs were $192 million compared to $188 million in the prior year. The majority of this increase is related to higher interest expense related to the Company’s finance leases and pension and employee liabilities acquired as part of the GALERIA Kaufhof transaction, offset by a reduction in the write-off of deferred financing costs. Interest paid in cash was $173 million, a $26 million increase over the prior year.

Note:
1 These performance metrics have been identified by the Company as Non-IFRS measures. For the relevant definitions, please refer to the “Non-IFRS Measures” section of this release.

Inventory

Inventory at the end of the fourth quarter decreased by $28 million compared to the prior year. This decrease was driven by foreign exchange movements and lower overall inventory at Saks Fifth Avenue, despite the opening of new stores. These decreases were partially offset by the acquisition of Gilt and slightly higher inventories at HBC Europe, Saks OFF 5TH and DSG. The increase in inventory at Saks OFF 5TH was driven predominantly by the opening of new stores.

Store Network

During the fourth quarter, the Company opened one Saks Fifth Avenue store in Miami, Florida, as well as one Saks OFF 5TH store in Braintree, Massachusetts. The Company closed two Saks OFF 5TH stores located in Folsom, California and Kansas City, Kansas, one GALERIA Kaufhof store in Karlsruhe, Germany and three Home Outfitters stores located in Calgary, Alberta; Edmonton, Alberta and Langford, British Columbia

Capital Investments

Capital investments, net of landlord incentives, during the fourth quarter totaled $165 million, compared to $116 million in the prior year. During the quarter the Company opened one Saks OFF 5TH store and one Saks Fifth Avenue store, both in the U.S. Additionally, the Company completed the renovation of its Garden City Lord & Taylor store, began work on its Hudson’s Bay store in Quebec City, and signed an agreement to install robotic fulfillment technology in its Pottsville, Pennsylvania distribution centre. In Europe, HBC completed work on Germany’s first Top Shop store within a store concept at the GALERIA Kaufhof in Berlin, and made progress on its renovation program at its Düsseldorf and Frankfurt stores. Work also continued on the major renovation at the Saks Fifth Avenue flagship store on 5th Avenue in New York.

The Company is dedicated to prudent capital management, and given the current retail environment, is focusing its capital investment program on in-progress and expected high-return projects. HBC currently expects total capital investments in Fiscal 2017, net of landlord incentives, to be between $450 million and $550 million. Gross capital investment is expected to be between $1,025 million and $1,125 million. Of this gross amount, approximately $800 million is related to growth initiatives, with the remainder allocated towards maintenance projects. The Company remains focused on creating a best in class all-channel shopping experience, and will continue to invest in growth initiatives. This includes the Company’s expansion of its Hudson’s Bay banner into the Netherlands, the ongoing renovation of its Aachen, Düsseldorf, and Frankfurt stores in Germany, and the installation of automated fulfillment technology at the Pottsville distribution centre. Other areas of focus include store renovations in North America, the continued expansion of Saks OFF 5TH in the U.S., Canada and Germany, as well as the build out of increased all-channel capabilities both online and in-store for Fiscal 2017.

The above capital investment expectations reflect exchange rate assumptions of USD:CAD = 1:1.34 and EUR:CAD = 1:1.43. Any variation in these foreign exchange rate assumptions and/or other material assumptions and factors described in the “Forward-Looking Statements” section of this press release could impact the above outlook.

Conference Call to Discuss Results

Richard Baker, HBC’s Governor and Executive Chairman, Jerry Storch, HBC’s Chief Executive Officer, and Paul Beesley, HBC’s Chief Financial Officer, will discuss the fourth quarter financial results and other matters during a conference call on April 5, 2017 at 8:30 am EST.

The conference call will be accessible by calling the participant operator assisted toll-free dial-in number (800) 535-7056 or international dial-in number (253) 237-1145. A live webcast of the conference call will be accessible on HBC’s website at: http://investor.hbc.com/events.cfm. The audio replay also will be available via this link.

Consolidated Financial Statements and Management’s Discussion and Analysis

The Company’s consolidated financial statements for the year ended January 28, 2017 and Management’s Discussion and Analysis (“MD&A”) thereon are available under the Company’s profile on SEDAR at www.sedar.com.

Consolidated Financial Information

The following tables set out summary consolidated financial information and supplemental information for the periods indicated. The summary financial information set out below for the quarters ended January 28, 2017 and January 30, 2016 has been prepared on a basis consistent with our audited annual consolidated financial statements for Fiscal 2016 and Fiscal 2015, respectively. In the opinion of the Company’s management, such unaudited financial data reflects all adjustments, consisting of normal and recurring adjustments, necessary for a fair presentation of the results for those periods. The results of operations for interim periods are not necessarily indicative of the results to be expected for a full year or any future period. The information presented herein does not contain disclosures required by IFRS and should be read in conjunction with the Company’s audited annual consolidated financial statements for Fiscal 2016.

About Hudson’s Bay Company

Hudson’s Bay Company is one of the fastest-growing department store retailers in the world, based on its successful formula of growing through acquisitions, driving the performance of high quality stores and their all-channel offerings and unlocking the value of real estate holdings. Founded in 1670, HBC is the oldest company in North America. HBC’s portfolio today includes nine banners, in formats ranging from luxury to premium department stores to off price fashion shopping destinations, with more than 480 stores and 66,000 employees around the world.

In North America, HBC’s leading banners include Hudson’s Bay, Lord & Taylor, Saks Fifth Avenue, Gilt, and Saks OFF 5TH, along with Home Outfitters. In Europe, its banners include GALERIA Kaufhof, the largest department store group in Germany, Belgium’s only department store group Galeria INNO, as well as Sportarena.

HBC has significant investments in real estate joint ventures. It has partnered with Simon Property Group Inc. in the HBS Global Properties Joint Venture, which owns properties in the United States and Germany. In Canada, it has partnered with RioCan Real Estate Investment Trust in the RioCan-HBC Joint Venture.

Forward-Looking Statements

Certain statements made in this news release, including, but not limited to, the benefits of the Company’s model of combining world class real estate assets with diverse retail businesses, the anticipated benefits and annualized savings from the Company’s operational review and potential additional productivity enhancements, management’s belief in the potential for HBC Off Price to generate long term capital growth, the benefits and timing for combining inventory at Saks OFF 5TH and Gilt by the end of the year and other integration initiatives, the Company’s anticipated gross capital investments and capital investments, net of landlord incentives, for Fiscal 2017, and the intended use of such capital investments, including expansion into the Netherlands, ongoing store renovations and the installation of automated fulfillment technology at the Pottsville distribution centre, and other statements that are not historical facts, are forward-looking. Often but not always, forward-looking statements can be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “believe”, “estimate”, “plan”, “could”, “should”, “would”, “outlook”, “forecast”, “anticipate”, “foresee”, “continue” or the negative of these terms or variations of them or similar terminology.

Implicit in forward-looking statements in respect of capital investments, including, among others, the Company’s anticipated Fiscal 2017 total capital investments, net of landlord incentives, between $450 million and $550 million, are certain assumptions regarding, among others, the overall retail environment and currency exchange rates for Fiscal 2017. Gross capital investment is expected to be between $1,025 million and $1,125 million, of which approximately $800 million is related to growth initiatives. Specifically, the Company has assumed the following exchange rates for Fiscal 2017: USD:CAD = 1:1.34 and EUR:CAD = 1:1.43. These current assumptions, although considered reasonable by the Company at the time of preparation, may prove to be incorrect. Readers are cautioned that actual capital investments could differ materially from what is currently expected and are subject to a number of risks and uncertainties, including, among others described below, general economic, geo-political, market and business conditions, changes in foreign currency rates from those assumed, the risk of unseasonal weather patterns and the risk that the Company may not achieve overall anticipated financial performance.

Although HBC believes that the forward-looking statements in this news release are based on information and assumptions that are current, reasonable and complete, these statements are by their nature subject to a number of factors that could cause the Company’s actual results, level of activity, performance, achievements, future events or developments to differ materially from management’s expectations and plans as set forth in such forward-looking statements, including, without limitation, the following factors, many of which are beyond HBC’s control and the effects of which can be difficult to predict: ability to execute retailing growth strategies, ability to continue comparable sales growth, changing consumer preferences, marketing and advertising program success, damage to brands, dependence on vendors, ability to realize synergies and growth from strategic acquisitions, ability to make successful acquisitions and investments, successful inventory management, loss or disruption in centralized distribution centres, ability to upgrade and maintain the Company’s information systems to support the organization and protect against cyber-security threats, privacy breach, risks relating to the Company’s size and scale, loss of key personnel, ability to attract and retain qualified employees, deterioration in labour relations, ability to maintain pension plan surplus, funding requirement of Saks’ pension plan, funding requirement of the HBC Europe pension plan, limits on insurance policies, loss of intellectual property rights, insolvency risk of parties which the Company does business with or their unwillingness to perform their obligations, exposure to changes in the real estate market, successful operation of the joint ventures to allow the Company to realize the anticipated benefits, loss of flexibility with respect to properties in the joint ventures, exposure to environmental liabilities, changes in demand for current real estate assets, increased competition, change in spending of consumers including the impact of unfavourable or unstable political conditions and terrorism, international operational risks, fluctuations in the U.S.dollar, Canadian dollar, Euro and other foreign currencies, increase in raw material costs, seasonality of business, extreme weather conditions or natural disasters, ability to manage indebtedness and cash flow, risks related with increasing indebtedness, restrictions of existing credit facilities reducing flexibility, ability to maintain adequate financial processes and controls, ability to maintain dividends, ability of a small number of shareholders to influence the business, uncontrollable sale of the Company’s Common Shares by significant shareholders could affect share price, constating documents discouraging favorable takeover attempts, increase in regulatory liability, increase in product liability or recalls, increase in litigation, developments in the credit card and financial services industries, changes in accounting standards, other risks inherent to the Company’s business and/or factors beyond its control which could have a material adverse effect on the Company.

HBC cautions that the foregoing list of important factors and assumptions is not exhaustive and other factors could also adversely affect its results. For more information on the risks, uncertainties and assumptions that could cause HBC’s actual results to differ from current expectations, please refer to the “Risk Factors” section of HBC’s Annual Information Form dated April 28, 2016, as well as HBC’s other public filings, available at www.sedar.com and at www.hbc.com.

The forward-looking statements contained in this news release describe HBC’s expectations at the date of this news release and, accordingly, are subject to change after such date. Except as may be required by applicable Canadian securities laws, HBC does not undertake any obligation to update or revise any forward-looking statements contained in this news release, whether as a result of new information, future events or otherwise, except as required by applicable securities law. Readers are cautioned not to place undue reliance on these forward-looking statements.

INVESTOR RELATIONS:
Kathleen de Guzman
646-802-7070
kathleen.deguzman@hbc.com

Elliot Grundmanis
646-802-2469
elliot.grundmanis@hbc.com

MEDIA CONTACTS:
Andrew Blecher
646-802-4030
Andrew.blecher@hbc.com

Source: Hudson’s Bay Company

Hudson’s Bay Company closes amendment to its asset-based revolving credit facility to increases total capacity by $350 million

TORONTO & NEW YORK, 2017-Feb-08 — /EPR Retail News/ — Hudson’s Bay Company (“HBC” or the “Company”) (TSX: HBC) is pleased to announce the closing of an amendment to its asset-based revolving credit facility (“Global ABL”) that increases its total capacity by $350 million to a total of $2.25 billion. Of this $350 million increase, $100 million is allocated to financing the working capital requirements and other general corporate purposes of the Company’s operations in the Netherlands. All other terms remain substantially the same.

Paul Beesley, Chief Financial Officer, HBC commented, “This amendment to our Global ABL provides additional financial flexibility to HBC. Our solid capital structure is supported by long term mortgages on our 5th Avenue flagships, and we are pleased to strengthen our balance sheet even further with this amendment. As we open our first Hudson’s Bay stores in the Netherlands later this year, we will be able to rely on this facility to help finance our inventory and other working capital requirements associated with the entry into this market.”

The Global ABL allows HBC to use its inventory and accounts receivable as collateral to finance working capital requirements, capital expenditures and other general corporate purposes. The $2.25 billion facility has a maturity date of February 5, 2021 with key terms that are consistent with the initial Global ABL facility closed in February of 2016. Interest rates on this facility range between LIBOR+125 to LIBOR+175. At the end of Fiscal 2016, January 28, 2017, there was a total of $330 million outstanding borrowings on the Global ABL, as compared to $939 million at the end of the third quarter, October 29, 2016.

About Hudson’s Bay Company

Hudson’s Bay Company is one of the fastest-growing department store retailers in the world, based on its successful formula of growing through acquisitions, driving the performance of high quality stores and their all-channel offerings and unlocking the value of real estate holdings. Founded in 1670, HBC is the oldest company in North America. HBC’s portfolio today includes ten banners, in formats ranging from luxury to premium department stores to off price fashion shopping destinations, with more than 480 stores and 66,000 employees around the world.

In North America, HBC’s leading banners include Hudson’s Bay, Lord & Taylor, Saks Fifth Avenue, Gilt, and Saks OFF 5TH, along with Home Outfitters. In Europe, its banners include GALERIA Kaufhof, the largest department store group in Germany, Belgium’s only department store group Galeria INNO, as well as Sportarena.

HBC has significant investments in real estate joint ventures. It has partnered with Simon Property Group Inc. in the HBS Global Properties Joint Venture, which owns properties in the United States and Germany. In Canada, it has partnered with RioCan Real Estate Investment Trust in the RioCan-HBC Joint Venture.

Forward-Looking Statements

Certain statements made in this news release are forward-looking within the meaning of applicable securities laws, including, among others, with respect to the amended Global ABL helping, among

other things, to finance HBC’s working capital requirements, capital expenditures and other general corporate purposes as it opens its first Hudson’s Bay stores in the Netherlands, and providing additional financial flexibility and further strengthening HBC’s balance sheet. Often but not always, forward-looking statements can be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “believe”, “estimate”, “plan”, “could”, “should”, “would”, “outlook”, “forecast”, “anticipate”, “foresee”, “continue” or the negative of these terms or variations of them or similar terminology.

Although HBC believes that the forward-looking statements in this news release are based on information and assumptions that are current, reasonable and complete, these statements are by their nature subject to a number of factors that could cause actual results to differ materially from management’s expectations and plans as set forth in such forward-looking statements for a variety of reasons. Some of the factors – many of which are beyond the Company’s control and the effects of which can be difficult to predict – include, among others: ability to execute retailing growth strategies, ability to achieve comparable sales growth, changing consumer preferences, marketing and advertising program success, damage to brands, dependence on vendors, ability to realize synergies and growth from strategic acquisitions, ability to make successful acquisitions and investments, successful inventory management, and other risks inherent to the Company’s business and/or factors beyond the Company’s control which could have a material adverse effect on the Company.

HBC cautions that the foregoing list of important factors and assumptions is not exhaustive and other factors could also adversely affect its results. For more information on the risks, uncertainties and assumptions that could cause HBC’s actual results to differ from current expectations, please refer to the “Risk Factors” section of HBC’s annual information form dated April 28, 2016, as well as HBC’s other public filings, available at www.sedar.com and at www.hbc.com.

The forward-looking statements contained in this news release describe HBC’s expectations at the date of this news release and, accordingly, are subject to change after such date. Except as may be required by applicable Canadian securities laws, HBC does not undertake any obligation to update or revise any forward-looking statements contained in this news release, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on these forward-looking statements.

INVESTOR RELATIONS:
Kathleen de Guzman
646-802-7070
kathleen.deguzman@hbc.com

Elliot Grundmanis
646-802 2469
elliot.grundmanis@hbc.com

MEDIA CONTACTS:
Andrew Blecher
646-802-4030
andrew.blecher@hbc.com

Source: Hudson’s Bay Company

Hudson’s Bay Company announces sales results for the nine week period ending December 31, 2016 and updates on Fiscal 2016 Outlook

TORONTO & NEW YORK, 2017-Jan-12 — /EPR Retail News/ — Hudson’s Bay Company (“HBC” or the “Company”) (TSX:HBC) today (January 9, 2017) announced its comparable sales results for the nine week period ending December 31, 2016, and provided an update on its financial outlook for Fiscal 2016.

Jerry Storch, Chief Executive Officer, HBC commented, “Our holiday sales trend improved considerably from what we experienced in the third quarter. On a constant currency basis, the comparable sales trend improved for the Company overall and across every banner, led by strong digital sales growth of 21.7% at our department store banners. However, the sales improvement that we experienced was not strong enough to achieve the results we had expected. Also, while we were pleased with our performance at Hudson’s Bay in Canada, the retail environment has remained challenging in the U.S. and Europe and the significant promotional activity during the holiday period had a negative impact on our margins. This margin pressure was compounded by a declining value of the Euro compared with the Canadian dollar which impacts our translated earnings from HBC Europe. As we head into the new fiscal year, we are focused on continuing to delight our customers with exclusive product offerings and custom all-channel shopping experiences, and by creating exciting retail destinations to increase foot traffic in our stores. The retail environment is clearly changing, and we continue to work diligently across all of our banners to adapt rapidly. This involves evaluating all opportunities to increase the profitability of HBC, and we expect to provide further details on this process in the coming months.”

Comprehensive operational review

HBC continues its focus on improving its business operations as it adapts to a changing retail environment. Late in 2016, the Company launched a comprehensive review of its business operations to identify efficiencies, streamline processes and improve back of store productivity, while also enhancing customer service. Management expects that these initiatives will provide opportunities to increase profitability while ensuring that the Company is prepared to meet the challenges of an evolving retail environment. Over the coming months, the Company expects to provide additional details as work progresses.

Comparable Sales

For the nine week period beginning October 30, 2016 and ending December 31, 2016(1)

  • On a constant currency basis, consolidated comparable sales decrease of 0.7%
    • DSG (Hudson’s Bay, Lord & Taylor and Home Outfitters) comparable sales increase of 1.2%
    • Saks Fifth Avenue comparable sales decrease of 0.5%
    • HBC Off Price (Saks OFF 5TH and Gilt) comparable sales decrease of 5.2%
    • HBC Europe (GALERIA Kaufhof, Galeria INNO and Sportarena) comparable sales decrease of 0.6%
  • Total digital sales, which include Gilt on a pro forma basis, increase of 14.7% on a constant currency comparable basis. Excluding Gilt, total digital sales increase of 21.7% on a constant currency comparable basis.
  • Including the impacts of foreign exchange, consolidated comparable sales decrease of 2.0%

(1) Comparable sales are a Non-IFRS Measure. For the definition of comparable sales results expressed on a constant currency comparable basis, see “Non-IFRS Measures” below.

Outlook

The following outlook is fully qualified by the “Forward-Looking Statements” section of this press release.

The Company’s previously disclosed Fiscal 2016 outlook was based on management’s expectations of flat to low single digit overall comparable sales growth, calculated on a constant currency basis, during the remainder of Fiscal 2016, which included the holiday selling period. Given the Company’s sales results for the holiday selling period and lower than expected gross margins realized to date during the fourth quarter, management is reducing its sales, Adjusted EBITDAR and Adjusted EBITDA outlooks for Fiscal 2016(2). This outlook reflects, among other things, the Company’s performance to date and an updated exchange rate assumption for the EUR/CAD.

(Canadian dollars) Fiscal 2016
Sales $14.4 to $14.6 billion
Adjusted EBITDAR $1,340 to $1,390 million
Adjusted EBITDA $615 to $665 million

The Company now expects total capital investments, net of landlord incentives, to be between $660 million and $710 million, which is approximately 4.5%-4.9% of the midpoint of the Sales outlook. Included in these amounts is the capital expenditure associated with the recent acquisitions of the GALERIA Kaufhof, Galeria INNO, Sportarenaand Gilt banners.

The above outlook reflects exchange rate assumptions of USD:CAD = 1:1.32 and EUR:CAD = 1:1.45. Any variation in these foreign exchange rate assumptions and/or other material assumptions and factors described in the “Forward-Looking Statements” section of this press release could impact the above outlook.

(2) Adjusted EBITDAR and Adjusted EBITDA are Non-IFRS Measures. See “Non-IFRS Measures” section for additional details.

Non-IFRS Measures

EBITDA and EBITDAR are non-IFRS measures that the Company uses to assess its operating performance. EBITDA is defined as net (loss) earnings before finance costs, income tax benefit, share of net loss in the Company’s two real estate joint ventures (the “Joint Ventures”), gain on contribution of assets to Joint Ventures, gain on sale of investments in Joint Ventures, dilution gains from investments in the Joint Ventures, non-cash pension expense, depreciation and amortization expense, impairment and other non-cash expenses and non-cash share based compensation expense. EBITDAR is defined as EBITDA before rent expense to third parties and net rent expense to Joint Ventures.

Adjusted EBITDA is defined as EBITDA adjusted to exclude: (i) business and organization restructuring/realignment charges; (ii) merger/acquisition costs and expenses; and (iii) normalization and joint venture adjustments, including those related to purchase accounting, if any, related to transactions that are not associated with day-to-day operations. Adjusted EBITDAR is defined as Adjusted EBITDA excluding third party rent expense, cash rent to Joint Ventures and cash distributions from Joint Ventures.

The Company has included EBITDA, Adjusted EBITDA and Adjusted EBITDAR to provide investors and others with supplemental measures of its operating performance. The Company believes EBITDA, Adjusted EBITDA and Adjusted EBITDAR are important supplemental measures of operating performance because they eliminate items that have less bearing on the Company’s operating performance and thus highlight trends in its core business that may not otherwise be apparent when relying solely on IFRS financial measures. The Company also believes that securities analysts, investors, rating agencies and other interested parties frequently use EBITDA, Adjusted EBITDA and Adjusted EBITDAR in the evaluation of issuers, many of which present similar metrics when reporting their results. The Company’s management also uses Adjusted EBITDAR in order to facilitate retail business operating performance comparisons from period to period, prepare annual operating budgets and assess its ability to meet its future debt service, capital expenditure and working capital requirements and our ability to pay dividends on our Common Shares. As other companies may calculate EBITDA, Adjusted EBITDA or Adjusted EBITDAR differently than the Company, these metrics may not be comparable to similarly titled measures reported by other companies.

This press release makes reference to certain comparable financial results expressed on a constant currency basis, including comparable sales and comparable digital sales. The Company calculates comparable sales on a year-over-year basis from stores operating for at least 13 months and includes digital sales and clearance store sales. In calculating the comparable sales change, including digital sales, on a constant currency basis, prior year foreign exchange rates are applied to both current year and prior year comparable sales. Additionally, where an acquisition closed in the previous twelve months, comparable sales change on a constant currency basis incorporate results from the pre-acquisition period. This enhances the ability to compare underlying sales trends by excluding the impact of foreign currency exchange rate fluctuations as well as by reflecting new acquisitions. Definitions and calculations of comparable sales and comparable digital sales differ among companies in the retail industry. The Company notes that results from acquisitions are only incorporated in the Company’s reported consolidated financial results from and after the acquisition date.

About Hudson’s Bay Company

Hudson’s Bay Company is one of the fastest-growing department store retailers in the world, based on its successful formula of growing through acquisitions, driving the performance of high quality stores and their all-channel offerings and unlocking the value of real estate holdings. Founded in 1670, HBC is the oldest company in North America. HBC’s portfolio today includes ten banners, in formats ranging from luxury to premium department stores to off price fashion shopping destinations, with more than 480 stores and 66,000 employees around the world.

In North America, HBC’s leading banners include Hudson’s Bay, Lord & Taylor, Saks Fifth Avenue, Gilt, and Saks OFF 5TH, along with Home Outfitters. In Europe, its banners include GALERIA Kaufhof, the largest department store group in Germany, Belgium’s only department store group Galeria INNO, as well as Sportarena.

HBC has significant investments in real estate joint ventures. It has partnered with Simon Property Group Inc. in the HBS Global Properties Joint Venture, which owns properties in the United States and Germany. In Canada, it has partnered with RioCan Real Estate Investment Trust in the RioCan-HBC Joint Venture.

Forward-Looking Statements

Certain statements made in this news release are forward-looking within the meaning of applicable securities laws, including, among others, with respect to improving the efficiency of the organization and opportunities to increase profitability, the Company’s commentary on and revised outlook in respect of sales, Adjusted EBITDA and Adjusted EBITDAR, and other statements that are not historical facts. Often but not always, forward-looking statements can be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “believe”, “estimate”, “plan”, “could”, “should”, “would”, “outlook”, “forecast”, “anticipate”, “foresee”, “continue” or the negative of these terms or variations of them or similar terminology.

Implicit in forward-looking statements in respect of sales, Adjusted EBITDA and Adjusted EBITDAR, are certain current assumptions, including, among others, the Company achieving additional savings from operational initiatives, the Company’s anticipated total capital investments, net of landlord incentives, between $660 million and $710 million, the Company opening new stores in North America, the Company maintaining a significant ownership interest in the HBS Joint Venture and the RioCan-HBC Joint Venture, and assumptions regarding the overall retail environment and currency exchange rates for Fiscal 2016. Specifically, we have assumed the following exchange rates for Fiscal 2016: USD:CAD = 1:1.32 and EUR:CAD = 1:1.45. These current assumptions, although considered reasonable by the Company at the time of preparation, may prove to be incorrect. Readers are cautioned that actual future operating results and economic performance of the Company, including with respect to our anticipated sales, Adjusted EBITDA and Adjusted EBITDAR, are subject to a number of risks and uncertainties, including, among others described below, general economic, geo-political, market and business conditions, changes in foreign currency rates from those assumed, the risk of unseasonal weather patterns and the risk that the Company may not achieve the contemplated cost savings and synergies, and could differ materially from what is currently expected as set out above.

Although HBC believes that the forward-looking statements in this news release are based on information and assumptions that are current, reasonable and complete, these statements are by their nature subject to a number of factors that could cause actual results to differ materially from management’s expectations and plans as set forth in such forward-looking statements for a variety of reasons. Some of the factors – many of which are beyond the Company’s control and the effects of which can be difficult to predict – include, among others: ability to execute retailing growth strategies, ability to continue comparable sales growth, changing consumer preferences, marketing and advertising program success, damage to brands, dependence on vendors, ability to realize synergies and growth from strategic acquisitions, ability to make successful acquisitions and investments, successful inventory management, loss or disruption in centralized distribution centres, ability to upgrade and maintain our information systems to support the organization and protect against cyber-security threats, privacy breach, risks relating to our size and scale, loss of key personnel, ability to attract and retain qualified employees, deterioration in labour relations, ability to maintain pension plan surplus, funding requirement in Saks’ pension plan, funding requirement of the HBC Europe pension plans, limits on insurance policies, loss of intellectual property rights, insolvency risk of parties which we do business with or their unwillingness to perform their obligations, exposure to changes in the real estate market, successful operation of the Joint Ventures to allow the Company to realize the anticipated benefits, loss of flexibility with respect to properties in the Joint Ventures, exposure to environmental liabilities, liabilities associated with Target Corporation and its affiliates and other third parties who have assumed leases from the Company, changes in demand for current real estate assets, increased competition, change in spending of consumers including the impact of unfavourable or unstable political conditions and terrorism, international operational risks, fluctuations in the U.S. dollar, Canadian dollar, Euro and other foreign currencies, increase in raw material costs, seasonality of business, extreme weather conditions or natural disasters, ability to manage indebtedness and cash flow, risks related with increasing indebtedness, restrictions of existing credit facilities reducing flexibility, ability to maintain adequate financial processes and controls, ability to maintain dividends, ability of a small number of shareholders to influence the business, uncontrollable sale of the Company’s Common Shares by significant shareholders could affect share price, constating documents discouraging favorable takeover attempts, increase in regulatory liability, increase in produce liability or recalls, increase in litigation, developments in the credit card and financial services industries, changes in accounting standards and other risks inherent to the Company’s business and/or factors beyond the Company’s control which could have a material adverse effect on the Company.

HBC cautions that the foregoing list of important factors and assumptions is not exhaustive and other factors could also adversely affect its results. For more information on the risks, uncertainties and assumptions that could cause HBC’s actual results to differ from current expectations, please refer to the “Risk Factors” section of HBC’s annual information form dated April 28, 2016, as well as HBC’s other public filings, available at www.sedar.com and at www.hbc.com.

The forward-looking statements contained in this news release describe HBC’s expectations at the date of this news release and, accordingly, are subject to change after such date. Except as may be required by applicable Canadian securities laws, HBC does not undertake any obligation to update or revise any forward-looking statements contained in this news release, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on these forward-looking statements.

INVESTOR RELATIONS:
Kathleen de Guzman
646-802-7070
kathleen.deguzman@hbc.com

Elliot Grundmanis
646-802-2469
elliot.grundmanis@hbc.com

MEDIA CONTACTS:
Andrew Blecher
646-802-4030
andrew.blecher@hbc.com

Source: Hudson’s Bay Company

Hudson’s Bay Company upgrades its Scarborough Distribution Center with the largest Perfect Pick case shuttle system ever built

  • State-of the-art technology catapults HBC to the forefront of e-commerce distribution
  • New system operational in advance of important holiday shopping season

TORONTO, 2016-Nov-07 — /EPR Retail News/ — Hudson’s Bay Company (TSX:HBC) today (November 4, 2016) unveiled a new state-of-the-art robotic fulfillment system, which propels HBC’s Scarborough Distribution Center to the forefront of e-commerce distribution technology. The highly innovative distribution center is the first of its kind in Canada and showcases some of the most advanced automated distribution technology in the retail sector. This distribution center will contribute to a seamless experience for customers and further support Hudson’s Bay’s all-channel retail capabilities.

The system is the largest Perfect Pick case shuttle system ever built and is 12 to 15 times faster than a traditional manual process. It features 16 200-foot long aisles, utilizes the entire vertical height of the building, can hold more than one million units of inventory and can process roughly 4,200 customer orders per hour. Two custom-built document handling robots automate insertion of packing lists, while 15,000 feet of conveyor and a fleet of approximately 300 autonomous robotic delivery vehicles—iBOTs—move inventory for storing and shipping. The best-in-class technology will enable the company to deliver orders three times faster than distribution centers using the next best robotic technology. The investment to upgrade the entire distribution facility was in excess of $60 million.

“Our customers will benefit from the country’s fastest order shipping system,” said Jerry Storch, HBC’s Chief Executive Officer. “We are proud to be the first to bring this industry-leading technology to Canada, in time for the busy holiday season. This investment in our Scarborough Distribution Center creates an e-commerce technology hub and allows us to expand our e-commerce business, which is a key component to our all-channel strategy.”

The 752,000 square foot Scarborough Distribution Center supports e-commerce for HBC’s Hudson’s Bay department store. More than 300 full-time associates are employed at the center.

ABOUT HUDSON’S BAY COMPANY

Hudson’s Bay Company is one of the fastest-growing department store retailers in the world, based on its successful formula of driving the performance of high quality stores and their all-channel offerings, unlocking the value of real estate holdings and growing through acquisitions. Founded in 1670, HBC is the oldest company in North America. HBC’s portfolio today includes ten banners, in formats ranging from luxury to better department stores to off price fashion shopping destinations, with more than 470 stores and 66,000 employees around the world.

In North America, HBC’s leading banners include Hudson’s Bay, Lord & Taylor, Saks Fifth Avenue, Gilt, and Saks OFF 5TH, along with Find @ Lord & Taylor and Home Outfitters. In Europe, its banners include GALERIA Kaufhof, the largest department store group in Germany, Belgium’s only department store group Galeria INNO, as well as Sportarena.

HBC has significant investments in real estate joint ventures. It has partnered with Simon Property Group Inc. in the HBS Global Properties Joint Venture, which owns properties in the United States and Germany. In Canada, it has partnered with RioCan Real Estate Investment Trust in the RioCan-HBC Joint Venture.

MEDIA CONTACT:
Hudson’s Bay Company
Tiffany Bourré
905-595-7184
Director, Corporate Communications
Tiffany.bourre@hbc.com

Source: Hudson’s Bay Company

Hudson’s Bay Company announces the appointment of Ed Burstell to newly created position of Head of Partnerships

TORONTO & NEW YORK, 2016-Oct-25 — /EPR Retail News/ — Hudson’s Bay Company (TSX: HBC) today (October 24, 2016) announced the appointment of Ed Burstell as Head of Partnerships. In this newly created position, Mr. Burstell will develop and lead partnerships to drive innovative and exclusive offerings across all of HBC’s banners globally. The appointment is effective December 5th, and Mr. Burstell will report to HBC’s CEO Jerry Storch as a member of his senior leadership team.

“HBC is focused on innovation, collaboration and developing unique partnerships as part of our strategy to differentiate. Ed’s roster of successful launches and collaborations, matched with his reputation as a true arbiter of fashion, makes him the obvious choice to lead this new division for Hudson’s Bay Company,” said Hudson’s Bay Company CEO Jerry Storch.

“I am thrilled to join Hudson’s Bay Company, especially during this time of global expansion, growth in North America, and industry-leading developments across platforms. I am looking forward to building a partnership platform that delivers exceptional innovation to customers across HBC’s banners, which will contribute to the evolution of one of the most exciting retailers in the world,” stated Mr. Burstell.

Mr. Burstell joins HBC after eight years with Liberty of London. He was instrumental in revitalizing the brand through innovative partnerships, including Liberty of London’s first-ever collaborations and pop-up shops with Hermes and Manolo Blahnik as well as collaborations with Nike and Uniqlo. These initiatives led by Mr. Burstell have contributed to Liberty of London’s double-digit year-over-year growth. Previously, Mr. Burstell was a senior vice president of Accessories, Footwear, Fine Jewelry, Designer Jewelry, Cosmetics and Fragrance at Bergdorf Goodman. Before that, he was general manager of Henri Bendel.

About Hudson’s Bay Company
Hudson’s Bay Company is one of the fastest-growing department store retailers in the world, based on its successful formula of driving the performance of high quality stores and their all-channel offerings, unlocking the value of real estate holdings and growing through acquisitions. Founded in 1670, HBC is the oldest company in North America. HBC’s portfolio today includes ten banners, in formats ranging from luxury to premium department stores to off-price fashion shopping destinations, with more than 470 stores and 66,000 employees around the world.

In North America, HBC’s leading banners include Hudson’s Bay, Lord & Taylor, Saks Fifth Avenue, Gilt, and Saks OFF 5TH, along with Find @ Lord & Taylor and Home Outfitters. In Europe, its banners include GALERIA Kaufhof, the largest department store group in Germany, Belgium’s only department store group Galeria INNO, as well as Sportarena.

HBC has significant investments in real estate joint ventures. It has partnered with Simon Property Group Inc. in the HBS Global Properties Joint Venture, which owns properties in the United States and Germany. In Canada, it has partnered with RioCan Real Estate Investment Trust in the RioCan-HBC Joint Venture.

Media Contacts:
Andrew Blecher
646-802-4030
SVP, Corporate Communications & Public Relations
andrew.blecher@hbc.com

Jen Vargas
646-802-2952
VP, Corporate Communications
jen.vargas@hbc.com

Source: Hudson’s Bay Company

Hudson’s Bay Company announces new stores in Amstelveen and Almere, Netherlands

TORONTO & AMSTERDAM, 2016-Sep-30 — /EPR Retail News/ — Hudson’s Bay Company (“HBC” or the “Company”) (TSX: HBC) is pleased to announce that it has finalized leases for two new store locations in the Netherlands, in addition to the eleven locations previously announced. In aggregate, the announced lease agreements total approximately 172,400 m2 (1,855,600 sq. ft.) and include 12 Hudson’s Bay stores and a Saks OFF 5TH store. As previously announced by the Company, HBC intends to enter the Netherlands with up to 20 new stores over the next two years. HBC’s expansion into the Netherlands introduces two new exciting retail concepts to the Dutch market while leveraging the Company’s existing European business infrastructure.

The newly announced Hudson’s Bay stores are expected to open in the following locations:

Amstelveen, Buitenplein 101
Recognized as the ‘best mall of the Netherlands’, ‘Stadshart’ will welcome a 20,600 m2 (222,000 sq. ft.) Hudson’s Bay on the eastside of the mall. HBC and a.s.r. will transform the existing building completely in close cooperation with the municipality of Amstelveen and other stakeholders.

Edwin van de Woestijne of a.s.r. REIM
“In addition to Amersfoort, Haarlem and Leiden, we also cordially welcome Hudson’s Bay to our beautiful building in Amstelveen. We are delighted with this new concept and look forward to elevating the shopping experience in Amstelveen. Hudson’s Bay’s decision to enter another long-term commitment with a.s.r. demonstrates that our properties are in the right locations and that we are a strong retail partner.”

Almere, Citadel 16
The Hudson’s Bay store in Almere will be situated in Almere’s Citymall, designed by the wellknown Dutch architect Rem Koolhaas. This shopping center is located in the heart of the city and is a popular shopping destination in the region. The Hudson’s Bay store will occupy the former V&D building and additional areas on the first and second floor, with direct access to 2 the two main parking garages. The more than 10,000 m² (107,600 sq. ft.) store is a perfect fit with the mix of international brands and local retailers as Hudson’s Bay will be the only department store in the Dutch region Flevoland.

Otto Ambagtsheer of Unibail-Rodamco:
“As Europe’s leading listed commercial property company we are proud and excited to add Hudson’s Bay to our portfolio. We cordially welcome Hudson’s Bay to Almere. The store will be located in the popular shopping area of Almere and, surrounded by other strong international retail brands, the high-quality Hudson Bay’s department store will be a great draw for our visitors.“

About Hudson’s Bay Company
Hudson’s Bay Company is one of the fastest-growing department store retailers in the world, based on its successful formula of driving the performance of high quality stores and their allchannel offerings, unlocking the value of real estate holdings and growing through acquisitions. Founded in 1670, HBC is the oldest company in North America.

HBC’s portfolio today includes ten banners, in formats ranging from luxury to premium department stores to off price fashion shopping destinations, with more than 470 stores and 66,000 employees around the world. In North America, HBC’s leading banners include Hudson’s Bay, Lord & Taylor, Saks Fifth Avenue, Gilt, and Saks OFF 5TH, along with Find @ Lord & Taylor and Home Outfitters. In Europe, its banners include GALERIA Kaufhof, the largest department store group in Germany, Belgium’s only department store group Galeria INNO, as well as Sportarena.

HBC has significant investments in real estate joint ventures. It has partnered with Simon Property Group Inc. in the HBS Global Properties Joint Venture, which owns properties in the United States and Germany. In Canada, it has partnered with RioCan Real Estate Investment Trust in the RioCan-HBC Joint Venture.

Forward-Looking Statements
Certain statements made in this news release constitute forward-looking statements within the meaning of applicable securities laws, including, without limitation, statements regarding the Company’s plans to expand its European presence to the Netherlands by opening up to 20 stores over the next 2 years, the Company’s expectation that such stores will operate under the Hudson’s Bay and Saks OFF 5TH banners, long term leases for up to 20 store locations will be finalized over the next two years, and the benefits that are expected to result from the expansion into the Netherlands. Often but not always, forward-looking statements can be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “believe”, “estimate”, “plan”, “could”, “should”, “would”, “outlook”, “forecast”, “anticipate”, “foresee”, “continue” or the negative of these terms or variations of them or similar terminology. Although HBC believes that the forward-looking statements in this news release are based on information and assumptions that are current, reasonable and complete, these statements are by their nature subject to a number of factors and risks that could cause actual results to differ materially from management’s expectations and plans as set forth in such forwardlooking statements for a variety of reasons. Some of the factors and risks – many of which are beyond HBC’s control and the effects of which can be difficult to predict – include, among 3 others – (a) the risk that HBC is unable to finalize long term leases for the remaining locations in the Netherlands, (b) the risk that the expansion into the Netherlands requires capital expenditures in excess of those currently anticipated and/or more than 24 months to complete, (c) the risk of introducing new brands into new markets and of doing business abroad, (d) the risk that the anticipated benefits from the expansion into the Netherlands cannot be realized, (e) credit, market, currency, operational, liquidity and funding risks generally, including changes in economic and geopolitical conditions, interest rates or tax rates, and (f) risks and uncertainties relating to information management, technology, supply chain, product safety, changes in law, competition, seasonality, commodity price and business.

HBC cautions that the foregoing list of important factors and assumptions is not exhaustive and other factors could also adversely affect its results. For more information on the risks, uncertainties and assumptions that could cause HBC’s actual results to differ from current expectations, please refer to the “Risk Factors” section of HBC’s Annual Information Form dated April 28, 2016, as well as HBC’s other public filings, available at www.sedar.com and at www.hbc.com.

The forward-looking statements contained in this news release describe HBC’s expectations at the date of this news release and, accordingly, are subject to change after such date. Except as may be required by applicable Canadian securities laws, HBC does not undertake any obligation to update or revise any forward-looking statements contained in this news release, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on these forward-looking statements.

MEDIA CONTACTS:
Citigate First Financial
Marieke Heringa
+31-6-11327533
marieke.heringa@citigateff.nl

Ingrid Prins
+31-6-51592484
ingrid.prins@citigateff.nl

Hudson’s Bay Company
Andrew Blecher
+1-212-391-3179
andrew.blecher@hbc.com

Gerd Koslowski
+49-(0)221-223-5595
gerd.koslowski@kaufhof.de

Source: Hudson’s Bay Company

Hudson’s Bay Company to open its first Quebec Saks Fifth Avenue store in Montreal in Fall 2018

Hudson's Bay Company to open its first Quebec Saks Fifth Avenue store in Montreal in Fall 2018
Hudson’s Bay Company to open its first Quebec Saks Fifth Avenue store in Montreal in Fall 2018

 

NEW YORK & MONTREAL, 2016-Sep-23 — /EPR Retail News/ — Hudson’s Bay Company (TSX:HBC) today (September 22, 2016) announced plans to open its first Quebec Saks Fifth Avenue location in Montreal, within the historic Hudson’s Bay on Boulevard de Maisonneuve. The approximately 200,000 square-foot, multi-level store will be the largest Saks Fifth Avenue store in Canada and, similar to the award-winning approach taken at CF Toronto Eaton Centre, will be co-located with Hudson’s Bay in the same building. The opening is planned for Fall 2018.

The new Saks flagship store will offer customers designer product including: women’s designer ready-to-wear, handbags, accessories, beauty and men’s. The store will feature some of Saks’ exclusive offerings, including: 10022-SHOE, Saks Fifth Avenue’s signature women’s designer shoe salon, and a full service Fifth Avenue Club, complete with private suites and personal shopping consultants. Unique to the Montreal store will be a Quebec-themed Saks Fifth Avenue food hall.

“We are excited to bring the distinctive Saks Fifth Avenue experience to Montreal, which has long been a destination for fashion in Canada,” commented Marc Metrick, President, Saks Fifth Avenue. “Shoppers here are known for their impeccable style and we’re confident that Saks’ superior designer merchandise and exemplary customer service will be as well-received here as it has been across Canada.”

Hudson’s Bay will undergo an extensive renovation that will reconfigure the store layout, redefine departments and enhance the overall shopping environment. The multi-million dollar investment in Canada’s iconic store will touch all levels of the building, and further positions Hudson’s Bay as the most exciting department store in Canada. The new concept for Hudson’s Bay will introduce the most modern department store shopping experience while maintaining the company’s heritage. The plans build on the success of the company’s Queen Street flagship, where Hudson’s Bay and Saks Fifth Avenue are co-located and offer an unparalleled shopping experience.

“The reimagining of our iconic Montreal location is a significant milestone in the evolution of our Hudson’s Bay store, given the importance of the Quebec customer to our business,” stated Liz Rodbell, President, Hudson’s Bay and Lord & Taylor. “In today’s digital world, our store experience is paramount in our mission to entertain and delight our customers. This renovation will keep Hudson’s Bay central to our customers’ shopping experience for years to come.”

Saks Fifth Avenue currently has two full-line stores in Canada at CF Toronto Eaton Centre and CF Sherway Gardens, and has announced plans for a store in Calgary, Alberta.

Hudson’s Bay will remain open throughout the renovation process.

ABOUT SAKS FIFTH AVENUE
Saks Fifth Avenue, one of the world’s pre-eminent specialty retailers, is renowned for its superlative American and international designer collections, its expertly edited assortment of handbags, shoes, jewelry, cosmetics and gifts, and the first-rate fashion expertise and exemplary client service of its Associates. As part of the Hudson’s Bay Company brand portfolio, Saks operates 40 full-line stores in 22 states and Canada, five international licensed stores and saks.com, the company’s online store.

ABOUT HUDSON’S BAY
Hudson’s Bay Company, incorporated in 1670, is North America’s oldest company. Hudson’s Bay has grown to become Canada’s most prominent department store, today operating 90 full-line locations and thebay.com. It has established a reputation for quality, service, and style by offering well-edited assortments of exclusive and popular fashion, beauty, home and accessory designers and brands. It is part of the Hudson’s Bay Company brand portfolio.

ABOUT HUDSON’S BAY COMPANY
Hudson’s Bay Company is one of the fastest-growing department store retailers in the world, based on its successful formula of driving the performance of high quality stores and their all-channel offerings, unlocking the value of real estate holdings and growing through acquisitions. Founded in 1670, HBC is the oldest company in North America. HBC’s portfolio today includes ten banners, in formats ranging from luxury to better department stores to off price fashion shopping destinations, with more than 470 stores and 66,000 employees around the world.

In North America, HBC’s leading banners include Hudson’s Bay, Lord & Taylor, Saks Fifth Avenue, Gilt, and Saks OFF 5TH, along with Find @ Lord & Taylor and Home Outfitters. In Europe, its banners include GALERIA Kaufhof, the largest department store group in Germany, Belgium’s only department store group Galeria INNO, as well asSportarena.

HBC has significant investments in real estate joint ventures. It has partnered with Simon Property Group Inc. in theHBS Global Properties Joint Venture, which owns properties in the United States and Germany. In Canada, it has partnered with RioCan Real Estate Investment Trust in the RioCan-HBC Joint Venture.

MEDIA CONTACTS:
Hudson’s Bay Company
Tiffany Bourré
905-595-7184
Director, Corporate Communications
Tiffany.bourre@hbc.com

Hudson’s Bay Company
Jen Vargas
646-802-2952
VP, Corporate Communications
Jen.vargas@hbc.com

Source: Hudson’s Bay Company

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Hudson’s Bay Company announces the appointment of David J. Schwartz as General Counsel and EVP

Toronto, ON, 2016-Sep-09 — /EPR Retail News/ — Hudson’s Bay Company today (Sept 8, 2016 ) announced the appointment of David J. Schwartz as General Counsel and Executive Vice President. Mr. Schwartz will lead the company’s global legal organization across banners, and will drive initiatives critical to HBC’s strategic plan. The appointment is effective Friday, September 30th, and Mr. Schwartz will report to HBC’s CEO Jerry Storch, be a member of the Company’s Executive Leadership Team, and serve as corporate secretary to its Board of Directors. Mr. Schwartz succeeds David Pickwoad, the company’s General Counsel who is leaving HBC to pursue other opportunities.

“HBC’s worldwide legal organization is critical to our global business and how we execute against our strategic plan. David Schwartz’s extensive legal and regulatory affairs experience in international retail, spanning real estate, intellectual property, litigation, regulatory compliance and securities makes him the best candidate to lead our global legal function,” said Hudson’s Bay Company CEO Jerry Storch. “We are grateful to David Pickwoad for his leadership at HBC over the past six years, and wish him all the best in his next endeavor.”

Mr. Schwartz joins HBC after 15 years with Toys “R” Us, where he served as General Counsel for over a decade. He began his tenure at Toys “R” Us as Vice President, Corporate Counsel in 2001, was named Deputy General Counsel in 2002, and appointed General Counsel in 2003. Prior to Toys “R” Us, Mr. Schwartz was a corporate partner at Anderson, Kill & Olick, P.C.

Mr. Schwartz holds a bachelor’s degree in economics from Duke University, a Juris Doctor from the University of Pennsylvania School of Law, and an MBA from Columbia University Business School. He is a member of the New York, New Jersey and Washington, D.C. Bars.

About Hudson’s Bay Company
Hudson’s Bay Company is one of the fastest-growing department store retailers in the world, based on its successful formula of driving the performance of high quality stores and their all-channel offerings, unlocking the value of real estate holdings and growing through acquisitions. Founded in 1670, HBC is the oldest company in North America. HBC’s portfolio today includes ten banners, in formats ranging from luxury to premium department stores to off-price fashion shopping destinations, with more than 470 stores and 66,000 employees around the world.

In North America, HBC’s leading banners include Hudson’s Bay, Lord & Taylor, Saks Fifth Avenue, Gilt, and Saks OFF 5TH, along with Find @ Lord & Taylor and Home Outfitters. In Europe, its banners include GALERIA Kaufhof, the largest department store group in Germany, Belgium’s only department store group Galeria INNO, as well as Sportarena.

HBC has significant investments in real estate joint ventures. It has partnered with Simon Property Group Inc. in the HBS Global Properties Joint Venture, which owns properties in the United States and Germany. In Canada, it has partnered with RioCan Real Estate Investment Trust in the RioCan-HBC Joint Venture.

Media Contact:
Andrew Blecher SVP
Corporate Communications &amp Public Relations
Hudson’s Bay Company
P: 646.802.4030
Andrew.blecher@hbc.com

Jen Vargas
VP, Corporate Communications
Hudson’s Bay Company
P: 646-802-2952
Jen.vargas@hbc.com

Source: Hudson’s Bay Company

Hudson’s Bay Company announced 2Q financial results for thirteen and twenty-six week periods ended July 30, 2016

TORONTO & NEW YORK & COLOGNE, Germany, 2016-Sep-07 — /EPR Retail News/ — Hudson’s Bay Company (“HBC” or the “Company”) (TSX: HBC) today (September 6, 2016) announced its second quarter financial results for the thirteen and twenty-six week periods ended July 30, 2016. Unless otherwise indicated, all amounts are expressed in Canadian dollars. Certain metrics, including those expressed on an adjusted, normalized, comparable and/or constant currency basis, are non-IFRS financial measures (for more information please refer to the “Supplemental Information” section of this press release and the reconciliation tables further below).

“The second quarter was another solid quarter for HBC. We continued to execute on our expansion plans in Europe with the announcement that we would be introducing our iconic Hudson’s Bay banner to the Netherlands. We currently plan to open up to 20 stores, and during the quarter signed long term lease agreements for 11 locations accounting for approximately 1,526,000 square feet. We also announced the first five Saks OFF 5TH locations in Germany, which we expect to open next summer. In New York we closed a U.S. $400 million, 5-year mortgage on our Lord & Taylor flagship location on 5th Avenue which valued the property at U.S. $655 million based on an independent appraisal commissioned by the lenders. This transaction, as well as the attractive rate we secured, exemplifies both the value of our real estate portfolio and the significant financial flexibility that it provides to HBC as we work through a challenging retail environment” stated Richard Baker, HBC’s Governor and Executive Chairman.

Jerry Storch, HBC’s Chief Executive Officer, added, “In the second quarter we made good progress on focusing on expenses and leveraging our scale to increase efficiencies. Additionally, our sales associates continued to delight our customers and were able to drive sales in a challenging market. Gross margins increased 200 basis points as a result of the inclusion of HBC Europe as well as our revised pricing strategy at Saks OFF 5TH. To support our digital growth we are bringing industry-leading robotic technology to Canada which we expect will reduce digital order processing time and generate significant savings. We expect the first installation to be fully functional this fall, and are currently the only company in Canada to utilize this technology. We are also proud to support Team Canada in the Rio Olympic and Paralympic games, and it was great to see the iconic Hudson’s Bay stripes in both the opening and closing ceremonies and on the medal podiums. As we look towards the second half of 2016, we are monitoring the retail environment closely and are taking prudent steps to ensure that HBC is in a position to capitalize on the opportunities presented as we anniversary last year’s tough third and fourth quarters. Despite the uncertainty in the current environment, we remain focused on executing on our long term strategy for profitable growth.”

Second Quarter Summary

All comparative figures below are for the thirteen week period ended July 30, 2016 compared to the thirteen week period ended August 1, 2015. DSG refers, collectively, to the Lord & Taylor, Hudson’s Bay and Home Outfitters banners. HBC Europe refers, collectively, to GALERIA Kaufhof, Galeria INNO and Sportarena banners. HBC Off Price refers, collectively, to the Saks Fifth Avenue OFF 5TH (“Saks OFF 5TH”) and Gilt banners.

Consolidated retail sales were $3,252 million, an increase of 59.6% from the prior year, primarily as a result of the addition of HBC Europe and Gilt as well as an increase in comparable sales of 1.9%. On a constant currency basis, comparable sales grew 1.1% at DSG, offset by declines of 0.9% at HBC Europe, 11.4% at HBC Off Price and 1.3% at Saks Fifth Avenue, resulting in a total comparable sales decline of 1.3%. Total Digital sales increased by 84.4% from the prior year, with total Digital comparable sales increasing by 1.4% on a constant currency basis. Excluding HBC Off Price, total Digital comparable sales increased 17.3% on a constant currency basis.

As discussed in the prior quarter, HBC has significantly reduced its promotional activity at Saks OFF 5TH compared to the prior year, which has substantially increased margins while reducing sales. During the quarter the Company also migrated the Saks OFF 5TH website to a new platform, which caused some disruption and impacted Digital sales at this banner. In addition, at Gilt, which is included in HBC Off Price and is a major component of the Company’s digital comparisons, the return policy was enhanced. The Company expects the liberalization of the return policy at Gilt and the new common digital platform will enable HBC to build stronger relationships with its customers over the long term.

For HBC overall, gross profit rate as a percentage of retail sales was 41.5%, an increase of 200 basis points from the prior year. This increase was primarily related to the addition of HBC Europe, which operates at relatively higher gross margin and SG&A rates, as well as higher gross margins at Saks OFF 5TH.

The Company remains focused on improving efficiencies, reducing expenses and optimizing its real estate portfolio, and has made solid progress on its expense management initiatives disclosed previously. These initiatives include the North American operations realignment program, voluntary restructuring programs of its European operations, and the outsourcing of IT systems maintenance positions in North America. During the quarter the Company recorded charges of $4 million related to these initiatives.

Over the last year, HBC has grown dramatically through the acquisition of GALERIA Kaufhof, Gilt, and the creation of the respective joint ventures with RioCan Real Estate Investment Trust and Simon Property Group (collectively the “Joint Ventures”). Until the Company begins to anniversary these transactions, SG&A expenses will not be directly comparable to previous periods.

SG&A expenses were $1,286 million compared to $775 million in the prior year. This increase reflects the additions of HBC Europe, Gilt and the Joint Ventures. Normalized SG&A expenses were $1,249 million or 38.4% of retail sales, compared to 36.9% in the prior year. This rate increase was driven by the inclusion of HBC Europe, which operates at a higher SG&A rate, and the additional net rent expense incurred in connection with the Joint Ventures.

Adjusted EBITDAR was $263 million, an increase of 113.8% compared to $123 million in the prior year, primarily as a result of the addition of HBC Europe. As a percentage of retail sales, Adjusted EBITDAR improved 210 basis points to 8.1%, reflecting the Company’s continued focus on increasing efficiencies.

Adjusted EBITDA was $81 million, an increase of 55.8% compared to $52 million in the prior year. The Joint Ventures had a $61 million impact on Adjusted EBITDA during the quarter. These Joint Venture expenses are essentially flat over the course of the year, while the retail business is seasonal, with sales and earnings weighted towards the second half of the fiscal year. While management believes that Adjusted EBITDA is less useful than Adjusted EBITDAR when evaluating the performance of the retail business, the Company will continue to disclose Adjusted EBITDA.

Finance costs were $56 million compared to $52 million in the prior year, primarily due to the change in non-cash finance income generated from mark to market adjustments associated with the valuation of outstanding common share purchase warrants.

Net loss was $142 million compared to Net earnings of $59 million in the prior year. Prior year earnings include a pre-tax gain of $133 million related to the creation of the Joint Ventures. Normalized net loss was $122 millioncompared to a loss of $61 million in the prior year. The increase is primarily a result of the creation of the Joint Ventures and the additional net rent expense associated with these entities, which are spread evenly over the course of the year, as well as increased depreciation and amortization expenses.

Year-to-Date Summary

All comparative figures below are for the twenty-six week period ended July 30, 2016 compared to the twenty-six week period ended August 1, 2015.

Consolidated retail sales were $6,555 million, an increase of 59.5% from the prior year, primarily as a result of the addition of HBC Europe and Gilt as well as an increase in comparable sales of 3.2%. On a constant currency basis, comparable sales grew 1.7% at DSG, offset by declines of 0.1% at HBC Europe, 7.9% at HBC Off Price and 3.7% at Saks Fifth Avenue, resulting in a total comparable sales decline of 1.1%. Total Digital sales increased by 86.9% from the prior year, with total Digital comparable sales increasing by 5.5% on a constant currency basis.

For HBC overall, gross profit rate as a percentage of retail sales was 41.7%, an increase of 140 basis points from the prior year. This increase was primarily related to the addition of HBC Europe, which operates at relatively higher gross margin and SG&A rates, as well as increased margins at Saks OFF 5TH.

SG&A expenses were $2,681 million compared to $1,555 million in the prior year, primarily as a result of the addition of HBC Europe, Gilt, and the Joint Ventures. Normalized SG&A expenses were $2,549 million or 38.9% of retail sales, compared to 36.5% in the prior year.. This rate increase was primarily driven by the inclusion of HBC Europe, as well as net rent expense incurred in connection with the Joint Ventures.

Adjusted EBITDAR was $513 million, an increase of 74.5% compared to $294 million in the prior year, primarily as a result of the addition of HBC Europe. As a percentage of retail sales, Adjusted EBITDAR improved 60 basis points to 7.8%, reflecting the Company’s continued focus on improving efficiencies.

Adjusted EBITDA was $143 million, compared to $156 million in the prior year. The Joint Ventures had a $122 million impact on Adjusted EBITDA during the first two quarters of this fiscal year. These Joint Venture expenses are essentially flat over the course of the year, while the retail business is seasonal, with sales and earnings weighted towards the second half of the fiscal year.

Finance costs were $101 million compared to $99 million in the prior year. Cash interest costs were $86 million, a$15 million increase over the prior year. The majority of this increase is related to finance lease payments at HBC Europe and long term property leases at the RioCan-HBC Joint Venture.

Net loss was $239 million compared to net earnings of $10 million in the prior year. Prior year earnings include a pre-tax gain of $133 million related to the Joint Ventures. Normalized net loss was $213 million compared to a loss of $89 million in the prior year, primarily as a result of the creation of the Joint Ventures and the additional net rent expense associated with these entities, which are spread evenly over the course of the year, as well as increased depreciation and amortization expense.

Inventory

Inventory at the end of the second quarter increased by $829 million compared to the prior year. The addition of HBC Europe and Gilt accounted for the majority of the increase. The remainder was driven by additional inventory related to new store openings. On a total company basis, management believes that inventory is in line with the Company’s sales expectations for the coming quarters.

Store Network

During the second quarter, the Company opened one Saks Fifth Avenue store located in Greenwich, Connecticutand two Saks OFF 5TH stores located in Chicago, Illinois and Plymouth Meeting, Pennsylvania. The Company closed one Home Outfitters store in Anjou, Quebec.

Store information as at July 30, 2016 Store Count(1) Gross Leasable Area (1) /Square Footage (000s)
Hudson’s Bay 90 15,864
Lord & Taylor 50 6,898
Saks Fifth Avenue 41 5,051
OFF 5TH 102 3,028
Home Outfitters 59 2,102
HBC Europe 130 28,609
Total 472 61,552

(1) Hudson’s Bay Company operates one Find @ Lord & Taylor store, one Hudson’s Bay outlet, two Zellers clearance centers and two Lord & Taylor outlets that are excluded from the store count and gross leasable area.

Capital Expenditure

Capital expenditures, net of landlord incentives, during the second quarter totaled $186 million, compared to $65 million in the prior year. HBC’s initiatives during the quarter included the opening of two Saks OFF 5TH stores in the U.S. and a Saks Fifth Avenue store located in Greenwich, Connecticut. Additionally, the Company completed the remodeling of the 4th floor of the Saks Fifth Avenue flagship in Manhattan, and made significant progress on the construction of the new Brookfield Place and Hawaii Saks Fifth Avenue stores which are expected to open during the third quarter. Installation of automated order fulfillment technology at the Company’s distribution centre inToronto is nearing completion, and the Company expects that this upgrade will significantly increase the efficiency with which online orders are processed.

Debt Summary

As at July 30, 2016, the Company had the following outstanding loans and borrowings on its balance sheet (refer to note 11 of the unaudited interim condensed consolidated financial statements for the thirteen and twenty-six week periods ended July 30, 2016):

(millions of Canadian dollars, unless otherwise noted) TOTAL ($) CAD ($) USD ($) EUR (€)
Global Revolving Credit Facility 849 302 397 20
U.S. Term Loan B 653 500
Lord & Taylor Mortgage 522 400
Saks Mortgage 1,632 1,250
Other loans 8 6
Total Outstanding Loans and Borrowings 3,664 302 2,553 20

Dividend

The Company also announced today that its Board of Directors has approved a quarterly dividend to be paid onOctober 17, 2016, to shareholders of record at the close of business on September 30, 2016. The dividend is in the amount of $0.05 per Common Share and is designated as an “eligible dividend” for Canadian tax purposes.

Outlook

The following outlook is fully qualified by the “Forward-Looking Statements” section of this press release

Given the overall retail environment, management currently expects Sales, Adjusted EBITDAR and Adjusted EBITDA for Fiscal 2016 to trend towards the bottom end of its outlook range. This outlook reflects the Company’s performance to date and anticipates overall comparable sales growth, calculated on a constant currency basis, to be in the low single digits for the remainder of the fiscal year as the Company anniversaries the challenging fall season experienced in Fiscal 2015.

(Canadian dollars) Fiscal 2016
Sales $14.9 to $15.9 billion
Adjusted EBITDAR $1,560 to $1,710 million
Adjusted EBITDA $800 to $950 million

The Company currently expects that in Fiscal 2016 it will make higher than normal investments in growth initiatives, with total capital investments, net of landlord incentives, expected to be between $750 million and $850 million, which is approximately 5.0%-5.7% of the midpoint of the Sales outlook. Included in these amounts is the anticipated capital spend associated with the Company’s recent acquisitions: HBC Europe and Gilt. Capital expenditure related to growth initiatives is expected to be approximately 70% of the total amount, with the remaining 30% representing maintenance capital expenditures.

The above outlook reflects exchange rate assumptions of USD:CAD = 1:1.32 & EUR:CAD = 1:1.50. Any variation in these foreign exchange rate assumptions could impact the above outlook.

Conference Call to Discuss Results

Richard Baker, HBC’s Governor and Executive Chairman, Jerry Storch, HBC’s Chief Executive Officer and Paul Beesley, HBC’s Chief Financial Officer, will discuss the second quarter financial results and other matters during a conference call on September 7, 2016 at 8:30 am EST.

The conference call will be accessible by calling the participant operator assisted toll-free dial-in number (800) 535-7056 or international dial-in number (253) 237-1145. A live webcast of the conference call will be accessible on HBC’s website at: http://investor.hbc.com/events.cfm. The audio replay also will be available via this link.

Consolidated Financial Statements and Management’s Discussion and Analysis

The Company’s unaudited interim condensed consolidated financial statements for the thirteen and twenty-six week periods ended July 30, 2016 and Management’s Discussion and Analysis thereon are available under the Company’s profile on SEDAR at www.sedar.com.

Consolidated Financial Information

The following tables set out summary consolidated financial information and supplemental information for the periods indicated. The summary financial information set out below has been derived from unaudited interim condensed consolidated financial statements, prepared in accordance with International Accounting Standard 34, Interim Financial Reporting, for the thirteen and twenty-six week periods ended July 30, 2016. The unaudited financial information presented has been prepared on a basis consistent with our audited consolidated financial statements for Fiscal 2015. In the opinion of our management, such unaudited financial data reflects all adjustments, consisting of normal and recurring adjustments, necessary for a fair presentation of the results for those periods. The results of operations for interim periods are not necessarily indicative of the results to be expected for a full year or any future period.

About Hudson’s Bay Company

Hudson’s Bay Company is one of the fastest-growing department store retailers in the world, based on its successful formula of driving the performance of high quality stores and their all-channel offerings, unlocking the value of real estate holdings and growing through acquisitions. Founded in 1670, HBC is the oldest company in North America. HBC’s portfolio today includes ten banners, in formats ranging from luxury to premium department stores to off price fashion shopping destinations, with more than 470 stores and 66,000 employees around the world.

In North America, HBC’s leading banners include Hudson’s Bay, Lord & Taylor, Saks Fifth Avenue, Gilt, and OFF 5TH, along with Find @ Lord & Taylor and Home Outfitters. In Europe, its banners include GALERIA Kaufhof, the largest department store group in Germany, Belgium’s only department store group Galeria INNO, as well as Sportarena.

HBC has significant investments in real estate joint ventures. It has partnered with Simon Property Group Inc. in the HBS Global Properties Joint Venture, which owns properties in the United States and Germany. In Canada, it has partnered with RioCan Real Estate Investment Trust in the RioCan-HBC Joint Venture.

Forward-Looking Statements

Certain statements made in this news release, including, but not limited to, the benefits that are expected to result from the acquisitions of HBC Europe and Gilt, the Company’s plans for expansion in Europe, the benefits that are expected to result from the installation of automated order fulfillment technology at the Company’s distribution centre in Toronto, benefits of reduced promotional activity at Saks OFF 5TH and an enhanced return policy at Gilt, impact on the Company’s reported gross profit and expense margins as a result of the acquisition of HBC Europe, the benefits that are expected to result from the North American operations realignment initiative and additional cost saving activities, expected expenditures on investments in growth initiatives, the Company’s prospects for future growth opportunities, including targeting acquisitions, anticipated store openings, the Company’s growth strategies of improving retail operations and unlocking the value of real estate, and the Company’s commentary on outlook in respect of Sales, Adjusted EBITDAR, and Adjusted EBITDA, and other statements that are not historical facts, are forward-looking. Often but not always, forward-looking statements can be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “believe”, “estimate”, “plan”, “could”, “should”, “would”, “outlook”, “forecast”, “anticipate”, “foresee”, “continue” or the negative of these terms or variations of them or similar terminology.

Implicit in forward-looking statements in respect of Sales, Adjusted EBITDA, and Adjusted EBITDAR, are certain current assumptions, including, among others, the Company achieving overall low single digit comparable store sales growth on a constant currency basis for the remainder of Fiscal 2016, the Company achieving additional savings from operational initiatives, the Company’s anticipated total capital investments, net of landlord incentives, between $750 million and $850 million, the Company opening new stores in North America, the Company maintaining a significant ownership interest in the HBS Joint Venture and the RioCan-HBC JV, and assumptions regarding the overall retail environment and currency exchange rates for Fiscal 2016. Specifically, we have assumed the following exchange rates for Fiscal 2016: USD:CAD = 1:1.32 and EUR:CAD = 1:1.50. These current assumptions, although considered reasonable by the Company at the time of preparation, may prove to be incorrect. Readers are cautioned that actual future operating results and economic performance of the Company, including with respect to our anticipated Sales, Adjusted EBITDA, and Adjusted EBITDAR, are subject to a number of risks and uncertainties, including, among others described below, general economic, geo-political, market and business conditions, changes in foreign currency rates from those assumed, the risk of unseasonal weather patterns, the risk that the Company may not achieve comparable sales growth on a constant currency basis for the remainder of Fiscal 2016 and the risk that the Company may not achieve the contemplated cost savings and synergies as described above, and could differ materially from what is currently expected as set out above.

Although HBC believes that the forward-looking statements in this news release are based on information and assumptions that are current, reasonable and complete, these statements are by their nature subject to a number of factors that could cause actual results to differ materially from management’s expectations and plans as set forth in such forward-looking statements for a variety of reasons. Some of the factors – many of which are beyond HBC’s control and the effects of which can be difficult to predict – include, among others: ability to execute retailing growth strategies, ability to continue comparable sales growth, changing consumer preferences, ability to realize synergies and growth from strategic acquisitions, ability to make successful acquisitions and investments, successful inventory management, ability to upgrade and maintain our information systems to support the organization and protect against cyber-security threats, privacy breach, loss of key personnel, ability to retain key personnel of HBC Europe and Gilt, ability to attract and retain qualified employees, exposure to changes in the real estate market, successful operation of the Joint Ventures to allow the Company to realize the anticipated benefits, loss of flexibility with respect to properties in the Joint Ventures, exposure to environmental liabilities, changes in demand for current real estate assets, increased competition, change in spending of consumers including the impact of unfavourable or unstable political conditions and terrorism, fluctuations in the U.S. dollar, Canadian dollar, Euro and other foreign currencies, increase in raw material costs, extreme weather conditions or natural disasters, ability to manage indebtedness and cash flow, risks related with increasing indebtedness, restrictions of existing credit facilities reducing flexibility, ability to maintain adequate financial processes and controls, ability to maintain dividends, developments in the credit card and financial services industries, and other risks inherent to the Company’s business and/or factors beyond the Company’s control which could have a material adverse effect on the Company.

HBC cautions that the foregoing list of important factors and assumptions is not exhaustive and other factors could also adversely affect its results. For more information on the risks, uncertainties and assumptions that could cause HBC’s actual results to differ from current expectations, please refer to the “Risk Factors” section of HBC’s Annual Information Form dated April 28, 2016, as well as HBC’s other public filings, available at www.sedar.com and at www.hbc.com.

The forward-looking statements contained in this news release describe HBC’s expectations at the date of this news release and, accordingly, are subject to change after such date. Except as may be required by applicable Canadian securities laws, HBC does not undertake any obligation to update or revise any forward-looking statements contained in this news release, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on these forward-looking statements.

Caution should also be exercised in the evaluation and use of the independent appraisal results. The appraisals are based on various assumptions of future expectations, including the assumption that the entire flagship property is net leased by Lord & Taylor at an estimated current fair market rent. While the appraiser’s assumptions are considered to be reasonable at the current time, some of the assumptions may not materialize or may differ materially from actual experience in the future.

INVESTOR RELATIONS:
Hudson’s Bay Company:
Kathleen de Guzman
646-802-7070
kathleen.deguzman@hbc.com

Elliot Grundmanis
416-256-6732
elliot.grundmanis@hbc.com

MEDIA CONTACTS:
Hudson’s Bay Company:

Andrew Blecher
646-802-4030
Andrew.blecher@hbc.com

Source: Hudson’s Bay Company

Hudson’s Bay Company closes $400 million, 5-year mortgage on the Lord &Taylor flagship property in New York City

TORONTO & NEW YORK, 2016-Jul-21 — /EPR Retail News/ — (all values in U.S. Dollars) – Hudson’s Bay Company (“HBC” or the “Company”) (TSX: HBC) is pleased to announce the closing of a $400 million, 5-year mortgage (the “L&T Mortgage”), on the Lord & Taylor flagship property in New York City, located at 424-438 Fifth Avenue to refinance the existing mortgage of $250 million due September 2017.

The additional proceeds will be used to reduce the borrowings on the Company’s revolving credit facility. The new loan will mature in August 2021 and has an average interest rate fixed at approximately 4.3%. In connection with this transaction, the lenders independently commissioned a leading international appraiser to provide an appraisal of the property. This appraisal valued the property at $655 million based on the assumption that the property is net leased by Lord & Taylor at an estimated current fair market rent1.

“The opportunistic refinancing of the mortgage on the L&T flagship property is yet another example of the successful execution of our strategy as we continue to leverage our significant real estate portfolio. We are pleased to extend our Company’s debt maturity profile as well as secure an attractive interest rate of 4.3% through the term of the new mortgage,” stated Richard Baker, HBC’s Governor and Executive Chairman. Mr. Baker continued, “HBC’s two wholly owned flagship properties on 5th Avenue in New York City, which have been valued at a combined $4.36 billion based on independent appraisals2, continue to provide the Company access to secure long term debt at attractive rates. This debt is non-recourse to the operating company and provides HBC with an efficient capital structure from which to continue its global retailing growth initiatives.”

About Hudson’s Bay Company
Hudson’s Bay Company is one of the fastest-growing department store retailers in the world, based on its successful formula of driving the performance of high quality stores and their all-channel offerings, unlocking the value of real estate holdings and growing through acquisitions. Founded in 1670, HBC is the oldest company inNorth America. HBC’s portfolio today includes ten banners, in formats ranging from luxury to premium department stores to off-price fashion shopping destinations, with more than 460 stores and 66,000 employees around the world.

In North America, HBC’s leading banners include Hudson’s Bay, Lord & Taylor, Saks Fifth Avenue, Gilt, and Saks OFF 5TH, along with Find @ Lord & Taylor and Home Outfitters. In Europe, its banners include GALERIA Kaufhof, the largest department store group in Germany, Belgium’s only department store group Galeria INNO, as well asSportarena.

HBC has significant investments in real estate joint ventures. It has partnered with Simon Property Group Inc. in the HBS Global Properties Joint Venture, which owns properties in the United States and Germany. In Canada, it has partnered with RioCan Real Estate Investment Trust in the RioCan-HBC Joint Venture.

Appraisal Results
Caution should be exercised in the evaluation and use of the independent appraisal results. The appraisals are an estimate of value at a specific date and are not a precise measure of value, being based on a subjective comparison of related activity taking place in the real estate market. The appraisals are based on various assumptions of future expectations, including the assumption that the entire flagship property is net leased by Lord & Taylor at an estimated current fair market rent. While the appraiser’s assumptions are considered to be reasonable at the current time, some of the assumptions may not materialize or may differ materially from actual experience in the future.

Forward Looking Statements
Certain statements made in this news release that are not historical facts may constitute forward-looking information. Implicit in such forward-looking statements are certain current assumptions regarding expected growth, results of operations, performance, and business prospects and opportunities, including assumptions underlying the independent appraisal of the Lord & Taylor flagship property. These assumptions, although considered reasonable by the Company at the time of preparation, may prove to be incorrect. Although HBC believes that the forward-looking statements in this news release are based on information and assumptions that are current, reasonable and complete, these statements are by their nature subject to a number of factors that could cause actual results to differ materially from management’s expectations and plans as set forth in such forward-looking statements for a variety of reasons.

Some of the factors – many of which are beyond HBC’s control and the effects of which can be difficult to predict – include, among others: ability to execute retailing growth strategies, ability to continue comparable store sales growth, changing consumer preferences, ability to realize synergies and growth from strategic acquisitions, ability to make successful acquisitions and investments, successful inventory management, ability to upgrade and maintain our information systems to support the organization and protect against cyber-security threats, privacy breach, loss of key personnel, ability to retain key personnel of HBC Europe and Gilt, ability to attract and retain qualified employees, exposure to changes in the real estate market, successful operation of the Joint Ventures to allow the Company to realize the anticipated benefits, loss of flexibility with respect to properties in the Joint Ventures, exposure to environmental liabilities, changes in demand for current real estate assets, increased competition, change in spending of consumers including the impact of unfavourable or unstable political conditions and terrorism, fluctuations in the U.S. dollar, Canadian dollar, Euro and other foreign currencies, increase in raw material costs, extreme weather conditions or natural disasters, ability to manage indebtedness and cash flow, risks related with increasing indebtedness, restrictions of existing credit facilities reducing flexibility, ability to maintain adequate financial processes and controls, ability to maintain dividends, developments in the credit card and financial services industries, and other risks inherent to the Company’s business and/or factors beyond the Company’s control which could have a material adverse effect on the Company.

HBC cautions that the foregoing list of important factors and assumptions is not exhaustive and other factors could also adversely affect its results. For more information on the risks, uncertainties and assumptions that could cause HBC’s actual results to differ from current expectations, please refer to the “Risk Factors” section of HBC’s Annual Information Form dated April 28, 2016, as well as HBC’s other public filings, available at www.hbc.com. and at www.hbc.com.

The forward-looking statements contained in this news release describe HBC’s expectations at the date of this news release and, accordingly, are subject to change after such date. Except as may be required by applicable Canadian securities laws, HBC does not undertake any obligation to update or revise any forward-looking statements contained in this news release, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on these forward-looking statements.

1 See “Appraisal Results” for cautionary language.
2 The $3.7 billion appraised value of the Saks Fifth Avenue Flagship building assumes the completion of the current $250 million renovation program.

Contacts:
INVESTOR RELATIONS:
Hudson’s Bay Company:

Kathleen de Guzman
646-807-0148
kathleen.deguzman@hbc.com

Elliot Grundmanis
416-256-6732
elliot.grundmanis@hbc.com

MEDIA CONTACT:
Hudson’s Bay Company:
Andrew Blecher
212-391-3179
Andrew.blecher@hbc.com

Source: Hudson’s Bay Company

Hudson’s Bay Company finalized leases for seven new store locations in the Netherlands

TORONTO en AMSTERDAM, 2016-Jul-13 — /EPR Retail News/ — Hudson’s Bay Company (“HBC” or the “Company”) (TSX: HBC) is pleased to announce that it has finalized leases for seven new store locations in the Netherlands, in addition to the four locations previously announced. In aggregate, the lease agreements total approximately 141,800 m2 (1,526,000 sq. ft.) and include 10 Hudson’s Bay and a Saks OFF 5TH store in major markets. As previously announced by the Company, HBC intends to enter the Netherlands with up to 20 new stores over the next 2 years. HBC’s expansion into the Netherlands introduces two new exciting retail concepts to the Dutch market while leveraging the Company’s existing European business infrastructure.

Richard Baker, Governor and Executive Chairman of HBC, stated:
“We are very excited to announce these new locations in prime markets in the Netherlands for our Hudson’s Bay banner. The speed with which the leases are being agreed upon underscores the mutual willingness of the landlords, municipalities and HBC team to open the first stores, which we expect to occur in Q3 of 2017. In addition to bringing our exciting retail experiences to the Dutch customers, our entry will also create 2,500 store jobs and 2,500 construction jobs in the market. We look forward to announcing additional stores as we secure new locations.”

Jerry Storch, HBC’s Chief Executive Officer, commented:
“Combining exciting retail destinations with a best in class ecommerce platform is our main focus as we expand into the Netherlands. Our all-channel model will allow our customers to shop whenever, wherever and however they want. This, in combination with overall operational efficiencies and implementing best practices from our existing banners, will deliver a new, exciting experience for Dutch consumers. We are also making good progress on establishing our management structure and have already hired a number of very experienced Dutch executives into senior management positions.”

The Company expects to open Hudson’s Bay stores in the following locations:
HBC reached three lease agreements with a.s.r. Real Estate Investment Management for Utrechtsestraat 25-37 in Amersfoort, Grote Houtstraat 70 in Haarlem and Aalmarkt 22 in Leiden

Amersfoort, Utrechtsestraat 25-37
Amersfoort has an attractive historic center with a vast variety of shops. Built in 1934, the building has spectacular glass work in the ceiling and an impressive staircase, with entrances from the Utrechtsestraat and the Sint Jorisplein. It is located on the prime shopping street in Amersfoort. The Sint Jorisplein is an important access point with a parking garage of around 460 spaces. The building will be fully renovated before Hudson’s Bay opens its 11,000 m2 (118,000 sq. ft.) store for the people in Amersfoort and surroundings.

Haarlem, Grote Houtstraat 70
Haarlem is a well-known shopping and residential destination adjacent to Amsterdam, with a young and vibrant bar and restaurant scene. The historic department store of approximately 17,000 m2 (183,000 sq. ft.) is centrally located on the Grote Houtstraat, close to Gedempte Oude Gracht and the Gierstraat. The building will be renovated and transformed into a modern and attractive Hudson’s Bay.

Leiden, Aalmarkt 22
This monumental 12,500 m2 (135,000 sq. ft.) department store, located in the city center between the Aalmarkt street and the Breestraat, was built in 1930 and was completely renovated in 2014. Hudson’s Bay is an ideal anchor tenant to elevate the retail mix of the area. The basement includes a bike storage for 880 bicycles and can be used free of charge by the people of Leiden. The adjacent retail project Catharinasteeg will be completed in 2017.

Edwin van de Woestijne of a.s.r. REIM
“We are delighted with this innovative player in the Dutch retail market and we are looking forward to working together to improve the shopping landscape of Amersfoort, Haarlem and Leiden. Hudson’s Bay’s decision to enter a long-term commitment with a.s.r. demonstrates that our properties are in the right locations and that we are a strong retail partner.”

The Hague (Den Haag), Grote Marktstraat 48-50, Spuistraat 3-5
The building, owned by IEFC Berlage, is located in the heart of the prime shopping area in The Hague with entrances from the Grote Marktstraat and the Spuistraat. The building is undergoing a full renovation by IEF Capital, after which it will consist of five retail stores. Hudson’s Bay, with a store of 18,500 m2 (199,000 sq. ft.) will be the largest tenant.

Nechemja de Bruijn of IEF Capital stated:
“We see HBC’s entrance in the Dutch retail market as another confirmation that the prime locations in the Dutch cities are getting more and more popular, on par with many of the big cities in the world. We cordially welcome HBC to our retail complex in the vibrant heart of The Hague and look forward to the opening of the Hudson’s Bay store.”

Den Bosch, Schapenmarkt 2-4
The Company reached a lease agreement with Metroprop for Schapenmarkt 2-4 in Den Bosch. Den Bosch is a thriving city in the south of the Netherlands. The inner-city retail structure is a protected townscape and its heritage makes it an appealing and popular shopping destination. The building is a listed historical monument, curved along the shape of the street, and is located next to City Hall with a beautiful view from the top on the Sint-Jans Cathedral. The building will be transformed into a 9,300 m2 (100,000 sq. ft.) Hudson’s Bay store with direct access to the main shopping streets of Den Bosch.

Jos van de Mortel from Metroprop stated:
“We are very pleased that HBC has chosen this unique building for a Hudson’s Bay store in the Netherlands. The location has a rich history and is located in the city centre of Den Bosch. We are convinced that Hudson’s Bay is the perfect concept to enhance the historic attraction of Den Bosch.”The Company has also reached long-term lease agreements with CBRE Global Investors for Pensmarkt 8 in Den Bosch and Nieuwstraat 51-53 / Spiegelstraat 17 in Zwolle.

Den Bosch, Pensmarkt 8
The Pensmarkt is centrally located in the middle of the historical inner-city of Den Bosch across the Schapenmarkt, this unit of 1,600 m2 (17,000 sq. ft) will be part of the Hudson’s Bay at the Schapenmarkt. This is a true prime location which reflects HBC’s strategy to establish itself in key, high-traffic retail areas.

Zwolle, Nieuwstraat 51-53 / Spiegelstraat 17
Zwolle is a historic city located in the province of Overijssel. The availability of retail space in the dense city centre is scarce. Zwolle is expecting the arrival of a number of large international retailers in the next eighteen months which will make it even more attractive for customers. The arrival of the 12,000 m2 (129,000 sq. ft.) Hudson’s Bay store will further improve the success of Zwolle as shopping destination within the province of Overijssel.

Rik Eertink from CBRE Global Investors stated:
“Hudson’s Bay Company’s new department store format Hudson’s Bay is a unique long-term solution for respectively our prime inner-city locations in Zwolle and Den Bosch. The market entry of the Hudson’s Bay Company will positively shape the retail landscape in the Netherlands. I am very excited to welcome them as a tenant in our buildings and look forward to working together to make the banner a success in the Netherlands.”

Enschede, H.J. van Heekplein 85
The future 9,900 m2 (107,000 sq. ft.) Hudson’s Bay store will be located in the shopping heart of Enschede at the H.J. van Heekplein (H.J. van Heek plaza). Many national and international shopping chains are located in this popular area. Additionally, the ample parking facility under the plaza makes it the most important access point for shoppers. The property manager, Syntrus Achmea Real Estate & Finance, will refurbish the building to accommodate Hudsons’s Bay exciting store format.

Rene Vierkant of Syntrus Achmea Real Estate & Finance stated:
We are delighted with HBC as our new tenant in Enschede. We believe that a Hudson’s Bay department store will add something new and exciting in the local retail market. We are committed to the longevity and success of HBC in Enschede and are convinced that this is an ideal location as they look for key markets for their entry into the country.”

Over Hudson’s Bay Company
Hudson’s Bay Company is one of the fastest-growing department store retailers in the world, based on its successful formula of driving the performance of high quality stores and their all channel offerings, unlocking the value of real estate holdings and growing through acquisitions. Founded in 1670, HBC is the oldest company in North America. HBC’s portfolio today includes ten banners, in formats ranging from luxury to better department stores to off price fashion shopping destinations, with more than 460 stores and 66,000 employees around the world. In North America, HBC’s leading banners include Hudson’s Bay, Lord & Taylor, Saks Fifth Avenue, Gilt, and Saks OFF 5TH, along with Find @ Lord & Taylor and Home Outfitters. In Europe, its banners include GALERIA Kaufhof, the largest department store group in Germany, Belgium’s only department store group Galeria INNO, as well as Sport arena. HBC has significant investments in real estate joint ventures. It has partnered with Simon Property Group Inc. in the HBS Global Properties Joint Venture, which owns properties in the United States and Germany. In Canada, it has partnered with RioCan Real Estate Investment Trust in the RioCan-HBC Joint Venture.

Forward-Looking Statements
Certain statements made in this news release constitute forward-looking statements within the meaning of applicable securities laws, including, without limitation, statements regarding the Company’s plans to expand its European presence to the Netherlands by opening up to 20 stores over the next 24 months, the Company’s expectation that such stores will launch in the summer 2017 and operate under the Hudson’s Bay and Saks OFF 5TH banners, long term leases for up to 20 store locations will be finalized in the near future, and the benefits that are expected to result from the expansion into the Netherlands, including the creation of new jobs. Often but not always, forward-looking statements can be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “believe”, “estimate”, “plan”, “could”, “should”, “would”, “outlook”, “forecast”, “anticipate”, “foresee”, “continue” or the negative of these terms or variations of them or similar terminology.

Although HBC believes that the forward-looking statements in this news release are based on information and assumptions that are current, reasonable and complete, these statements are by their nature subject to a number of factors and risks that could cause actual results to differ materially from management’s expectations and plans as set forth in such forward looking statements for a variety of reasons. Some of the factors and risks – many of which are beyond HBC’s control and the effects of which can be difficult to predict – include, among others – (a) the risk that HBC is unable to finalize long term leases for up to 20 locations in the Netherlands, (b) the risk that the expansion into the Netherlands requires capital expenditures in excess of those currently anticipated and/or more than 24 months to complete, (c) the risk of introducing new brands into new markets and of doing business abroad, (d) the risk that the anticipated benefits from the expansion into the Netherlands cannot be realized, (e) credit, market, currency, operational, liquidity and funding risks generally, including changes in economic and geopolitical conditions, interest rates or tax rates, and (f) risks and uncertainties relating to information management, technology, supply chain, product safety, changes in law, competition, seasonality, commodity price and business.

HBC cautions that the foregoing list of important factors and assumptions is not exhaustive and other factors could also adversely affect its results. For more information on the risks, uncertainties and assumptions that could cause HBC’s actual results to differ from current expectations, please refer to the “Risk Factors” section of HBC’s Annual Information Form dated April 28, 2016, as well as HBC’s other public filings, available at www.sedar.com and at www.hbc.com.

The forward-looking statements contained in this news release describe HBC’s expectations at the date of this news release and, accordingly, are subject to change after such date. Except as may be required by applicable Canadian securities laws, HBC does not undertake any obligation to update or revise any forward-looking statements contained in this news release, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on these forward-looking statements.

MEDIA CONTACTS:

Citigate First Financial
Marieke Heringa
+31-6-11327533
marieke.heringa@citigateff.nl

Ingrid Prins
+31-6-51592484
ingrid.prins@citigateff.nl

Hudson’s Bay Company
Andrew Blecher
+1-212-391-3179
andrew.blecher@hbc.com

Gerd Koslowski
+49-(0)221-223-5595
gerd.koslowski@kaufhof.de

Source: HBC

HUDSON’S BAY COMPANY KONDIGT ZEVEN NIEUWE LOCATIES AAN IN NEDERLAND

TORONTO en AMSTERDAM, 2016-Jul-13 — /EPR Retail News/ — Hudson’s Bay Company (“HBC” of “de onderneming”) (TSX: HBC) is verheugd aan te kondigen dat ze in Nederland nieuwe huurovereenkomsten voor zeven nieuwe locaties hebben getekend, dit in aanvulling op de eerder aangekondigde vier locaties. In totaal beslaan de contracten 141.800 m2 en bestaan ze uit tien Hudson’s Bay winkels en een Saks OFF 5TH winkel in grote steden. Zoals HBC eerder bekendmaakte, is de onderneming voornemens de Nederlandse markt te betreden en er de komende twee jaar tot 20 nieuwe warenhuizen te openen. HBC zal bij deze uitbreiding naar de Nederlandse markt gebruik maken van haar bestaande Europese infrastructuur en twee nieuwe winkelformules introduceren.

Richard Baker, Governor en Executive Chair van HBC:
“We zijn erg enthousiast om deze nieuwe locaties op A1 locaties voor de Hudson’s Bay formule in Nederland aan te kondigen. De snelheid waarin we overeenstemming bereiken over de contracten, onderstreept de wederzijdse bereidheid van verhuurders, gemeenten en het HBCteam om de eerste winkels naar verwachting in het derde kwartaal van 2017 te kunnen openen. Naast dat we de Nederlandse klant kennis willen laten maken met onze bijzondere winkelbeleving, zal onze komst ook 2,500 banen creëren in de winkels en nog eens 2,500 door bouwactiviteiten. We kijken er naar uit om binnenkort nog meer winkels aan te kondigen omdat we doorgaan met het zekerstellen van nieuwe locaties.”

Jerry Storch, HBC´s Chief Executive Officer:
“Het belangrijkste doel voor onze uitbreiding in Nederland is om onze bijzondere winkelbestemmingen met een ‘best in class’ e-commerce platform te combineren. Ons allchannel model maakt het mogelijk dat onze klanten altijd en overal kunnen winkelen. In combinatie met operationele efficiëntie op alle fronten en het implementeren van ‘best practices’ uit onze bestaande formules, zal dit leiden tot een nieuwe winkelbelevenis voor onze Nederlandse klanten. We maken ook goede voortgang met het vormgeven van de management structuur. Er zijn een aantal zeer ervaren Nederlandse executives aangenomen voor senior management posities.”

De onderneming verwacht om Hudson’s Bay winkels te openen op de volgende locaties:
HBC heeft drie huurovereenkomsten gesloten met a.s.r. Vastgoed Vermogensbeheer voor Utrechtsestraat 25-37 in Amersfoort, Grote Houtstraat 70 in Haarlem en Aalmarkt 22 in Leiden.

Amersfoort, Utrechtsestraat 25-37
Amersfoort heeft een sfeervolle historische binnenstad met een grote diversiteit aan winkels. Het gebouw dat dateert uit 1934, heeft een spectaculaire lichtkoepel en een prachtige trappartij met ingangen aan de Utrechtsestraat en het Sint Jorisplein. Het warenhuis ligt aan de drukste A1 winkelstraat van Amersfoort. Het Sint Jorisplein is een belangrijk bronpunt met een parkeergarage met 460 plaatsen. Het gebouw wordt volledig gerenoveerd voordat Hudson’s Bay haar warenhuis van 11.000 m2 opent voor de mensen uit Amersfoort en omgeving.

Haarlem, Grote Houtstraat 70
Haarlem is een bekende winkel- en woonstad nabij Amsterdam met levendige horeca. Het historische warenhuis van ongeveer 17.000 m2 is centraal gelegen aan de Grote Houtstraat, nabij de Gedempte Oude Gracht en de Gierstraat. Het gebouw zal worden gerenoveerd om een eigentijdse aantrekkelijke Hudson’s Bay te realiseren.

Leiden, Aalmarkt 22
Dit monumentale warenhuis van 12.500 m2 in de binnenstad van Leiden tussen de Aalmarkt en de Breestraat, is in 1930 gebouwd en in 2014 volledig gerenoveerd. Hudson’s Bay is een belangrijke huurder (anchor tenant) die de retailmix in de binnenstad naar een hoger niveau tilt. De kelder is voorzien van een openbare fietsenstalling met 880 plaatsen en is gratis te gebruiken door alle Leidenaren. Het naastgelegen winkelproject Catharinasteeg zal in 2017 worden opgeleverd.

Edwin van de Woestijne van a.s.r. Vastgoed Vermogensbeheer
“Wij zijn blij met Hudson’s Bay als vernieuwende speller op de Nederlandse retailmarkt. We zijn er van overtuigd dat dit aantrekkelijke warenhuis bijdraagt aan de aantrekkingskracht van de binnensteden als winkelbestemming voor Amersfoort, Haarlem en Leiden. Het besluit van Hudson’s Bay om een langjarige samenwerking met a.s.r. aan te gaan, geeft aan dat we op de juiste locaties zitten en een sterke vastgoedpartner in retail zijn.”

Den Haag, Grote Marktstraat 48-50, Spuistraat 3-5
Het door IEFC Berlage gehouden gebouw ligt in het hart van het A1-winkelgebied in Den Haag met entrees aan zowel de Grote Marktstraat en de Spuistraat. Het gebouw wordt momenteel door IEF Capital volledig gerenoveerd en zal in de nieuwe situatie vijf winkelunits huisvesten waarvan Hudson’s Bay, met een winkel van 18.500 m2 de grootste huurder zal zijn.

Nechemja de Bruijn van IEF Capital: “Wij zien de komst van HBC naar de Nederlandse retailmarkt wederom als een bevestiging dat de A-1 winkelmarkt in de grote steden in Nederland aan populariteit wint en zich steeds meer kan meten met de grote steden in de wereld. Wij verwelkomen HBC van harte in ons winkelcomplex in het bruisende hart van Den Haag en kijken erg uit naar de opening van de Hudson’s Bay winkel.

Den Bosch, Schapenmarkt 2-4
HBC heeft een huurovereenkomst gesloten met Metroprop voor de Schapenmarkt 2-4 in Den Bosch. Den Bosch is een welvarende stad in het zuiden van Nederland. Het binnenstedelijke winkelgebied is een beschermd stadsgezicht en het wordt hierdoor een aantrekkelijke en populaire winkelbestemming. Het gebouw staat op de lijst van historische monumenten en vormt een geheel met de gebogen straat. Het bevindt zich naast het gemeentehuis en vanaf het dak heeft de bezoeker een prachtig uitzicht op de Sint-Jans Kathedraal. Het gebouw wordt getransformeerd in een Hudson’s Bay winkel van 9,300 m2 met directe doorgangen naar de belangrijkste winkelstraten van Den Bosch.

Jos van de Mortel van Metroprop:
“Wij zijn zeer verheugd dat HBC dit unieke pand gekozen heeft voor een Hudson’s Bay winkel in Nederland. De locatie heeft een rijke historie en bevindt zich in het centrum van Den Bosch. Wij zijn er van overtuigd dat Hudson’s Bay het perfecte concept is om de historische aantrekkingskracht van Den Bosch te versterken.”

HBC heeft lange termijn huurovereenkomsten gesloten met CBRE Global Investors voor Pensmarkt 8 in Den Bosch en Nieuwstraat 51-53 / Spiegelstraat 17 in Zwolle.

Den Bosch, Pensmarkt 8
De Pensmarkt ligt centraal in het midden van het historische centrum van Den Bosch, tegenover de Schapenmarkt, deze unit van 1.600 m2 vormt dan ook een onderdeel van de Hudson’s Bay op de Schapenmarkt 2-4. Dit is een echte A1 locatie wat de strategie van HBC weergeeft om zich te vestigen in drukbezochte kern winkelgebieden.

Zwolle, Nieuwstraat 51-53 / Spiegelstraat 17
Zwolle is een historische stad in de provincie Overijssel. De beschikbaarheid van winkelruimte in de dichtbevolkte stad is schaars. De komst van een aantal grote internationale retailers in Zwolle in de komende 18 maanden, zal de aantrekkelijkheid van de stad vergroten. De opening van de Hudson’s Bay winkel van 12.000 m2 zal het succes van Zwolle als winkelbestemming voor de provincie Overijssel verder versterken.

Rik Eertink van CBRE Global Investors:
“De nieuwe warenhuis formule Hudson’s Bay is een unieke lange termijn oplossing voor onze toplocaties in de centra van Zwolle en Den Bosch. De komst van Hudson’s Bay Company in de Nederlandse markt zal een positieve invloed hebben op het retaillandschap. Ik ben zeer verheugd om hen als huurder van onze gebouwen te verwelkomen en kijk uit naar de samenwerking om Hudson’s Bay succesvol te maken in Nederland.”

Enschede, H.J. van Heekplein 85
De toekomstige Hudson’s Bay winkel van 9,900 m2 wordt gevestigd in het winkelhart van Enschede aan het H.J. van Heekplein. Veel nationale en internationale winkelketens zijn gevestigd in dit populaire gebied. De ruime parkeerfaciliteit onder het plein zorgt er tevens voor dat het Van Heekplein het belangrijkste bronpunt is voor het winkelend publiek. Investment manager Syntrus Achmea Real Estate & Finance zal het gebouw aanpassen om de winkelformule Hudson’s Bay optimaal te kunnen huisvesten.

René Vierkant van Syntrus Achmea Real Estate & Finance:
”Het doet ons genoegen om HBC te verwelkomen als onze nieuwe huurder in Enschede. Wij geloven dat Hudson’s Bay iets nieuws en spannends gaat toevoegen aan de lokale retailmarkt. Wij zijn gecommitteerd voor het lange termijn succes van HBC in Enschede en wij zijn er van overtuigd dat dit een perfecte plek is omdat HBC kernplekken uitkiest voor hun entree in Nederland.”

Over Hudson’s Bay Company
Hudson’s Bay Company is een van de snelst groeiende warenhuisketens in de wereld. Het succes is gebaseerd op een formule die een combinatie biedt van sturen op de prestaties van kwalitatief hoogwaardige vestigingen, een all-channel aanbod van fysiek en online, het realiseren van de waarde van vastgoedbezit en groei door acquisities. HBC, opgericht in 1670, is de oudste onderneming in Noord-Amerika. De portfolio van HBC omvat tien formules, van luxueuze warenhuizen tot betere warenhuizen en discountformules, met in totaal wereldwijd meer dan 460 vestigingen en 66.000 medewerkers. In Noord Amerika behoren Hudson’s Bay, Lord & Taylor, Saks Fifth Avenue, Gilt, en Saks OFF 5TH, samen met Find @ Lord & Taylor en Home Outfitters tot de leidende ketens van HBC. In Europa behoren GALERIA Kaufhof, de grootste warenhuisketen van Duitsland, Galeria INNO, de enige warenhuisketen in België, en Sportarena, tot HBC. HBC heeft significante investeringen in vastgoed joint ventures. Met Simon Property Group Inc. heeft HBC de HBS Global Properties Joint Venture, die vastgoed in bezit heeft in de Verenigde Staten en in Duitsland. In Canada werkt HBC met RioCan Real Estate Investment Trust samen in de RioCan-HBC Joint Venture.

Forward-Looking Statements
Certain statements made in this news release constitute forward-looking statements within the meaning of applicable securities laws, including, without limitation, statements regarding the Company’s plans to expand its European presence to the Netherlands by opening up to 20 stores over the next 24 months, the Company’s expectation that such stores will launch in the summer 2017 and operate under the Hudson’s Bay and Saks OFF 5TH banners, long term leases for up to 20 store locations will be finalized in the near future, and the benefits that are expected to result from the expansion into the Netherlands, including the creation of new jobs. Often but not always, forward-looking statements can be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “believe”, “estimate”, “plan”, “could”, “should”, “would”, “outlook”, “forecast”, “anticipate”, “foresee”, “continue” or the negative of these terms or variations of them or similar terminology.

Although HBC believes that the forward-looking statements in this news release are based on information and assumptions that are current, reasonable and complete, these statements are by their nature subject to a number of factors and risks that could cause actual results to differ materially from management’s expectations and plans as set forth in such forward-looking statements for a variety of reasons. Some of the factors and risks – many of which are beyond HBC’s control and the effects of which can be difficult to predict – include, among others – (a) the risk that HBC is unable to finalize long term leases for up to 20 locations in the Netherlands, (b) the risk that the expansion into the Netherlands requires capital expenditures in excess of those currently anticipated and/or more than 24 months to complete, (c) the risk of introducing new brands into new markets and of doing business abroad, (d) the risk that the anticipated benefits from the expansion into the Netherlands cannot be realized, (e) credit, market, currency, operational, liquidity and funding risks generally, including changes in economic and geopolitical conditions, interest rates or tax rates, and (f) risks and uncertainties relating to information management, technology, supply chain, product safety, changes in law, competition, seasonality, commodity price and business.

HBC cautions that the foregoing list of important factors and assumptions is not exhaustive and other factors could also adversely affect its results. For more information on the risks, uncertainties and assumptions that could cause HBC’s actual results to differ from current expectations, please refer to the “Risk Factors” section of HBC’s Annual Information Form dated April 28, 2016, as well as HBC’s other public filings, available at www.sedar.com and at www.hbc.com.

The forward-looking statements contained in this news release describe HBC’s expectations at the date of this news release and, accordingly, are subject to change after such date. Except as may be required by applicable Canadian securities laws, HBC does not undertake any obligation to update or revise any forward-looking statements contained in this news release, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on these forward-looking statements.

Dit bericht is een vertaling van de oorspronkelijke Engelse versie. In geval van interpretatieverschillen prevaleert de oorspronkelijke Engelse tekst.

MEDIA CONTACTEN:

Citigate First Financial Marieke Heringa
+31-6-11327533
marieke.heringa@citigateff.nl

Ingrid Prins
+31-6-51592484
ingrid.prins@citigateff.nl

Hudson’s Bay Company
Andrew Blecher
+1-212-391-3179
andrew.blecher@hbc.com

Gerd Koslowski
+49-(0)221-223-5595
gerd.koslowski@kaufhof.de

Source: HBC

Hudson’s Bay Company announces the retirement of its Vice Chair Bonnie Brooks on December 31, 2016

TORONTO & NEW YORK, 2016-Jul-07 — /EPR Retail News/ — Hudson’s Bay Company (“HBC”) today announced that Bonnie Brooks, Vice Chair, HBC will retire on December 31, 2016. Brooks’s retirement culminates an illustrious 40-year career in fashion retail and marketing, including more than eight years at HBC. From 2008-2012 she was the first female CEO and President of Hudson’s Bay during the transformation of the banner in Canada.

“It has been a privilege to work with the team at Hudson’s Bay Company, a true Company of Adventurers. We have seen tremendous change since I joined the Company, and I am incredibly proud of what we accomplished together. I look forward to watching the continued success of HBC,” stated Brooks.

Brooks’s career included 12 years at Holt Renfrew where she led the retailer’s merchandising and marketing functions, followed by 11 years in Hong Kong and the reinvention of the Lane Crawford department stores in Asia. In 2008, Brooks returned to Canada to join HBC as CEO and President of Hudson’s Bay, later becoming President of the Department Store Group in 2012 with the integration of Lord & Taylor. Publicly and professionally recognized for her many roles in fashion retail, she was the Parsons School of Design Honouree in 2013 in NYC and was awarded the Ivey Business Leader of the Year in Canada in 2014.

“Bonnie has been a very strong leader who, from day one, was integral to the reinvention of Hudson’s Bay,” stated Richard Baker, Governor and Executive Chairman, HBC. “We are extremely grateful for her contributions to the company and wish her well in her retirement.”

About Hudson’s Bay Company

Hudson’s Bay Company is one of the fastest-growing department store retailers in the world, based on its successful formula of driving the performance of high quality stores and their all-channel offerings, unlocking the value of real estate holdings and growing through acquisitions. Founded in 1670, HBC is the oldest company in North America. HBC’s portfolio today includes ten banners, in formats ranging from luxury to better department stores to off price fashion shopping destinations, with more than 460 stores and 66,000 employees around the world. In North America, HBC’s leading banners include Hudson’s Bay, Lord & Taylor, Saks Fifth Avenue, Gilt, and Saks OFF 5TH, along with Find @ Lord & Taylor and Home Outfitters. In Europe, its banners include GALERIA Kaufhof, the largest department store group in Germany, Belgium’s only department store group Galeria INNO, as well as Sportarena. HBC has significant investments in real estate joint ventures. It has partnered with Simon Property Group Inc. in the HBS Global Properties Joint Venture, which owns properties in the United States and Germany. In Canada, it has partnered with RioCan Real Estate Investment Trust in the RioCan-HBC Joint Venture.

Contact:

Hudson’s Bay Company
Tiffany Bourré
Director, External Communications
905-595-7184
tiffany.bourre@hbc.com

Source: Hudson’s Bay Company

Hudson’s Bay Company expands its European presence with plans for up to 20 new stores in the Netherlands over the next 24 months

  • Canada’s premium department store banner Hudson’s Bay and off-price banner Saks OFF 5TH expected to launch first stores in summer 2017 utilizing HBC’s existing European platform
  • Plans to open up to 20 stores over the next 24 months
  • Expansion is expected to create approximately 2,500 store jobs and 2,500 construction jobs in key Dutch cities
  • Anticipates 300 million Euros in capital investments, with majority to be funded by landlords

TORONTO & COLOGNE, Germany & AMSTERDAM, 2016-May-23 — /EPR Retail News/ — Hudson’s Bay Company (“HBC” or the “Company”) (TSX:HBC) is pleased to announce that it is expanding its European presence with plans for up to 20 new stores in the Netherlands over the next 24 months. The Company has finalized and is in the process of finalizing long term leases for select, sought after locations. The first stores are expected to launch in the summer of 2017 and operate under the Hudson’s Bay banner as well as the Saks OFF 5TH banner. The expansion into the Netherlands will build on HBC Europe’s existing infrastructure and will utilize the same platforms such as information technology, procurement and digital support. Build out of the stores will be funded primarily by the relevant landlords and HBC will invest in the operational aspects of the stores including merchandising and employees.

Richard Baker, Governor and Chairman of HBC stated, “We are very pleased to introduce our Canadian Hudson’s Bay banner, one of the world’s most exciting department stores, to the Netherlands. Our acquisition of GALERIA in 2015 established our European headquarters in Cologne and a platform for future organic growth. Expansion intothe Netherlands is a natural extension of our existing presence in Belgium as well as our planned entry into Luxembourg and will complete our presence in all of the Benelux countries. We were able to capitalize on an opportunity to select sought after, high street real estate locations. Canada and The Netherlands have a long, storied history built on collaboration and cultural respect. This is an extremely compelling opportunity to invest in the Dutch market, leverage the iconic Hudson’s Bay brand and introduce what will be the only nationwide all-channel premium department store.”

Jerry Storch, HBC’s Chief Executive Officer, commented, “We believe that in the Dutch retail market there is unmet demand in both the premium department store and off-price segments. The Hudson’s Bay and Saks OFF 5TH banners, tailored for the Dutch market, will introduce our all-channel retail model to the Netherlands with a combination of exciting retail destinations and a best in class ecommerce presence. The situation is similar to the one we capitalized on in Canada with Hudson’s Bay. We introduced a new, innovative format offering relevant brands and excellent service. We will use our proven playbook based on our success with fantastic department stores combined with local management expertise to create innovative retail destinations.”

Olivier Van den Bossche, Head of HBC’s European department store business, said, “We are thrilled about the opportunity to introduce Hudson’s Bay and Saks OFF 5TH to the Netherlands through our strategy of targeted organic growth. Our team of European retail experts has a strong understanding of the Dutch landscape. Our expansion is expected to result in the creation of over 2,500 store jobs, 2,500 construction jobs and 300 million Euros in capital investments, the majority of which will be funded through landlord incentives. We are committed to the Dutch marketplace and look forward to partnering with local governments to create exciting retail destinations.”

HBC was advised by Stibbe and Stikeman Elliott LLP on legal matters and by Eric Zorn, Chairman of ESZ LLC, anInternational Real Estate Consulting Group, along with one of his partners, Robert Bray, on real estate matters.

About Hudson’s Bay Company
Hudson’s Bay Company is one of the fastest-growing department store retailers in the world, based on its successful formula of driving the performance of high quality stores and their all-channel offerings, unlocking the value of real estate holdings and growing through acquisitions. Founded in 1670, HBC is the oldest company inNorth America. HBC’s portfolio today includes ten banners, in formats ranging from luxury to better department stores to off price fashion shopping destinations, with more than 460 stores and 66,000 employees around the world.

In North America, HBC’s leading banners include Hudson’s Bay, Lord & Taylor, Saks Fifth Avenue, Gilt, and Saks OFF 5TH, along with Find @ Lord & Taylor and Home Outfitters. In Europe, its banners include GALERIA Kaufhof, the largest department store group in Germany, Belgium’s only department store group Galeria INNO, as well asSportarena.

HBC has significant investments in real estate joint ventures. It has partnered with Simon Property Group Inc. in theHBS Global Properties Joint Venture, which owns properties in the United States and Germany. In Canada, it has partnered with RioCan Real Estate Investment Trust in the RioCan-HBC Joint Venture.

Forward-Looking Statements

Certain statements made in this news release constitute forward-looking statements within the meaning of applicable securities laws, including, without limitation, statements regarding the Company’s plans to expand its European presence to the Netherlands by opening up to 20 stores over the next 24 months, the Company’s expectation that such stores will launch in the summer 2017 and operate under the Hudson’s Bay and Saks OFF 5TH banners, long term leases for up to 20 store locations will be finalized in the near future, the build-out of the stores will be primarily funded by the relevant landlords through landlord incentives, and the benefits that are expected to result from the expansion into the Netherlands, including the creation of new jobs. Often but not always, forward-looking statements can be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “believe”, “estimate”, “plan”, “could”, “should”, “would”, “outlook”, “forecast”, “anticipate”, “foresee”, “continue” or the negative of these terms or variations of them or similar terminology.

Although HBC believes that the forward-looking statements in this news release are based on information and assumptions that are current, reasonable and complete, these statements are by their nature subject to a number of factors and risks that could cause actual results to differ materially from management’s expectations and plans as set forth in such forward-looking statements for a variety of reasons. Some of the factors and risks – many of which are beyond HBC’s control and the effects of which can be difficult to predict – include, among others – (a) the risk that HBC is unable to finalize long term leases for up to 20 select, sought after store locations in the Netherlands, (b) the risk that the expansion into the Netherlands requires capital expenditures in excess of those currently anticipated and/or more than 24 months to complete, (c) the risk of introducing new brands into new markets and of doing business abroad, (d) the risk that the anticipated benefits from the expansion into the Netherlands cannot be realized, (e) credit, market, currency, operational, liquidity and funding risks generally, including changes in economic and geopolitical conditions, interest rates or tax rates, and (f) risks and uncertainties relating to information management, technology, supply chain, product safety, changes in law, competition, seasonality, commodity price and business.

HBC cautions that the foregoing list of important factors and assumptions is not exhaustive and other factors could also adversely affect its results. For more information on the risks, uncertainties and assumptions that could cause HBC’s actual results to differ from current expectations, please refer to the “Risk Factors” section of HBC’s Annual Information Form dated April 28, 2016, as well as HBC’s other public filings, available at www.sedar.com and at www.hbc.com.

The forward-looking statements contained in this news release describe HBC’s expectations at the date of this news release and, accordingly, are subject to change after such date. Except as may be required by applicable Canadian securities laws, HBC does not undertake any obligation to update or revise any forward-looking statements contained in this news release, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on these forward-looking statements.

INVESTOR RELATIONS:
Kathleen de Guzman, 646-807-0148
kathleen.deguzman@hbc.com
or
Elliot Grundmanis, 416-256-6732
elliot.grundmanis@hbc.com
or
MEDIA CONTACTS:
Andrew Blecher, 212-391-3179
andrew.blecher@hbc.com
or
Tiffany Bourré, 905-595-7184
tiffany.bourre@hbc.com

Source: Hudson’s Bay Company

News Provided by Acquire Media

Hudson’s Bay Company expands European presence with plans for up to 20 new stores in the Netherlands

  • Canada’s premium department store banner Hudson’s Bay and off-price banner Saks OFF 5TH expected to launch first stores in summer 2017 utilizing HBC’s existing European platform
  • Plans to open up to 20 stores over the next 24 months
  • Expansion is expected to create approximately 2,500 store jobs and 2,500 construction jobs in key Dutch cities
  • Anticipates 300 million Euros in capital investments, with majority to be funded by landlords

TORONTO & COLOGNE, Germany & AMSTERDAM, 2016-May-17 — /EPR Retail News/ — Hudson’s Bay Company (“HBC” or the “Company”) (TSX:HBC) is pleased to announce that it is expanding its European presence with plans for up to 20 new stores in the Netherlands over the next 24 months. The Company has finalized and is in the process of finalizing long term leases for select, sought after locations. The first stores are expected to launch in the summer of 2017 and operate under the Hudson’s Bay banner as well as the Saks OFF 5TH banner. The expansion into the Netherlands will build on HBC Europe’s existing infrastructure and will utilize the same platforms such as information technology, procurement and digital support. Build out of the stores will be funded primarily by the relevant landlords and HBC will invest in the operational aspects of the stores including merchandising and employees.

Richard Baker, Governor and Chairman of HBC stated, “We are very pleased to introduce our Canadian Hudson’s Bay banner, one of the world’s most exciting department stores, to the Netherlands. Our acquisition of GALERIA in 2015 established our European headquarters in Cologne and a platform for future organic growth. Expansion intothe Netherlands is a natural extension of our existing presence in Belgium as well as our planned entry into Luxembourg and will complete our presence in all of the Benelux countries. We were able to capitalize on an opportunity to select sought after, high street real estate locations. Canada and The Netherlands have a long, storied history built on collaboration and cultural respect. This is an extremely compelling opportunity to invest in the Dutch market, leverage the iconic Hudson’s Bay brand and introduce what will be the only nationwide all-channel premium department store.”

Jerry Storch, HBC’s Chief Executive Officer, commented, “We believe that in the Dutch retail market there is unmet demand in both the premium department store and off-price segments. The Hudson’s Bay and Saks OFF 5TH banners, tailored for the Dutch market, will introduce our all-channel retail model to the Netherlands with a combination of exciting retail destinations and a best in class ecommerce presence. The situation is similar to the one we capitalized on in Canada with Hudson’s Bay. We introduced a new, innovative format offering relevant brands and excellent service. We will use our proven playbook based on our success with fantastic department stores combined with local management expertise to create innovative retail destinations.”

Olivier Van den Bossche, Head of HBC’s European department store business, said, “We are thrilled about the opportunity to introduce Hudson’s Bay and Saks OFF 5TH to the Netherlands through our strategy of targeted organic growth. Our team of European retail experts has a strong understanding of the Dutch landscape. Our expansion is expected to result in the creation of over 2,500 store jobs, 2,500 construction jobs and 300 million Euros in capital investments, the majority of which will be funded through landlord incentives. We are committed to the Dutch marketplace and look forward to partnering with local governments to create exciting retail destinations.”

HBC was advised by Stibbe and Stikeman Elliott LLP on legal matters and by Eric Zorn, Chairman of ESZ LLC, anInternational Real Estate Consulting Group, along with one of his partners, Robert Bray, on real estate matters.

About Hudson’s Bay Company
Hudson’s Bay Company is one of the fastest-growing department store retailers in the world, based on its successful formula of driving the performance of high quality stores and their all-channel offerings, unlocking the value of real estate holdings and growing through acquisitions. Founded in 1670, HBC is the oldest company inNorth America. HBC’s portfolio today includes ten banners, in formats ranging from luxury to better department stores to off price fashion shopping destinations, with more than 460 stores and 66,000 employees around the world.

In North America, HBC’s leading banners include Hudson’s Bay, Lord & Taylor, Saks Fifth Avenue, Gilt, and Saks OFF 5TH, along with Find @ Lord & Taylor and Home Outfitters. In Europe, its banners include GALERIA Kaufhof, the largest department store group in Germany, Belgium’s only department store group Galeria INNO, as well asSportarena.

HBC has significant investments in real estate joint ventures. It has partnered with Simon Property Group Inc. in theHBS Global Properties Joint Venture, which owns properties in the United States and Germany. In Canada, it has partnered with RioCan Real Estate Investment Trust in the RioCan-HBC Joint Venture.

Forward-Looking Statements

Certain statements made in this news release constitute forward-looking statements within the meaning of applicable securities laws, including, without limitation, statements regarding the Company’s plans to expand its European presence to the Netherlands by opening up to 20 stores over the next 24 months, the Company’s expectation that such stores will launch in the summer 2017 and operate under the Hudson’s Bay and Saks OFF 5TH banners, long term leases for up to 20 store locations will be finalized in the near future, the build-out of the stores will be primarily funded by the relevant landlords through landlord incentives, and the benefits that are expected to result from the expansion into the Netherlands, including the creation of new jobs. Often but not always, forward-looking statements can be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “believe”, “estimate”, “plan”, “could”, “should”, “would”, “outlook”, “forecast”, “anticipate”, “foresee”, “continue” or the negative of these terms or variations of them or similar terminology.

Although HBC believes that the forward-looking statements in this news release are based on information and assumptions that are current, reasonable and complete, these statements are by their nature subject to a number of factors and risks that could cause actual results to differ materially from management’s expectations and plans as set forth in such forward-looking statements for a variety of reasons. Some of the factors and risks – many of which are beyond HBC’s control and the effects of which can be difficult to predict – include, among others – (a) the risk that HBC is unable to finalize long term leases for up to 20 select, sought after store locations in the Netherlands, (b) the risk that the expansion into the Netherlands requires capital expenditures in excess of those currently anticipated and/or more than 24 months to complete, (c) the risk of introducing new brands into new markets and of doing business abroad, (d) the risk that the anticipated benefits from the expansion into the Netherlands cannot be realized, (e) credit, market, currency, operational, liquidity and funding risks generally, including changes in economic and geopolitical conditions, interest rates or tax rates, and (f) risks and uncertainties relating to information management, technology, supply chain, product safety, changes in law, competition, seasonality, commodity price and business.

HBC cautions that the foregoing list of important factors and assumptions is not exhaustive and other factors could also adversely affect its results. For more information on the risks, uncertainties and assumptions that could cause HBC’s actual results to differ from current expectations, please refer to the “Risk Factors” section of HBC’s Annual Information Form dated April 28, 2016, as well as HBC’s other public filings, available at www.sedar.com and at www.hbc.com.

The forward-looking statements contained in this news release describe HBC’s expectations at the date of this news release and, accordingly, are subject to change after such date. Except as may be required by applicable Canadian securities laws, HBC does not undertake any obligation to update or revise any forward-looking statements contained in this news release, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on these forward-looking statements.

INVESTOR RELATIONS:
Kathleen de Guzman, 646-807-0148
kathleen.deguzman@hbc.com
or
Elliot Grundmanis, 416-256-6732
elliot.grundmanis@hbc.com
or
MEDIA CONTACTS:
Andrew Blecher, 212-391-3179
andrew.blecher@hbc.com
or
Tiffany Bourré, 905-595-7184
tiffany.bourre@hbc.com

Source: Hudson’s Bay Company

News Provided by Acquire Media

Hudson’s Bay Company opens best-in-class robotic retail technology distribution center in Pottsville, Pennsylvania

  • New DC Enhances HBC’s All-Channel Offering to Better Serve Consumers and Drive Continued Digital Growth
  • Creates More Than 200 New Jobs in Pennsylvania
  • Investment in Innovative Robotic Systems Positions HBC at the Forefront of Fulfillment Distribution Technology

TORONTO, 2016-May-03 — /EPR Retail News/ — Hudson’s Bay Company (HBC) is pleased to announce it will open a new state-of-the-art, all-channel fulfilment distribution center (DC) in Pottsville, Pennsylvania on July 1, 2016. Consistent with HBC’s industry-leading digital growth strategy, the DC will utilize highly innovative robotic technology to enhance the Company’s extensive all-channel retailing capabilities.

HBC plans to open the 450,000 sq. ft. Pottsville facility through a phased approach, expanding to 617,500 sq. ft. by January 2017. The DC will run best-in-class robotic retail technology that is approximately three-times faster than the typical technology utilized in e-commerce DCs. This will enable HBC to reduce costs while improving output volume and accuracy. The new DC will support all e-commerce fulfillment for HBC’s Lord & Taylor and Saks OFF 5TH department store banners.

“At HBC, we are laser-focused on our all-channel strategy, and this investment leapfrogs us to the forefront of internet distribution technology,” said Jerry Storch, HBC’s Chief Executive Officer. “As we execute on our digital strategy, we continue to invest in innovation that enables us to serve our consumers seamlessly, lead the evolution of trends in the retail industry, and expand our business which creates new job opportunities and investment in the community.”

The Pottsville DC will house corporate offices, a photo studio and a warehouse. It will initially have approximately 600 positions, which includes the creation of more than 200 new jobs in the City of Pottsville as well as approximately 390 positions that will move from the Company’s existing Wilkes-Barre, PA DC. Following the Pottsville DC opening, the Wilkes-Barre facility will continue to employ approximately 750 people and will focus on supporting the retail operations of the Lord & Taylor, Saks, and Saks OFF 5TH banners. There will be a total of approximately 1,350 positions between the two facilities in the state of Pennsylvania.

Pennsylvania Governor Tom Wolf said, “HBC’s decision to operate an additional distribution center in Pennsylvania, which will create hundreds of additional jobs, is a testament to our State’s highly dedicated workforce and an important reflection of critical economic progress. We are delighted to work with HBC to better serve its customers and accelerate its growth.” “We are grateful to Governor Wolf and the Governor’s Action Team, and excited to become part of the Pottsville community,” added Storch.

Following the opening of the Pottsville facility, HBC plans to introduce the technology to its Scarborough, Ontario DC this fall, making it the only company in Canada to utilize the cutting-edge systems. This is expected to result in improved productivity and throughput, as well as increased storage space, without any reduction to full-time staff.

About Hudson’s Bay Company
Hudson’s Bay Company is one of the fastest-growing department store retailers in the world, based on its successful formula of driving the performance of high quality stores and their all-channel offerings, unlocking the value of real estate holdings and growing through acquisitions. Founded in 1670, HBC is the oldest company in North America. HBC’s portfolio today includes ten banners, in formats ranging from luxury to better department stores to off price fashion shopping destinations, with more than 460 stores and 66,000 employees around the world.

In North America, HBC’s leading banners include Hudson’s Bay, Lord & Taylor, Saks Fifth Avenue, Gilt, and Saks OFF 5TH, along with Find @ Lord & Taylor and Home Outfitters. In Europe, its banners include GALERIA Kaufhof, the largest department store group in Germany, Belgium’s only department store group Galeria INNO, as well as Sportarena.

HBC has significant investments in real estate joint ventures. It has partnered with Simon Property Group Inc. in the HBS Global Properties Joint Venture, which owns properties in the United States and Germany. In Canada, it has partnered with RioCan Real Estate Investment Trust in the RioCan-HBC Joint Venture.

Media Contact:

Andrew Blecher
SVP Corporate Communications & Public Relations
andrew.blecher@hbc.com

Tiffany Bourré
Director, External Communications
905-595-7184
tiffany.bourre@hbc.com

Hudson’s Bay Company declares quarterly dividend of $0.05 per common share

TORONTO & NEW YORK, 2016-Mar-23 — /EPR Retail News/ — Hudson’s Bay Company (“HBC” or the “Company”) (TSX:HBC) announced that the Company’s Board of Directors has approved a quarterly dividend for holders of the Company’s common shares in the amount of $0.05 per common share. The dividend will be paid on April 15, 2016 to shareholders of record at the close of business on March 31, 2016 and is designated as an “eligible dividend” for Canadian tax purposes.

About Hudson’s Bay Company
Hudson’s Bay Company is one of the fastest-growing department store retailers in the world, based on its successful formula of driving the performance of high quality stores and their all-channel offerings, unlocking the value of real estate holdings and growing through acquisitions. Founded in 1670, HBC is the oldest company in North America. HBC’s portfolio today includes ten banners, in formats ranging from luxury to better department stores to off price fashion shopping destinations, with more than 460 stores and 66,000 employees around the world.

In North America, HBC’s leading banners include Hudson’s Bay, Lord & Taylor, Saks Fifth Avenue, Gilt, and Saks Fifth Avenue OFF 5TH, along with Find @ Lord & Taylor and Home Outfitters. In Europe, its banners include GALERIA Kaufhof, the largest department store group in Germany, Belgium’s only department store group Galeria INNO, as well as Sportarena.

HBC has significant investments in real estate joint ventures. It has partnered with Simon Property Group Inc. in the HBS Global Properties Joint Venture, which owns properties in the United States and Germany. In Canada, it has partnered with RioCan Real Estate Investment Trust in the RioCan-HBC Joint Venture.

Hudson’s Bay Company

INVESTOR RELATIONS:
416-256-6745
investorrelations@hbc.com
or

MEDIA CONTACT:
Tiffany Bourré, 905-595-7184
Director, External Communications
tiffany.bourre@hbc.com

Source: Hudson’s Bay Company

News Provided by Acquire Media

Hudson’s Bay Company to acquire Gilt Groupe Holdings, Inc. for $250 million

  • Acquisition Accelerates HBC’s All-Channel Growth
  • Strong Mobile and Personalization Expertise Will Advance Pace of Innovation Across HBC’s Rapidly Growing Digital Business
  • Gilt has Loyal and Devoted Millennial Membership

TORONTO & NEW YORK, 2016-1-8 — /EPR Retail News/ — (All amounts in US dollars) – Hudson’s Bay Company (“HBC” or the “Company”) (TSX: HBC) today announced that it has entered into a definitive agreement to acquire Gilt Groupe Holdings, Inc. (“Gilt”) for $250 million in cash, subject to customary requirements.

This transaction reflects HBC’s ongoing focus on advancing its all-channel model while continuing to grow its successful off-price business through the integration of Gilt with Saks OFF 5TH locations.

Gilt is a leading and innovative online shopping destination, offering its members special access to inspiring fashion merchandise and experiences. With over 9 million members and approximately 50% of orders generated on its mobile platform, Gilt has cultivated a loyal and devoted millennial following.

Jerry Storch, the Chief Executive Officer of HBC, stated, “With this transaction we are further accelerating both HBC’s all-channel offering and Gilt’s growth. We plan to continue to foster Gilt’s culture of innovation, which has helped create a strong brand with a loyal and devoted millennial following. Adding Gilt to our rapidly growing digital business is very exciting and we see tremendous potential to enhance our mobile and personalization strategies by leveraging Gilt’s advanced capabilities. We look forward to welcoming the Gilt team to HBC and to benefitting from the complementary nature of our businesses.”

“HBC and Saks OFF 5TH are the ideal home for Gilt and our members,” said Michelle Peluso, Chief Executive Officer of Gilt. “HBC understands our proposition and is committed to positioning our business for further success. Our members will find having a brick and mortar presence valuable and a positive addition to the Gilt experience. We are excited for our future and confident that we have the right team in place to continue to innovate the shopping experience and grow Gilt.”

The transaction is expected to contribute approximately $500 million to HBC’s consolidated fiscal 2016 sales and be complementary to HBC’s existing business. Additionally, HBC plans to leverage Gilt’s mobile and personalization capabilities to accelerate the growth of HBC’s digital business across all of its existing banners.

The Company also expects to benefit from the integration of Gilt with Saks OFF 5TH locations, including the introduction of a new return program at Saks OFF 5TH locations for Gilt merchandise following the closing of the acquisition. HBC also expects to create Gilt concept shops at Saks OFF 5TH stores, developing a true all-channel model for Gilt.

The Company expects Gilt to contribute approximately $40 million of Adjusted EBITDA by fiscal 2017, which is expected to be generated from both revenue and cost drivers. Opportunities for revenue growth at Gilt include growth in Gilt’s underlying business, revenue synergies from accepting Gilt returns at Saks Off 5th stores, and growth in Gilt’s membership from leveraging HBC’s customer base to source new members. Opportunities for revenue growth at Saks Off 5th include increased customer traffic to stores from Gilt customers making returns and sales to customers visiting Gilt concept shops inside Saks Off 5th locations. Opportunities for expense savings and operational efficiencies from combining the businesses include reduced shipping costs, increased purchasing power, and shared inventories across Gilt and Saks Off 5th.

HBC expects to fund the $250 million purchase price plus transaction costs using cash on hand. The transaction is expected to close on or about February 1, 2016, subject to customary closing conditions and Gilt shareholder approval.

Scotiabank is acting as exclusive financial advisor to HBC. Willkie Farr & Gallagher LLP acted as M&A legal counsel, and Stikeman Elliott LLP served as company legal counsel. Lazard is acting as exclusive  financial adviser to Gilt andWilmer Cutler Pickering Hale and Dorr is acting as its counsel.

For media use: Photos and b-roll related to the Hudson’s Bay Company acquisition of Gilt available at :http://investor.hbc.com/releases.cfm

About Hudson’s Bay Company
Hudson’s Bay Company is one of the fastest-growing department store retailers in the world, based on its successful formula of driving the performance of high quality stores and their all-channel offerings, unlocking the value of real estate holdings and growing through acquisitions. Founded in 1670, HBC is the oldest company in North America. HBC’s portfolio today includes nine banners, in formats ranging from luxury to better department stores to off price, with more than 460 stores and 65,000 employees around the world.

In North America, HBC’s leading banners include Hudson’s Bay, Lord & Taylor, Saks Fifth Avenue and Saks OFF 5TH, along with Find @ Lord & Taylor and Home Outfitters. In Europe, its banners include GALERIA Kaufhof, the largest department store group in Germany, Belgium’s only department store group Galeria INNO, as well as Sportarena.

HBC has significant investments in real estate joint ventures. It has partnered with Simon Property Group Inc. in the HBS Global Properties Joint Venture, which owns properties in the United States and Germany. In Canada, it has partnered with RioCan Real Estate Investment Trust in the RioCan-HBC Joint Venture.

About Gilt
Gilt, www.Gilt.com, is an innovative online shopping destination offering its members special access to the most inspiring merchandise and experiences all at insider prices. Gilt opens a window every day to the exceptional as it continually searches the world for the most coveted brands and products, including fashion and accessories for women, men, and children; home decor; and unique activities in select cities and destinations.

Forward-Looking Statements

Certain statements made in this news release, including, but not limited to, statements relating to the contemplated acquisition of Gilt, timing and benefits that are expected to result from the proposed acquisition, including the addition of approximately $500 million to HBC’s consolidated fiscal 2016 sales, the expected benefits from the integration of Gilt with Saks OFF 5TH locations, the expected contribution by Gilt of approximately $40 million of Adjusted EBITDA by fiscal 2017, and other statements that are not historical facts, are forward-looking. Often but not always, forward-looking statements can be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “believe”, “estimate”, “plan”, “could”, “should”, “would”, “outlook”, “forecast”, “anticipate”, “foresee”, “continue” or the negative of these terms or variations of them or similar terminology.

Although HBC believes that the forward-looking statements in this news release are based on information and assumptions that are current, reasonable and complete, these statements are by their nature subject to a number of factors that could cause actual results to differ materially from management’s expectations and plans as set forth in such forward-looking statements for a variety of reasons. Some of the factors – many of which are beyond our control and the effects of which can be difficult to predict – include, among others (a) the failure to obtain, on a timely basis or otherwise, required approvals for the proposed acquisition; (b) the risk that a condition to completion of the proposed acquisition may not be satisfied; © the possibility that the anticipated benefits from the proposed acquisition cannot be realized; (d) the ability of HBC to retain and attract key Gilt personnel and for Gilt to maintain relationships with customers, suppliers and other business partners; (e) credit, market, currency, operational, liquidity and funding risks generally, including changes in economic conditions, interest rates or tax rates; and (f) risks and uncertainties relating to information management, technology, supply chain, product safety, changes in law, competition, seasonality, commodity price and business. The proposed acquisition could be modified, restructured or terminated.

HBC cautions that the foregoing list of important factors and assumptions is not exhaustive and other factors could also adversely affect its results. For more information on the risks, uncertainties and assumptions that could cause HBC’s actual results to differ from current expectations, please refer to the “Risk Factors” section of HBC’s third quarter Management Discussion & Analysis dated December 10, 2015, as well as HBC’s other public filings, available at www.sedar.com and at www.hbc.com.

The forward-looking statements contained in this news release describe HBC’s expectations at the date of this news release and, accordingly, are subject to change after such date. Except as may be required by applicable Canadian securities laws, HBC does not undertake any obligation to update or revise any forward-looking statements contained in this news release, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on these forward-looking statements.

 

 

INVESTOR:
Hudson’s Bay Company:
Kathleen de Guzman, (646) 807-0148
kathleen.deguzman@hbc.com
or
Elliot Grundmanis, (416) 256-6732
elliot.grundmanis@hbc.com
or
MEDIA:
Hudson’s Bay Company:
Kathleen Waugh, (212) 391-5350
Kathleen.Waugh@hbc.com
or
Andrew Blecher, (212) 391-3179
Andrew.blecher@hbc.com

 

Source: Hudson’s Bay Company

News Provided by Acquire Media

Saks Fifth Avenue OFF 5TH and Ivanhoé Cambridge to bring four new Saks OFF 5TH locations to Canada

Each Store Will Be the First to Open in Its Market

NEW YORK & TORONTO, 2015-12-7 — /EPR Retail News/ — Saks Fifth Avenue OFF 5TH and Ivanhoé Cambridge announced today an agreement to bring four new Saks OFF 5TH locations to Canada. The stores, which will be the first to introduce the Saks OFF 5TH brand to their respective markets, will open in four Ivanhoé Cambridge shopping centres: Tsawwassen Mills, Outlet Collection Winnipeg, Place Ste-Foy and Montreal Eaton Centre.

Place Ste-Foy, Quebec City, QC

An upscale shopping centre situated on Laurier Boulevard in Quebec City, Place Ste-Foy is currently undergoing a major redevelopment. The 32,943 sq. ft. Saks OFF 5TH store will anchor Place Ste-Foy and will open in spring 2017.

Montreal Eaton Centre, Montreal, QC

During 2016, Montreal Eaton Centre will merge with the space currently known as Complexe Les Ailes to form a single property, and will be the future home to Montreal’s first Saks OFF 5TH store. The 44,840 sq. ft. store will open in the fall of 2018. The Montreal Eaton Centre and Complexe Les Ailes welcome a combined 34 million visitors a year.

Tsawwassen Mills, Tsawwassen, BC

Ivanhoé Cambridge’s third “Mills” project is currently under construction in Tsawwassen, BC. The 32,687 sq. ft. Saks OFF 5TH store will be one of the anchors of the 1.2 million sq. ft. Tsawwassen Mills. The store will welcome its first shoppers at the grand opening of the shopping centre in fall 2016.

Outlet Collection Winnipeg, Winnipeg, MB

Slated to make its debut in spring 2017, Outlet Collection Winnipeg will be the city’s first true outlet shopping destination. The 32,191 sq. ft. Saks OFF 5TH store will anchor the property, and its opening will coincide with the launch of Outlet Collection Winnipeg.

“We are excited that we are able to bring Saks OFF 5TH to these dynamic Ivanhoé Cambridge properties. We have now announced openings in five provinces across the country, and we look forward to bringing our OFF 5TH experience to the Canadian consumer,” commented Jonathan Greller, President of Outlets, HBC. “As we continue to grow our off-price business, we will announce more new Saks OFF 5TH locations in major markets across Canada.”

Bill Tresham, President, Ivanhoé Cambridge said: “We are very pleased with our growing partnership with HBC, which, among other things, includes the opening of these prestigious stores at four outstanding locations. We are excited to offer our guests a new shopping experience unique to each city. The arrival of these anchor stores will further strengthen the market leadership of these properties.”

The highly anticipated openings are part of Saks OFF 5TH’s North American expansion plan to open up to 25 locations across Canada. Saks Fifth Avenue OFF 5TH features a compelling lineup of more than 800 brands, from emerging designers to some of the most recognized names in fashion. The stores feature a carefully edited assortment of luxury designer fashion, footwear, and accessories for men and women all at up to 65% off. With fresh arrivals delivered almost daily, customers will discover new and exciting merchandise, including one-of-a-kind designer finds with each and every visit. The Canadian stores will adapt the redesigned Saks Fifth Avenue OFF 5TH aesthetic, fashioned in an open and bright layout, with adaptable displays, playful graphic elements, offering a comfortable and exciting shopping environment for guests.

Ivanhoé Cambridge and HBC announced earlier this year that three Saks Fifth Avenue OFF 5TH stores will open at Ivanhoé Cambridge shopping centres in 2016. They will be located at Outlet Collection at Niagara, in Niagara-on-the-Lake, Ontario, Vaughan Mills, in Vaughan, Ontario and CrossIron Mills, in the Greater Calgary region, Alberta.

ABOUT SAKS FIFTH AVENUE OFF 5TH
As part of the Hudson’s Bay Company brand portfolio, Saks Fifth Avenue OFF 5TH is a world-class destination for true fashion at extraordinary value. The retailer’s 91 stores and e-commerce division, saksoff5th.com, combine the two great joys of shopping: the delight of discovering the best in luxury and the thrill of finding a deal. A sophisticated shopping experience of carefully curated off-the-runway trends, exceptional service, and savings on the biggest names in fashion,Saks Fifth Avenue OFF 5TH leads the market as the premier luxury-value destination.

ABOUT IVANHOÉ CAMBRIDGE
Ivanhoé Cambridge, a global real estate industry leader, invests in high-quality properties and companies in select cities around the world. It does so prudently with a long-term view to optimize risk-adjusted returns. Founded in Quebecin 1953, Ivanhoé Cambridge has built a vertically integrated business across Canada. Internationally, the Company invests alongside key partners that are leaders in their respective markets.

Through subsidiaries and partnerships, Ivanhoé Cambridge has direct or indirect interests in over 160 million ft2 (up to 15 million m2) of office, retail and logistics properties as well as in more than 23,000 multiresidential units. IvanhoéCambridge held more than Cdn$48 billion in total assets as at June 30, 2015. The Company is a real estate subsidiary of the Caisse de dépôt et placement du Québec (cdpq.com), one of Canada’s leading institutional fund managers. For further information: ivanhoecambridge.com.

HBC
Tiffany Bourré, 905-595-7184
416-571-1301 (cell)
tiffany.bourre@hbc.com
or
Ivanhoé Cambridge
Sébastien Théberge, +1-866-456-3342
Sebastien.Theberge@ivanhoecambridge.com

Source: Hudson’s Bay Company

News Provided by Acquire Media

Hudson’s Bay Company, RioCan Real Estate Investment Trust closed 2nd tranche of their joint venture focused on real estate growth opportunities in Canada

TORONTO & NEW YORK, 2015-11-26 — /EPR Retail News/ — Hudson’s Bay Company (“HBC”) (TSX:HBC) and RioCan Real Estate Investment Trust (“RioCan”) (TSX:REI.UN) announced today that they have closed the second tranche of their joint venture (the “RioCan-HBC JV”) focused on real estate growth opportunities in Canada. The joint venture will enable HBC and RioCan to build on the strength of existing real estate assets and identify new real estate growth opportunities. Unless otherwise indicated, all amounts are expressed in Canadian dollars.

As part of the second tranche closing:

  • HBC indirectly contributed three ground-leased properties consisting of Yorkdale Shopping Centre,Scarborough Town Centre and Square One (collectively the “YSS Properties”) totaling 735,926 square feet to the RioCan-HBC JV.
  • The transaction values this second tranche of the HBC real estate contribution at approximately $379 millionbased on a capitalization rate of 5.26%. As part of the transaction, the HBC mortgage on the Yorkdale ground lease of approximately $48 million was assumed by an entity related to the RioCan-HBC JV, resulting in a total HBC equity stake of $1,281 million or 89.7% in the RioCan-HBC JV.

RioCan has committed to contribute a total of $325 million to the RioCan-HBC JV for an eventual pro forma equity stake of approximately 20%. The balance of these contributions will consist of $52.5 million in tenant allowances, and$125.4 million to be used to fund future property acquisitions to increase the value and diversify the tenant base of the RioCan-HBC JV. These contributions will be made by the third anniversary of the first tranche closing date.

On August 4, 2015, HBC obtained a favourable court declaration and order from the Superior Court of Justice-Ontariowhich permits the indirect contribution of the three ground-leased YSS Properties to RioCan-HBC JV. This court order has been appealed by the related landlords. If the landlords’ appeal is successful, HBC and RioCan have agreed to unwind HBC’s capital contribution of these ground leases, in whole or in part, if required to protect the value of these assets.

About Hudson’s Bay Company
Hudson’s Bay Company is one of the fastest-growing department store retailers in the world, based on its successful formula of driving the performance of high quality stores and their all-channel offerings, unlocking the value of real estate holdings and growing through acquisitions. Founded in 1670, HBC is the oldest company in North America. With the recent completion of its acquisition of GALERIA Kaufhof Group, HBC’s portfolio today includes nine banners, in formats ranging from luxury to better department stores to off price, with more than 460 stores and 65,000 employees around the world.

In North America, HBC’s leading banners include Hudson’s Bay, Lord & Taylor, Saks Fifth Avenue and Saks OFF 5TH, along with Find @ Lord & Taylor and Home Outfitters. In Europe, its banners include GALERIA Kaufhof, the largest department store group in Germany, Belgium’s only department store group Galeria INNO, as well as Sportarena.

HBC has significant investments in real estate joint ventures. It has partnered with Simon Property Group Inc. in the HBS Global Properties Joint Venture, which owns properties in the United States and Germany. In Canada, it has partnered with RioCan Real Estate Investment Trust in the RioCan-HBC Joint Venture.

About RioCan
RioCan is Canada’s largest real estate investment trust with a total enterprise value of approximately $15.1 billion as atSeptember 30, 2015. It owns and manages Canada’s largest portfolio of shopping centres with ownership interests in a portfolio of 354 retail properties containing approximately 78 million square feet, including 49 retail properties containing 13 million square feet in the United States as at September 30, 2015. RioCan’s portfolio also includes 16 properties under development in Canada. For further information, please refer to RioCan’s website at www.riocan.com.

Forward-Looking Statements – Hudson’s Bay Company

Certain statements made in this news release, including, but not limited to, statements relating to the strategies, objectives and benefits of the RioCan-HBC joint venture, and RioCan’s commitment to make future contributions to the RioCan-HBC JV, and other statements that are not historical facts, are forward-looking. Often but not always, forward-looking statements can be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “believe”, “estimate”, “plan”, “could”, “should”, “would”, “outlook”, “forecast”, “anticipate”, “foresee”, “continue” or the negative of these terms or variations of them or similar terminology.

Although HBC believes that the forward-looking statements in this news release are based on information and assumptions that are current, reasonable and complete, these statements are by their nature subject to a number of factors that could cause actual results to differ materially from management’s expectations and plans as set forth in such forward-looking statements for a variety of reasons. Some of the factors – many of which are beyond HBC’s control and the effects of which can be difficult to predict – include, among others: (a) the risk that the anticipated benefits from the RioCan-HBC joint venture cannot be realized, (b) the risk that the RioCan-HBC JV is unable to make future acquisitions and diversify its tenant base, (c) the risk that RioCan fails to satisfy its future contribution commitments, (d) the risk that the purchase price paid by the RioCan-HBC JV to acquire the properties is greater than the accounting fair market value of such properties that will be determined by third party appraisals; (d) the risk that the landlords of the YSS Properties will be successful in their appeal of the August 4, 2015 court order and HBC will have to unwind all or a part of the contribution of the YSS Properties; and (e) the risk that the RioCan-HBC JV is unable to complete a future monetization transaction.

HBC cautions that the foregoing list of important factors and assumptions is not exhaustive and other factors could also adversely affect its results. For more information on the risks, uncertainties and assumptions that could cause HBC’s actual results to differ from current expectations, please refer to the “Risk Factors” section of HBC’s Annual Information Form dated April 30, 2015, HBC’s second quarter Management Discussion & Analysis dated September 10, 2015, as well as HBC’s other public filings, available at www.sedar.com and at www.hbc.com.

The forward-looking statements contained in this news release describe HBC’s expectations at the date of this news release and, accordingly, are subject to change after such date. Except as may be required by applicable Canadian securities laws, HBC does not undertake any obligation to update or revise any forward-looking statements contained in this news release, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on these forward-looking statements.

Forward-Looking Statements – RioCan Real Estate Investment Trust

This news release contains forward-looking statements within the meaning of applicable securities laws. These statements include, but are not limited to, statements made in this News Release relating to the strategies, objectives and benefits of the RioCan-HBC joint venture, RioCan’s commitment to make future contributions to the RioCan-HBC JV, and other statements concerning RioCan’s objectives, its strategies to achieve those objectives, as well as statements with respect to management’s beliefs, plans, estimates, and intentions, and similar statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “outlook”, “objective”, “may”, “will”, “would”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “should”, “plan”, “continue”, or similar expressions suggesting future outcomes or events. Such forward-looking statements reflect management’s current beliefs and are based on information currently available to management. All forward-looking statements in this News Release are qualified by these cautionary statements.

These forward-looking statements are not guarantees of future events or performance and, by their nature, are based on RioCan’s current estimates and assumptions, which are subject to risks and uncertainties, including those described under “Risks and Uncertainties” in RioCan’s Management’s Discussion and Analysis for the period ended September 30, 2015, which could cause actual events or results to differ materially from the forward-looking statements contained in this News Release. Those risks and uncertainties include, but are not limited to, those related to: liquidity and general market conditions; tenant concentrations and related risk of bankruptcy or restructuring (and the terms of any bankruptcy or restructuring proceeding), occupancy levels and defaults, including the failure to fulfill contractual obligations by the tenant or a related party thereof; lease renewals and rental increases; the ability to re-lease and find new tenants for vacant space; retailer competition; access to debt and equity capital; interest rate and financing risk; joint ventures and partnerships; the relative illiquidity of real property; unexpected costs or liabilities related to acquisitions and dispositions; development risk associated with construction commitments, project costs and related approvals; environmental matters; litigation; reliance on key personnel; management information systems; unitholder liability; income and indirect taxes; U.S. investments, property management and foreign currency risk; and credit ratings.

RioCan currently qualifies as a real estate investment trust for tax purposes and intends to continue to qualify for future years. The Income Tax Act (Canada) contains provisions which potentially impose tax on publicly traded trusts which qualify as specified investment flow-through entities (the SIFT Provisions). However, the SIFT Provisions do not impose tax on a publicly traded trust which qualifies as a real estate investment trust (REIT). Should RioCan no longer qualify as a REIT under the SIFT Provisions, certain statements contained in RioCan’s MD&A may need to be modified. RioCanis still subject to Canadian tax in their incorporated Canadian subsidiaries.

The Trust’s U.S. subsidiary qualifies as a REIT for U.S. income tax purposes. The subsidiary expects to distribute all of its U.S. taxable income (if any) to Canada and is entitled to deduct such distributions for U.S. income tax purposes. The subsidiary’s qualification as a REIT depends on the REIT’s satisfaction of certain asset, income, organizational, distribution, unitholder ownership and other requirements on a continuing basis. The Trust anticipates that the subsidiary will continue to qualify as a U.S. REIT in the future. The Trust’s U.S. subsidiary is subject to a 30% or 35% withholding tax on distributions to Canada.

Other factors, such as general economic conditions, including interest rate and foreign exchange rate fluctuations, may also have an effect on RioCan’s results of operations. Material factors or assumptions that were applied in drawing a conclusion or making an estimate set out in the forward-looking information may include, but are not limited to: a stable retail environment; relatively low and stable interest costs; a continuing trend toward land use intensification, including residential development in high growth and urban markets; access to equity and debt capital markets to fund, at acceptable costs, future capital requirements and to enable the Trust to refinance debts as they mature; and the availability of investment opportunities for growth in Canada and the U.S..

For a description of additional risks that could cause actual results to materially differ from management’s current expectations, see “Risks and Uncertainties” in RioCan’s Management’s Discussion and Analysis in its 2014 Annual Report, and for the period ended September 30, 2015, and in “Risks and Uncertainties” in RioCan’s AIF. Although the forward-looking information contained in this News Release is based upon what management believes are reasonable assumptions, there can be no assurance that actual results will be consistent with this forward-looking information. Certain statements included in this News Release may be considered “financial outlook” for purposes of applicable Canadian securities laws, and as such the financial outlook may not be appropriate for purposes other than this News Release. The forward-looking information contained in this News Release is made as of the date of this News Release, and should not be relied upon as representing RioCan’s views as of any date subsequent to the date of this News Release.

Management undertakes no obligation, except as required by applicable law, to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise.

Hudson’s Bay Company
INVESTOR RELATIONS:
416-256-6745
investorrelations@hbc.com
or
MEDIA RELATIONS:
Tiffany Bourré
905-595-7184
Director, External Communications
tiffany.bourre@hbc.com
or
RioCan Real Estate Investment Trust
Edward Sonshine, O. Ont., Q.C.
416-866-3018
Chief Executive Officer
or
Cynthia Devine
647-253-4973
Executive Vice President, Chief Financial Officer and Corporate Secretary
www.riocan.com

Source: Hudson’s Bay Company

News Provided by Acquire Media

Hudson’s Bay Company to release Q3 2015 financial results after market close on December 10, 2015

TORONTO & NEW YORK, 2015-11-26 — /EPR Retail News/ — Hudson’s Bay Company (“HBC”) (TSX:HBC) will release financial results for the third quarter ended October 31, 2015 after market close on December 10, 2015. Richard Baker, Governor and Executive Chairman, Jerry Storch, Chief Executive Officer, and Paul Beesley, Chief Financial Officer, will discuss financial results and other matters during a conference call on December 11, 2015 at 8:30 AM ET.

The conference call will be accessible by calling the participant operator assisted toll-free dial-in number (877) 852-2926 or international dial-in number (253) 237-1123. A live webcast of the conference call will be accessible on HBC’s website at: http://investor.hbc.com/events.cfm. The audio replay also will be available via this link.

About Hudson’s Bay Company
Hudson’s Bay Company is one of the fastest-growing department store retailers in the world, based on its successful formula of driving the performance of high quality stores and their all-channel offerings, unlocking the value of real estate holdings and growing through acquisitions. Founded in 1670, HBC is the oldest company in North America. With the recent completion of its acquisition of GALERIA Kaufhof Group, HBC’s portfolio today includes nine banners, in formats ranging from luxury to better department stores to off price, with more than 460 stores and 65,000 employees around the world.

In North America, HBC’s leading banners include Hudson’s Bay, Lord & Taylor, Saks Fifth Avenue and Saks OFF 5TH, along with Find @ Lord & Taylor and Home Outfitters. In Europe, its banners include GALERIA Kaufhof, the largest department store group in Germany, Belgium’s only department store group Galeria INNO, as well as Sportarena.

HBC has significant investments in real estate joint ventures. It has partnered with Simon Property Group Inc. in the HBS Global Properties Joint Venture, which owns properties in the United States and Germany. In Canada, it has partnered with RioCan Real Estate Investment Trust in the RioCan-HBC Joint Venture.

Hudson’s Bay Company
INVESTOR RELATIONS:
416-256-6745
investorrelations@hbc.com
or
MEDIA CONTACT:
Tiffany Bourré, 905-595-7184
Director, External Communications
tiffany.bourre@hbc.com

Source: Hudson’s Bay Company

News Provided by Acquire Media

Hudson’s Bay Company sells total of $533 million of its equity in HBS Global Properties to three third party investors

Proceeds to be used to reduce debt

TORONTO & NEW YORK, 2015-11-18 — /EPR Retail News/ — (All amounts in US dollars) – Hudson’s Bay Company (“HBC” or the “Company”) (TSX: HBC) is pleased to announce that it has sold a total of $533 million of its equity in HBS Global Properties, HBC’s real estate joint venture with Simon Property Group, to three third party investors. Proceeds from the equity sale, together with cash on hand, will be used to reduce HBC’s outstanding term loan B borrowings from $1,085 million to $500 million.

This equity sale follows the Company’s announcement on September 30, 2015 that it expected to sell between $400and $600 million of equity in HBS Global Properties. The total third party investment of $533 million values HBS Global Properties’ portfolio at $4.5 billion(1)(2) based on a blended capitalization rate of 5.90%, and is comprised of individual investments from the following entities:

  • $250 million equity investment by Ivanhoé Cambridge;
  • $150 million equity investment by Madison International Realty; and
  • $133 million equity investment by a large U.S. pension.

This transaction provides additional third party endorsements of the value of HBC’s real estate ventures while further de-leveraging the Company’s balance sheet. HBC will retain an approximate 63% ownership interest in HBS Global Properties as a result of this transaction and following the contribution of Simon Property Group’s $100 millioncommitment for tenant improvements.

Mr. Richard Baker, Governor and Executive Chairman of HBC, said: “We are thrilled to have three premier real estate investors join HBS Global Properties, bringing with them significant real estate investment expertise. These transactions further demonstrate the substantial value of our real estate portfolio, and our ability to unlock this value for our shareholders. We look forward to working with our partners to significantly expand and diversify the assets ofHBS Global Properties. We believe this will lead to an increase in the value of HBS Global Properties and therefore benefit HBC shareholders.”

As part of the transactions, Ivanhoé Cambridge will be granted representation on the board of directors of HBS Global Properties, raising the total number of board seats from four to five.

From time to time, HBC or HBS Global Properties may sell additional equity in HBS Global Properties, the proceeds of which could be used to further deleverage the Company or fund future acquisitions by HBS Global Properties.

RBC Capital Markets acted as exclusive financial advisor to HBC in connection with the equity sale.

(1) Assumes a EURUSD exchange rate of 1.07
(2) Represents the value of the properties after all transactions are completed, including the post-closing acquisition of certain German real estate properties and the minority interest related to the Kaufhof transaction, expected to occur within 5 months.

About Hudson’s Bay Company
Hudson’s Bay Company (TSX: HBC) is one of the fastest-growing department store retailers in the world, based on its successful formula of driving the performance of high quality stores and their all-channel offerings, unlocking the value of real estate holdings and growing through acquisitions. Founded in 1670, HBC is the oldest company in North America. With the recent completion of its acquisition of GALERIA Kaufhof Group, HBC’s portfolio today includes eight banners, in formats ranging from luxury to better department stores to off price, with more than 460 stores and 65,000 employees around the world.

In North America, HBC’s leading banners include Hudson’s Bay, Lord & Taylor, Saks Fifth Avenue and Saks OFF 5TH, along with Home Outfitters. In Europe, its banners include GALERIA Kaufhof, the largest department store group inGermany, Belgium’s only department store group Galeria INNO, as well as Sportarena.

HBC has significant investments in real estate joint ventures. It has partnered with Simon Property Group Inc. in HBS Global Properties Joint Venture, which owns properties in the United States and Germany. In Canada, it has partnered with RioCan Real Estate Investment Trust in the RioCan-HBC Joint Venture.

Forward Looking Statements

Certain statements made in this news release constitute forward-looking statements within the meaning of applicable securities laws, including, without limitation, statements regarding the pay down of HBC’s outstanding term loan B borrowings, Simon Property Group’s remaining commitments for tenant improvements, the expansion and diversification of the assets of HBS Global Properties, the acquisition of certain German real estate properties, HBC’s pro forma equity interest in HBS Global Properties and the potential future sale by HBC of additional equity in HBS Global Properties. The words “may”, “will”, “would”, “should”, “could”, “expects”, “plans”, “intends”, “trends”, “indications”, “anticipates”, “believes”, “estimates”, “predicts”, “likely” or “potential”, or the negative or other variations of these words or other comparable words or phrases, are intended to identify forward-looking statements. Forward-looking statements are based on current estimates and assumptions made by the Company in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors that it believes are appropriate and reasonable in the current circumstances. However, there can be no assurance that such estimates and assumptions will prove to be correct.

Although HBC believes that the forward-looking statements in this news release are based on information and assumptions that are current, reasonable and complete, these statements are by their nature subject to a number of factors that could cause actual results to differ materially from management’s expectations and plans as set forth in such forward-looking statements for a variety of reasons. Some of the factors – many of which are beyond HBC’s control and the effects of which can be difficult to predict – include, among others: (a) the possibility that the anticipated benefits from HBS Global Properties are not realized; (b) the risk that HBS Global Properties will not be able to expand and diversify its assets or effect a future monetization transaction for the benefit of shareholders of HBC; and (c) credit, market, currency, operational, liquidity and funding risks generally, including changes in economic conditions, interest rates or tax rates.

HBC cautions that the foregoing list of important factors and assumptions is not exhaustive and other factors could also adversely affect its results. For more information on the risks, uncertainties and assumptions that could cause HBC’s actual results to differ from current expectations, please refer to the “Risk Factors” section of HBC’s Annual Information Form dated April 30, 2015, HBC’s second quarter Management Discussion & Analysis dated September 10, 2015, as well as HBC’s other public filings, available at www.sedar.com and at www.hbc.com

The forward-looking statements contained in this news release describe HBC’s expectations at the date of this news release and, accordingly, are subject to change after such date. Except as may be required by applicable Canadian securities laws, HBC does not undertake any obligation to update or revise any forward-looking statements contained in this news release, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on these forward-looking statements.

Media Relations:
Hudson’s Bay Company
Tiffany Bourré, 905-595-7184
Director, External Communications
tiffany.bourre@hbc.com
or
Investor/Media Contact
Investor Relations:
416-256-6745
investorrelations@hbc.com

Source: Hudson’s Bay Company

News Provided by Acquire Media

HBS Global Properties announces the sale of $533 million of equity to three new investors

New investment values HBS Global Properties’ portfolio at US$4.5 billion(1)(2)

NEW YORK, LOS ANGELES & COLOGNE, Germany, 2015-11-18 — /EPR Retail News/ — (All amounts in US dollars) – HBS Global Properties, the real estate joint venture between Hudson’s Bay Company (“HBC”) (TSX: HBC) and Simon Property Group Inc. (“Simon”) (NYSE: SPG), is pleased to announce the sale of $533 million of equity, previously held by HBC, to three new investors.

The third party investment of $533 million values HBS Global Properties’ portfolio at $4.5 billion(1)(2), based on a blended capitalization rate of 5.90%. The investment is comprised of individual investments from the following premier real estate investors:

  • $250 million equity investment by Ivanhoé Cambridge;
  • $150 million equity investment by Madison International Realty; and
  • $133 million equity investment by a large U.S. pension.

HBC received all proceeds from the transaction. As a result of this transaction and the expected contribution of Simon Property Group’s $100 million commitment for tenant improvements, the pro forma ownership of HBS Global Properties will be held approximately as follows. All partner equity has been valued at a 5.9% capitalization rate:

  • 63% by HBC;
  • 13% by Simon Property Group;
  • 11% by Ivanhoé Cambridge;
  • 7% by Madison International Realty; and
  • 6% by a large U.S. pension.

“This investment highlights the value of our existing portfolio of properties. We are excited to combine the expertise of our new investors with our team to continue to grow our portfolio through anticipated accretive acquisitions in the United States and Europe,” said Lee Neibart, Chief Executive Officer of HBS Global Properties. “HBC’s collection of leading retail banners has the opportunity to serve as attractive tenants for a range of retail opportunities which we believe affords HBS Global Properties a significant competitive advantage.”

As part of the transactions, Ivanhoé Cambridge will be granted representation on the board of directors of HBS Global Properties, raising the total number of board seats from four to five.

With the recent acquisition of 41 GALERIA properties, HBS Global Properties now owns an international property portfolio of 83 marquee retail locations across the United States and Germany, including Saks, Lord & Taylor and GALERIA Kaufhof flagship department stores in Berlin, Beverly Hills, Cologne, Dusseldorf, Frankfurt, the greater New York area, and other metropolitan and suburban centers. HBS Global Properties has a mandate to pursue attractive credit tenant, net-leased and multi-tenanted retail buildings in the United States and Europe.

As appropriate, HBS Global Properties may sell new equity, the proceeds of which could be used to fund future acquisitions.

(1) Assumes a EURUSD exchange rate of 1.07
(2) Represents the value of the properties after all transactions are completed, including the post-closing acquisition of certain German real estate properties and the minority interest related to the Kaufhof transaction, expected to occur within 5 months.

For HBC Shareholders – Forward Looking Statements

Certain statements made in this news release constitute forward-looking statements within the meaning of applicable securities laws, including, without limitation, statements regarding the pro forma equity interests of HBC and other investors in HBS Global Properties, future anticipated accretive acquisitions by HBS Global Properties and the potential future sale of new equity of HBS Global Properties. The words “may”, “will”, “would”, “should”, “could”, “expects”, “plans”, “intends”, “trends”, “indications”, “anticipates”, “believes”, “estimates”, “predicts”, “likely” or “potential”, or the negative or other variations of these words or other comparable words or phrases, are intended to identify forward-looking statements. Forward-looking statements are based on current estimates and assumptions made by the Company in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors that it believes are appropriate and reasonable in the current circumstances. However, there can be no assurance that such estimates and assumptions will prove to be correct.

Although HBC believes that the forward-looking statements in this news release are based on information and assumptions that are current, reasonable and complete, these statements are by their nature subject to a number of factors that could cause actual results to differ materially from management’s expectations and plans as set forth in such forward-looking statements for a variety of reasons. Some of the factors – many of which are beyond HBC’s control and the effects of which can be difficult to predict – include, among others: (a) the possibility that the anticipated benefits from HBC are not realized; (b) the risk that HBS Global Properties will not be able to expand and diversify its assets or effect a future monetization transaction for shareholders of HBC; and © credit, market, currency, operational, liquidity and funding risks generally, including changes in economic conditions, interest rates or tax rates.

HBC cautions that the foregoing list of important factors and assumptions is not exhaustive and other factors could also adversely affect its results. For more information on the risks, uncertainties and assumptions that could cause HBC’s actual results to differ from current expectations, please refer to the “Risk Factors” section of HBC’s Annual Information Form dated April 30, 2015, HBC’s second quarter Management Discussion & Analysis dated September 10, 2015, as well as HBC’s other public filings, available at www.sedar.com and at www.hbc.com.

The forward-looking statements contained in this news release describe HBC’s expectations at the date of this news release and, accordingly, are subject to change after such date. Except as may be required by applicable Canadian securities laws, HBC does not undertake any obligation to update or revise any forward-looking statements contained in this news release, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on these forward-looking statements.

Media Contact

HBS Global Properties

Tiffany Bourré
Phone: (905) 595-7184
Email: tiffany.bourre@hbc.com

SOURCE: Hudson’s Bay Company

Hudson’s Bay Company launches Find @ Lord & Taylor, new off-price concept catering to younger demographic

  • First Location Debuts November 2015 in New Jersey
  • Five Additional Openings Planned for 2016

NEW YORK, 2015-10-28 — /EPR Retail News/ — Hudson’s Bay Company announced today the launch of Find @ Lord & Taylor, a new off-price concept catering to a younger demographic and delivering on-trend, in-season product at amazing prices. Opening its first store in Paramus, New Jersey in November 2015, Find @ Lord & Taylor will launch in the Northeastern United States, with six additional store openings planned for 2016.

“Off-price continues to be a key driver of HBC’s growth strategy, and we are thrilled to expand this business with the introduction of our newest concept,” stated Jerry Storch, CEO, Hudson’s Bay Company. “We see significant opportunity for expansion and remain committed to investing in this sector through new store opening and developments. We believe Find @ Lord & Taylor will be a great entry point to introduce the Lord & Taylor brand to new consumers.”

Find @ Lord & Taylor stores will average 30,000 square feet, offering a compelling assortment of women’s, men’s, and kids’ apparel and footwear, with a fun, easy-to-shop experience. Unlike other HBC Outlets, Find @ Lord & Taylor will also offer an expanded Home selection. By combining the best in brands with outstanding value, shoppers will enjoy fresh and distinct apparel and home fashion offerings from leading brands at savings of up to 70% off.

“We believe we have the right mix of compelling price points, new locations and easy-to-shop store formats to target a new demographic of shoppers,” said Jonathan Greller, President of Outlets, Hudson’s Bay Company. “Our goal is to offer our consumers an exciting merchandise mix at impressive prices.”

Find @ Lord & Taylor is part of HBC’s Outlet Division, along with Saks Fifth Avenue OFF 5TH. For more information, visit findit.com.

About Hudson’s Bay Company
Hudson’s Bay Company is one of the fastest-growing department store retailers in the world, based on its successful formula of driving the performance of high quality stores and their all-channel offerings, unlocking the value of real estate holdings and growing through acquisitions. Founded in 1670, HBC is the oldest company in North America. With the recent completion of its acquisition of GALERIA Kaufhof Group, HBC’s portfolio today includes eight banners, in formats ranging from luxury to better department stores to off price, with more than 460 stores and 65,000 employees around the world.

In North America, HBC’s leading banners include Hudson’s Bay, Lord & Taylor, Saks Fifth Avenue and Saks OFF 5TH, along with Find @ Lord & Taylor and Home Outfitters. In Europe, its banners include GALERIA Kaufhof, the largest department store group in Germany, Belgium’s only department store group Galeria INNO, as well as Sportarena.

HBC has significant investments in real estate joint ventures. It has partnered with Simon Property Group Inc. in HBS Global Properties Joint Venture, which owns properties in the United States and Germany. In Canada, it has partnered with RioCan Real Estate Investment Trust in the RioCan-HBC Joint Venture.

Hudson’s Bay Company
Tiffany Bourré
905-595-7184
416-571-1301 (cell)
tiffany.bourre@hbc.com

Source: Hudson’s Bay Company

News Provided by Acquire Media

GALERIA Kaufhof Group provided an overview of its plans following the acquisition by Hudson’s Bay Company

  • Under the Leadership of CEO Olivier Van den Bossche,
    GALERIA Kaufhof Group to Benefit from HBC’s Relationships with the World’s Best Brands, Successful Strategies in Key Merchandise Categories and Expertise in All-Channel Retailing
  • New Strategies Build from GALERIA Kaufhof Group’s Strong Heritage and Great Loyalty in the German and Belgian Markets; will be introduced as soon as the First Half of 2016

COLOGNE, Germany & TORONTO, 2015-10-1 — /EPR Retail News/ — GALERIA Kaufhof Group (“the Company”) today announced the closing of its successful acquisition by Hudson’s Bay Company (“HBC”) (TSX:HBC) and provided an overview of the plans in place to build on its strong heritage and important role in the German and Belgian retail marketplace. The plans center on working with HBC to invest in the GALERIA Kaufhof Group banners being GALERIA Kaufhof, Galeria INNO, along with DINEA and Sportarena to substantially enhance the customer experience across all channels and drive growth now and into the future.

“On behalf of everyone at HBC, I want to welcome GALERIA Kaufhof Group, all banners and all 21,500 Associates, to our family of exceptional department stores,” said Richard Baker, Governor and Executive Chairman of HBC. “Our experience since we began working with Olivier Van den Bossche and the leadership team has reaffirmed for us thatGALERIA Kaufhof Group has a strong platform in place, highly motivated Associates, great loyalty among customers, outstanding locations and substantial potential for growth.”

Jerry Storch, HBC’s CEO, said, “Our teams are off to a strong start working together in developing plans that build fromGALERIA Kaufhof Group’s distinctive appeal in the German market while bringing to bear the strategies that have enabled us to drive substantial growth at our department store banners in North America, including Saks Fifth Avenue, Saks OFF 5TH, Lord & Taylor and Hudson’s Bay. We strongly believe in the great future ahead for GALERIA Kaufhof Group and look forward to seeing our plans come alive across all channels.”

With the addition of GALERIA Kaufhof Group, the HBC portfolio includes more than 464 stores in four countries with eight banners and expected sales in the range of C$14.5-C$15.5 billion in fiscal 20161.

New Strategies to Dramatically Enhance the Customer Experience

Beginning in the first half of 2016 and through 2017, GALERIA Kaufhof Group plans to introduce the following strategies in Germany and Belgium, with additional plans to be announced over time:

  • Leveraging HBC’s global footprint and deep brand relationships, GALERIA Kaufhof Group expects to attract a wider range of world-class brands, including in important women’s categories. The Company expects to accelerate its introduction of new brands that are highly sought after by German and Belgian customers.
  • Substantially enhancing GALERIA Kaufhof Group’s beauty, shoes and handbag offerings to differentiate them across the German marketplace and make them premier destinations for customers. Each of these departments will be substantially enlarged with new designs, brands and enhanced service.
  • Expanding GALERIA Kaufhof Group’s digital capabilities and offerings in order to develop Germany’s best consumer-facing network, incorporating stores, the internet, mobile and social media, building on the successful digital merchandising and marketing strategies HBC has employed in North America. In connection with this, GALERIA Kaufhof Group will invest in assortment expansions as well as fulfillment capabilities to increase efficiency and ease of ordering and delivery.
  • Expanding the offering for customers by growing store selling space, by making use of previously unproductive office and storage areas.

Additionally, HBC plans to introduce its Saks Fifth Avenue and Saks OFF 5TH banners to the German market over time.

Putting Plans Into Action

Don Watros, President of HBC International, will work closely with Olivier Van den Bossche and the GALERIA Kaufhof Group team to oversee and support execution of the plans for the business going forward.

“Olivier has a true passion for retail and is a renowned expert in the strategic development of department stores,” saidMr. Watros. “I look forward to collaborating with him and his first-rate team, combining the experience and philosophy of HBC with the expertise and continuity guaranteed by the existing management team at GALERIA Kaufhof Group. We are thrilled to start putting our plans into action and making the banners even better places to visit, shop and work.”

HBC plans to honor all commitments it has made under GALERIA Kaufhof Group’s Social Charter and expects to expand the Associate base over time as new strategies create demand for personnel in stores and in connection with digital strategies. The Company will remain headquartered in Cologne, Germany.

Olivier Van den Bossche, CEO of GALERIA Kaufhof Group, said, “HBC strongly believes in the future of department stores and has a proven track record of driving strong performance at well-known retail banners by enhancing the customer experience through all channels. Our team is enormously excited about the plans we have developed to start a new chapter for GALERIA Kaufhof Group and to drive the growth and success of our business.”

Looking to the Christmas Season and the Future

Mr. Van den Bossche added, “Even as we look to the future, we are focused on delivering an enjoyable, exciting and convenient Christmas shopping experience for our customers, including greater investment in marketing to highlight our offering and service in our stores and online fulfillment. And we look forward with great anticipation to bringing our new plans to life for our customers starting in the new year.”

# # #

About GALERIA Kaufhof Group
GALERIA Kaufhof Group, with its headquarters in Cologne, Germany, is a leading European department store company. With its innovative and successful Galeria concept, the Company offers a modern shopping experience.GALERIA Kaufhof Group, with 21,500 employees, currently operates 102 GALERIA Kaufhof department stores, 60 DINEA restaurants, and 16 Sportarena stores in Germany as well as 16 Galeria INNO department stores in Belgium. Since October 1, 2015, GALERIA Kaufhof Group is part of the premier global department store retailer Hudson’s Bay Company (TSX: HBC). More Information is available under: galeria-kaufhof.de.

About Hudson’s Bay Company
Hudson’s Bay Company (TSX: HBC) is one of the fastest-growing department store retailers in the world, based on its successful formula of driving the performance of high quality stores and their all-channel offerings, unlocking the value of real estate holdings and growing through acquisitions. Founded in 1670, HBC is the oldest company in North America. With the recent completion of its acquisition of GALERIA Kaufhof Group, HBC’s portfolio today includes eight banners, in formats ranging from luxury to better department stores to off price, with more than 460 stores and 65,000 employees around the world.

In North America, HBC’s leading banners include Hudson’s Bay, Lord & Taylor, Saks Fifth Avenue and Saks OFF 5TH, along with Home Outfitters. In Europe, its banners include GALERIA Kaufhof, the largest department store group inGermany, Belgium’s only department store group Galeria INNO, as well as Sportarena.

HBC has significant investments in real estate joint ventures. It has partnered with Simon Property Group Inc. in HBS Global Properties Joint Venture, which owns properties in the United States and Germany. In Canada, it has partnered with RioCan Real Estate Investment Trust in the RioCan-HBC Joint Venture.

Forward-Looking Statements – Hudson’s Bay Company

Certain statements made in this news release, including, but not limited to, the benefits that are expected to result from the acquisition of GALERIA, growth strategies and opportunities for GALERIA as a result of contemplated strategic initiatives, HBC’s prospect for future European growth opportunities, and earnings guidance in respect of Sales for fiscal 2016, and other statements that are not historical facts, are forward-looking. Often but not always, forward-looking statements can be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “believe”, “estimate”, “plan”, “could”, “should”, “would”, “outlook”, “forecast”, “anticipate”, “foresee”, “continue” or the negative of these terms or variations of them or similar terminology.

Implicit in forward-looking statements in respect of Sales for fiscal 2016, are certain current assumptions, including, among others, HBC achieving low single digit same store sales growth on a constant currency basis in fiscal 2016, HBC opening new stores and assumptions regarding currency exchange rates for fiscal 2016. Specifically, we have assumed the following exchange rates for fiscal 2016: € 1 = C$1.50; US$1 = C$1.32. These current assumptions, although considered reasonable by HBC at the time of preparation, may prove to be incorrect. Readers are cautioned that actual future operating results and economic performance of HBC, including with respect to our anticipated Sales for fiscal 2016, are subject to a number of risks and uncertainties, including, among other things described below, general economic, market and business conditions, changes in foreign currency rates from those assumed, the risk that HBC may not achieve same store sales growth on a constant currency basis, and could differ materially from what is currently expected as set out above.

Although HBC believes that the forward-looking statements in this news release are based on information and assumptions that are current, reasonable and complete, these statements are by their nature subject to a number of factors that could cause actual results to differ materially from management’s expectations and plans as set forth in such forward-looking statements for a variety of reasons. Some of the factors – many of which are beyond HBC’s control and the effects of which can be difficult to predict – include, among others: (a) the risk that the anticipated benefits and growth opportunities from the GALERIA acquisition cannot be realized; (b) the ability of HBC to retain and attract key GALERIA personnel and for GALERIA to maintain relationships with customers, suppliers and other business partners; (c) credit, market, currency, operational, liquidity and funding risks generally, including changes in economic conditions, interest rates or tax rates; and (d) risks and uncertainties relating to information management, technology, supply chain, product safety, changes in law, competition, seasonality, commodity price and business.

HBC cautions that the foregoing list of important factors and assumptions is not exhaustive and other factors could also adversely affect its results. For more information on the risks, uncertainties and assumptions that could cause HBC’s actual results to differ from current expectations, please refer to the “Risk Factors” section of HBC’s Annual Information Form dated April 30, 2015, HBC’s second quarter Management Discussion & Analysis dated September 10, 2015, as well as HBC’s other public filings, available at www.sedar.com and at www.hbc.com.

The forward-looking statements contained in this news release describe HBC’s expectations at the date of this news release and, accordingly, are subject to change after such date. Except as may be required by applicable Canadian securities laws, HBC does not undertake any obligation to update or revise any forward-looking statements contained in this news release, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on these forward-looking statements.

1 See Forward Looking Statements for additional information.

FOR GALERIA KAUFHOF GROUP

MEDIA RELATIONS:
Gerd Koslowski, +49 (0)221 223-5595
Head of Corporate Communications
gerd.koslowski@kaufhof.de
or

FOR HBC
MEDIA RELATIONS:
Tiffany Bourré, (905) 595-7184
Director, External Communications
tiffany.bourre@hbc.com
or

Hering Schuppener
Dirk von Manikowsky, +49 (0)211 43079-265
dvonmanikowsky@heringschuppener.com
or

INVESTOR RELATIONS:, (416) 256-6745
investorrelations@hbc.com

Source: Hudson’s Bay Company

News Provided by Acquire Media

Hudson’s Bay Company unveils steps to deliver enhanced all-channel customer experience, accelerate financial performance and drive future success

  • Actions to Generate Additional $75 Million in Expected Annualized Cost Savings and Synergies beyond Previously Announced Synergies from the Integration of Saks Incorporated
  • Realignment Supports Growth Areas of the Business, including Digital Offering and Geographic Expansion

TORONTO & NEW YORK, 2015-9-30 — /EPR Retail News/ — Hudson’s Bay Company (TSX:HBC) today announced a series of actions to position the Company to deliver an enhanced all-channel customer experience, accelerate financial performance and drive future success. Reflecting the Company’s substantial growth and strong performance since the 2013 acquisition of Saks Incorporated, the initiatives are designed to enable HBC to invest greater resources in the areas of the business offering the most significant return on investment potential, while leveraging strengths across its retail banners and increasing efficiencies.

The actions being announced for the North American business today include:

  • Establishing new Centers of Excellence for the Customer Relationship Management, Creative, and Human Resources functions, complementing existing Centers of Excellence some of which include: Digital, Information Technology, Legal, Logistics, and Real Estate;
  • Consolidating key business functions to enable more productive and efficient operations and refocus resources on customer-facing aspects of the business;
  • Implementing substantial technology enhancements and accelerating the consolidation to one common platform across Company banners, under the leadership of newly hired executives Janet Schalk, Chief Information Officer, and Dion Rooney, Executive Vice President, HBC Digital; and
  • Aligning resources in business functions to match current and future business strategy while investing in areas that will drive growth.

Richard Baker, HBC’s Governor and Executive Chairman, commented, “Through organic growth and acquisitions, HBC has established itself as one of the fastest-growing department store retailers in North America and a truly unique global company. This significant growth has created meaningful opportunities for us to further build our business while operating even more effectively. To that end, we are focused on taking the appropriate next steps to position HBC to deliver continued industry-leading performance and long-term growth, while best delivering for our customers in a constantly evolving industry environment.”

Jerry Storch, CEO of HBC, continued, “By enabling our teams to work smarter, faster and more effectively, we expect to achieve substantial cost savings and continue to invest in our core strategies to build our business, drive further improved financial performance and support the long-term vision of HBC. We have an enormously talented team in place, and will continue to build our world-class capabilities.”

The actions announced today are expected to result an annualized cost savings and synergies during fiscal year 2016 totaling $75 million, in addition to the previously announced synergies the Company is on track to achieve in connection with the integration of Saks Incorporated. The Company anticipates taking a charge of approximately $20 million in the third quarter of fiscal year 2015 in connection with the realignment.

Since the Company’s 2013 acquisition of Saks Incorporated, it has hired more than 2,000 Associates in connection with new store growth and the expansion of the digital offering across its store banners. As that integration has proceeded, the organization has been positioned to operate more efficiently. Consequently, the realignment announced today includes a reduction in positions at headquarters and in corporate functions across HBC’s store banners, impacting approximately 265 Associates in North America. Affected Associates will receive a severance package and outplacement support to help ease their transition and will be considered for open positions with HBC as appropriate.

The benefits from the realignment will support HBC’s overarching growth strategies, including continuing to strengthen its digital capabilities and all-channel offering, while enhancing store environments across the Company’s banners through renovations and strategic merchandising initiatives. In addition, the Company will be investing in store growth in 2016, including the opening of seven Saks Fifth Avenue locations and 25 OFF 5TH locations, in part through the expansion of both banners into Canada.

“Overall, we are excited about the great opportunities that lie ahead and believe that our new North American structure puts us in an even better position for the future. As we move forward, we are ever mindful of HBC’s Core Values and Winning Ways, including being passionate about our future, acting with integrity in all we do, and building world-class teams,” Mr. Storch said.

About Hudson’s Bay Company
Hudson’s Bay Company, founded in 1670, is North America’s longest continually operated company. Today, HBC offers customers a range of retailing categories and shopping experiences primarily in the United States and Canada. Our leading banners – Hudson’s Bay, Lord & Taylor, Saks Fifth Avenue and Saks Fifth Avenue OFF 5TH – offer a compelling assortment of apparel, accessories, shoes, beauty and home merchandise. Hudson’s Bay is Canada’s most prominent department store with 90 full-line locations, two outlet stores and thebay.com. Lord & Taylor operates 50 full-line locations primarily in the northeastern and mid-Atlantic U.S., four Lord & Taylor outlet locations and lordandtaylor.com.Saks Fifth Avenue, one of the world’s pre-eminent luxury specialty retailers, comprises 38 U.S. stores, five international licensed stores and saks.com. OFF 5TH offers value-oriented merchandise through 86 U.S. stores and saksoff5th.com. Home Outfitters is Canada’s largest kitchen, bed and bath specialty superstore with 66 locations. Hudson’s Bay Company trades on the Toronto Stock Exchange under the symbol “HBC”.

Forward-Looking Statements

Information in this press release that is not current or historical factual information may constitute forward-looking information within the meaning of securities laws, including statements regarding the Company’s North American realignment plan that is expected to result in $75 million of annualized cost savings and synergies in fiscal 2016, the benefits expected to be realized from such realignment plan, and the Company being on track to achieve $100 millionin synergies related to the integration of Saks Incorporated. This information is based on certain current assumptions regarding expected growth, results of operations, performance, and business prospects and opportunities. While the Company considers these assumptions to be reasonable, based on information currently available, they may prove to be incorrect. Forward-looking information is subject to a number of risks, uncertainties and other factors that could cause actual results to differ materially from what the Company currently expects. These risks, uncertainties and other factors include, but are not limited to: ability to execute retailing growth strategies, ability to continue same store sales growth, changing consumer preferences, marketing and advertising program success, damage to brands and dependence on vendors, ability to realize synergies and growth from the Saks acquisition, ability to make successful acquisitions and investments, constating documents discouraging favorable takeover attempts, successful inventory management, loss or disruption in centralized distribution centers, ability to upgrade and maintain our information systems to support the organization and protect against cyber-security threats, privacy breach, risks relating to our size and scale, loss of key personnel, ability to attract and retain qualified employees, deterioration in labour relations, ability to maintain pension plan surplus, funding requirement of Saks pension plan, limits on insurance policies, loss of intellectual property rights, insolvency risk of parties which we do business with or their unwillingness to perform their obligations, exposure to changes in the real estate market, successful operation of the joint ventures to allow us to realize the anticipated benefits, loss of flexibility with respect to properties in the joint ventures, the possibility that the anticipated benefits from the Galeria Holding acquisition cannot be realized, exposure to environmental liabilities, liabilities associated with Target Corporation, changes in demand for current real estate assets, increased competition, change in spending of consumers, international operational risks, fluctuations in the U.S. and Canadian dollars, increase in raw material costs, seasonality of business, extreme weather conditions or natural disasters, ability to manage indebtedness and cash flow, risks related with increasing indebtedness, restrictions of existing credit facilities reducing flexibility, ability to maintain adequate financial processes and controls, ability to maintain dividends, ability of a small number of shareholders to influence the business, uncontrollable sale of the Company’s common shares by significant shareholders could affect share price, increase in regulatory liability, increase in product liability or recalls, increase in litigation, developments in the credit card and financial services industries, other risks inherent to our business and/or factors beyond our control which could have a material adverse effect on us.

HBC cautions that the foregoing list of important factors and assumptions is not exhaustive and other factors could also adversely affect its results. For more information on the risks, uncertainties and assumptions that could cause HBC’s actual results to differ from current expectations, please refer to the “Risk Factors” section of HBC’s Annual Information Form dated April 30, 2015, HBC’s second quarter Management Discussion & Analysis dated September 10, 2015, as well as HBC’s other public filings, available at www.sedar.com and at www.hbc.com.

The forward-looking statements contained in this news release describe HBC’s expectations at the date of this news release and, accordingly, are subject to change after such date. Except as may be required by applicable Canadian securities laws, HBC does not undertake any obligation to update or revise any forward-looking statements contained in this news release, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on these forward-looking statements.

MEDIA CONTACT:
Hudson’s Bay Company
Tiffany Bourré, 905-595-7184
Director, External Communications
tiffany.bourre@hbc.com
or
INVESTOR RELATIONS:
416-256-6745
investorrelations@hbc.com

Source: Hudson’s Bay Company

News Provided by Acquire Media

Hudson’s Bay Company, Triple Five add three iconic retail banners to American Dream New Jersey

SAKS FIFTH AVENUE, LORD & TAYLOR, AND SAKS FIFTH AVENUE OFF 5TH TO OPEN IN NEW RETAIL AND ENTERTAINMENT COMPLEX

TORONTO & NEW YORK, 2015-9-15 — /EPR Retail News/ — Hudson’s Bay Company (HBC) and Triple Five are pleased to announce the addition of three iconic retail banners to American Dream New Jersey: Saks Fifth Avenue, Lord & Taylor, and Saks Fifth Avenue OFF 5TH. Opening in late summer 2017, the mega complex will house a mix of retail, restaurants and entertainment, and welcome 40 million visitors annually. The HBC stores are all slated to open in late summer 2017.

“American Dream is one of the most unique projects in the world – it is elevating the shopping center format to combine retail, dining, lifestyle and entertainment to create a total experiential destination. We believe that shopping is an entertainment experience, and the American Dream concept exemplifies that philosophy fully,” said Richard Baker, Governor and Executive Chairman, Hudson’s Bay Company.

“The American Dream concept presents an exciting opportunity for the HBC portfolio of brands as we continue to drive forward our growth strategy in North America. Never have we housed all three of our U.S. banners in one location. Each one – Saks, Lord & Taylor and Saks OFF 5TH – caters to a distinct consumer segment, and American Dream positions us to service every consumer, through luxury, better department store, and off-price formats,” stated Jerry Storch, CEO,Hudson’s Bay Company.

With such a large and diverse customer demographic, American Dream will be the perfect platform for HBC to deliver the exceptional product and experience each banner is renowned for. The new 131,906 sq. ft. Saks Fifth Avenue and new 119,605 sq. ft. Lord & Taylor stores will be located within “The Collections” area of American Dream, a sophisticated and elegant architectural showcase of luxury and lifestyle retailing. The new 30,000 sq. ft. Saks Fifth Avenue OFF 5TH will be located in the 3rd level off-price district.

“American Dream welcomes Hudson’s Bay Company and is very excited to introduce the next generation of their state-of-the-art department stores to the NY Metropolitan market and the world. Our customers will be thrilled that such popular and iconic mainstays of New York shopping, Saks Fifth Avenue, Lord & Taylor and Saks Fifth Avenue OFF 5TH, will be launching their newest stores at American Dream. We believe this match will be an extraordinary success and our customers and visitors will be amazed at this new and unparalleled experience in fashion shopping.” Don Ghermezian, President, Triple Five.

About Hudson’s Bay Company
Hudson’s Bay Company, founded in 1670, is North America’s longest continually operated company. Today, HBC offers customers a range of retailing categories and shopping experiences primarily in the United States and Canada. Our leading banners – Hudson’s Bay, Lord & Taylor, Saks Fifth Avenue and Saks Fifth Avenue OFF 5TH – offer a compelling assortment of apparel, accessories, shoes, beauty and home merchandise. Hudson’s Bay is Canada’s most prominent department store with 90 full-line locations, two outlet stores and thebay.com. Lord & Taylor operates 50 full-line locations primarily in the northeastern and mid-Atlantic U.S., four Lord & Taylor outlet locations and lordandtaylor.com.Saks Fifth Avenue, one of the world’s pre-eminent luxury specialty retailers, comprises 38 U.S. stores, five international licensed stores and saks.com. OFF 5TH offers value-oriented merchandise through 86 U.S. stores and saksoff5th.com. Home Outfitters is Canada’s largest kitchen, bed and bath specialty superstore with 66 locations. Hudson’s Bay Company trades on the Toronto Stock Exchange under the symbol “HBC”.

About American Dream
American Dream is being developed by The Triple Five Group of Companies, owners of the two largest shopping and entertainment centers in North America, Mall of America and West Edmonton Mall.

Opening in late summer 2017, phase one of American Dream will house approximately 3 Million Square feet of shopping, entertainment and attractions and host 40 Million guests annually.

Hudson’s Bay Company
Tiffany Bourré, 905-595-7184
Director, External Communications
tiffany.bourre@hbc.com
or
American Dream
Debbie Patire, 201-340-2919
Senior Vice President Marketing
debbie.patire@americandream.com

Source: Hudson’s Bay Company

News Provided by Acquire Media

Hudson’s Bay Company announces the appointment of Janet Schalk to Chief Information Officer

TORONTO, 2015-8-21— /EPR Retail News/ — Hudson’s Bay Company (“HBC”) (TSX:HBC) is pleased to announce the appointment of Janet Schalk to Chief Information Officer. In this role, Ms. Schalk will be responsible for leading the information technology strategy for HBC, while continuing to drive the Company’s roadmap of common systems, integrated support, business architecture and analytics. Ms. Schalk brings more than 10 years of senior leadership experience in the information technology field and is a recognized leader in innovation and emerging technologies, with a strong foundation in customer service.

“Janet is a proven leader, and her success in creating a strategic information technology function that drives customer engagement across all channels will be critical in advancing HBC’s IT systems and supporting the Company’s growth,” stated Jerry Storch, Chief Executive Officer, Hudson’s Bay Company. “We look forward to welcoming Janet to HBC and moving ahead with our plans for innovation and growth.” Ms. Schalk joins HBC’s Executive Leadership Team and will report directly to the Office of the Chairman, comprising Richard Baker, Chairman and Governor, and Jerry Storch, CEO.

Prior to joining HBC, Ms. Schalk served as Executive Vice President and CIO for Kohl’s. Previous to Kohl’s, Ms. Schalkspent four years as EVP and head of Global IT for Target Corporation.

Ms. Schalk holds an MBA from the University of Chicago Graduate School of Business and a Bachelor of Arts degree in Mathematics and Economics from Northwestern University.

About Hudson’s Bay Company
Hudson’s Bay Company, founded in 1670, is North America’s oldest company. Today, HBC offers customers a range of retailing categories and shopping experiences primarily in the United States and Canada. Our leading banners -Hudson’s Bay, Lord & Taylor, Saks Fifth Avenue and Saks Fifth Avenue OFF 5TH – offer a compelling assortment of apparel, accessories, shoes, beauty and home merchandise. Hudson’s Bay is Canada’s most prominent department store with 90 full-line locations, two outlet stores and thebay.com. Lord & Taylor operates 50 full-line locations primarily in the northeastern and mid-Atlantic U.S., four Lord & Taylor outlet locations and lordandtaylor.com. Saks Fifth Avenue, one of the world’s pre-eminent luxury specialty retailers, comprises 38 U.S. stores, five international licensed stores and saks.com. OFF 5TH offers value-oriented merchandise through 85 U.S. stores and saksoff5th.com. The Company also operates Home Outfitters, Canada’s largest kitchen, bed and bath specialty superstore with 67 locations. Hudson’s Bay Company trades on the Toronto Stock Exchange under the symbol “HBC”.

Media Contact:
Hudson’s Bay Company
Tiffany Bourré, 905-595-7184
Director, External Communications
tiffany.bourre@hbc.com
or
Investor Relations:
416-256-6745
investorrelations@hbc.com

Source: Hudson’s Bay Company

Canada-based Hudson’s Bay Company to acquire Metro’s department store group GALERIA Kaufhof and its Belgian subsidiary Inno for €2.825 billion

  • Creates a Global Platform, Positioning HBC for Future Growth in Europe
  • Transaction Value of €2.825 Billion Agreed, Including the Assumption of Certain Liabilities
  • HBC Plans to Work with GALERIA Kaufhof’s Existing Management Team to Further Strengthen Offerings to Consumers
  • Agreement Includes Extensive Commitments to Maintain Employment Levels and Store Count, GALERIA Kaufhof to Remain Headquartered in Cologne
  • Transaction Expected to Deliver Immediate Value to HBC Shareholders
  • METRO GROUP Expects Positive EBIT Effect of Around €0.7 Billion from the Transaction
  • Transaction Should be Completed by the End of the Third Quarter of 2015
  • Joint Press Conference on Monday in Cologne at 11:15 AM

Düsseldorf, Germany, 2015-6-15 — /EPR Retail News/ — Canada-based Hudson’s Bay Company, one of the foremost retail operators in North America and its longest continually operated company, and Düsseldorf-based METRO GROUP today announced that they have entered into a definitive agreement under which HBC will acquire Metro’s department store group GALERIA Kaufhof and its Belgian subsidiary Inno for a transaction value of €2.825 billion, including the assumption of certain liabilities. The transaction has been approved by the Board of Directors of HBC as well as the Supervisory Board of METRO AG. It is expected to close by the end of the third quarter of 2015.

As a result of the acquisition, HBC will have:

  • 464 Locations Worldwide, 8 Leading Banners
  • C$13 (€9.0) Billion in Revenue(1)
  • Pro Forma Sales by Market: 44% US; 31% Germany 23% Canada, 2% Belgium
  • Strong Management Teams in North America and Europe

The transaction is a further extension of HBC’s proven strategy of growing through mergers and acquisitions, with GALERIA Kaufhof further diversifying HBC’s portfolio and positioning the Company as a premier international retailer. Specifically, HBC is taking over 103 GALERIA Kaufhof stores in Germany from METRO GROUP, including 59 properties in prime inner-city locations that are part of the GALERIA Real Estate portfolio. As part of the transaction, HBC is also acquiring 16 Sportarena stores, 16 GALERIA Inno department stores located in Belgium, as well as various logistics centres, warehouses and other properties, and the long-standing GALERIA Kaufhof head office in Cologne.

Richard Baker, HBC’s Governor and Executive Chairman, said, “This is an exciting transaction that demonstrates our proven growth formula in action, and it is the right investment and the right time. We have been carefully surveying the European retail landscape for many years for a potential expansion opportunity and have watched GALERIA Kaufhof build on its exceptional real estate to become the #1 department store in Germany. We are excited to work with the GALERIA Kaufhof management team to leverage our expertise, and we welcome GALERIA Kaufhof to our portfolio of dynamic brands.”

Olaf Koch, Chairman of METRO’S Management Board, said, “With Hudson’s Bay Company, we have found the ideal partner for a successful future of GALERIA Kaufhof. HBC pursues a strategy of international growth and GALERIA Kaufhof plays a central role in this expansion. Beyond the attractive financial and transactional aspects, a key factor for us was the fact that HBC has made binding guarantees to take on the approximately 21,500 GALERIA Kaufhof employees in Germany and Belgium. We also would like to thank all employees of GALERIA Kaufhof and its management for their outstanding contribution to the business and their great work. Without their dedication, the company would not have achieved, and maintained, its No 1 position.”

With this transaction METRO GROUP will achieve a positive cash inflow of around €1.6 billion and significantly reduce its rating-relevant net debt by around €2.7 billion. Moreover METRO GROUP expects a positive EBIT effect of around €0.7 billion from the transaction.

As part of the Agreement, HBC will continue to operate GALERIA Kaufhof, Inno and Sportarena under their current brand banners. No significant changes, beyond those already announced by GALERIA Kaufhof, are currently anticipated with respect to the store footprints or staffing levels at any of the brand banners, and GALERIA Kaufhof will remain headquartered in Cologne. When combined with HBC’s current portfolio of iconic store banners, including Hudson’s Bay, Lord & Taylor, Saks Fifth Avenue, Saks OFF 5TH and Home Outfitters, HBC will operate 464 stores under 8 banners, with 44% of sales generated in the United States, 31% in Germany, 23% in Canada and 2% in Belgium.

GALERIA Kaufhof’s existing management team is expected to remain in place following the close of the transaction, and will work closely with HBC’s leadership to explore opportunities to further strengthen GALERIA Kaufhof’s offerings to consumers. These are expected to include: expanding the GALERIA Kaufhof brand matrix; aggressively growing GALERIA Kaufhof’s eCommerce; optimizing key merchandise categories; and pursuing the opportunity to introduce the Saks Fifth Avenue and the Saks OFF 5TH banners in Germany and Belgium, and the potential to build within the existing store network to improve productivity and optimize floor space.

Kaufhof Acquisition Strengthens HBC’s Position as a Premier International Retailer

Jerry Storch, CEO of HBC, said, “This transaction is a significant step forward in our plans to become a premier global retailer. We look forward to working with GALERIA Kaufhof’s management team as we bring together two geographically complementary businesses, diversifying HBC’s revenue base with leading banners in Canada, the United States, Germany and Belgium. This is a strong foundation to explore additional opportunities for growth throughout the Continent.”

Lovro Mandac, Chairman and CEO of Galeria Holding, said: “GALERIA Kaufhof has worked in the past years to achieve a good position in the German retailing market through a continual willingness to change and a high customer orientation. That is thanks to the performance of the Associates and the leadership team. As a result, our company is now well-armed for the future with Hudson’s Bay as our new owner. It is good and important for the company that there is now clarity about the ownership question. We thank METRO GROUP for their support in the past years and look forward to cooperating with Hudson’s Bay on the future positioning of the company.”

Building on GALERIA Kaufhof’s Leadership Position in the German Retail Marketplace

Don Watros, President of HBC International, commented, “With GALERIA Kaufhof, we gain a best-in-market, successful retailer with a network of very well-maintained stores, a beloved heritage and a brand that resonates strongly with German consumers. Based on our extensive experience in building outstanding department stores, we intend to leverage our expertise and proven strategies to further build GALERIA Kaufhof for a strong, all-channel future. We are looking forward to working with the 21,500 highly skilled and motivated employees and in close cooperation with GALERIA Kaufhof’s works councils and unions.”

HBC is structuring the transaction and financing similar to previous transactions in Canada and the United States. BofA Merrill Lynch is acting as exclusive financial advisor to HBC on the transaction. Willkie Farr & Gallagher LLP is acting as M&A legal counsel, and Stikeman Elliott LLP is acting as company legal counsel. METRO is being advised by JP Morgan and Deutsche Bank and Clifford Chance is serving as legal counsel.

METRO GROUP had decided to sell its department store subsidiary because the Düsseldorf-based group wishes to focus more strongly on its wholesale business METRO Cash & Carry, its consumer electronics division Media-Saturn and its hypermarket chain Real in the future. “Not only has HBC submitted the best offer in terms of a secure future for GALERIA Kaufhof, it has also made a valuable bid for our shareholders,” said Olaf Koch. “We will also use the proceeds from the sale of GALERIA Holding GmbH for greater investment in our other sales channels, thus ensuring the group’s future growth. In this way, we are strengthening METRO GROUP for our customers and in the interests of all our employees and shareholders.”

Both companies will hold a Press Conference this Monday at 11:15 h German time at the Cologne Marriott Hotel which will be broadcasted online. A dedicated invitation to the media will be sent out soon.

METRO GROUP will also invite to an analysts call, details will be sent out soon.

Prior to an HBC conference call for its investors and analysts later this morning, HBC intends to issue an additional press release providing further financial detail with respect to the transaction, structure and expected impact of the addition of GALERIA Kaufhof to HBC.

Note: Assumes € 1 = C$1.387
(1) 52 weeks ended May 2, 2015 for HBC and 12 months ended March 31, 2015 for Galeria.

About Galeria Kaufhof
GALERIA Holding GmbH is a group of companies with sales of EUR 3.1bn and 21,500 employees (2013/14 business year). It comprises the operating department store business of GALERIA Kaufhof GmbH in Germany (103 stores), Sportarena GmbH (16 stores) and GALERIA Inno in Belgium (16 stores). Galeria KAUFHOF and GALERIA Inno are market leaders in their respective countries and they interlink their online shops and their bricks-and-mortar business through a successful multi-channel strategy. GALERIA Real Estate Holding GmbH, as a subsidiary of GALERIA Holding GmbH, is responsible for the strategic development of the 59 inner-city retail properties under its management in Germany. GALERIA Real Estate Group contributes to maintaining and increasing the value of the real estate portfolio. GALERIA Immobilienservice GmbH is the subsidiary of GALERIA Holding GmbH that performs various services related to the department store properties.

About Hudson’s Bay Company
Hudson’s Bay Company, founded in 1670, is North America’s oldest company. Today, HBC offers customers a range of retailing categories and shopping experiences primarily in the United States and Canada. Our leading banners – Hudson’s Bay, Lord & Taylor, Saks Fifth Avenue and Saks Fifth Avenue OFF 5TH – offer a compelling assortment of apparel, accessories, shoes, beauty and home merchandise. Hudson’s Bay is Canada’s most prominent department store with 90 full-line locations, two outlet stores and thebay.com. Lord & Taylor operates 50 full-line locations primarily in the northeastern and mid-Atlantic U.S., four Lord & Taylor outlet locations and lordandtaylor.com. Saks Fifth Avenue, one of the world’s pre-eminent luxury specialty retailers, comprises 39 U.S. stores, five international licensed stores and saks.com. OFF 5TH offers value-oriented merchandise through 83 U.S. stores and saksoff5th.com. The Company also operates Home Outfitters, Canada’s largest kitchen, bed and bath specialty superstore with 67 locations. Hudson’s Bay Company trades on the Toronto Stock Exchange under the symbol “HBC”.

About METRO GROUP
METRO GROUP is one of the most important international trading companies. In the financial year 2013/14, it generated sales of about €63 billion. The company operates around 2,200 stores in 30 countries and has a headcount of around 250,000 employees. The performance of METRO GROUP is based on the strength of its sales brands that operate independently in their respective market segments: METRO/MAKRO Cash & Carry – the international leader in self-service wholesale –, Media Markt and Saturn – the European market leader in consumer electronics retailing – Real hypermarkets and Galeria Kaufhof department stores.