In its second-largest acquisition, Amazon buys the company for $970 million.
Overall sales are up, too, but a profit eludes the store and web retailer.
E-commerce sales increased at Canada-based Hudson’s Bay Co., while the retailer posted an overall loss for the year.
For the fiscal year ended Feb. 2, Hudson’s Bay, No. 100 in the Internet Retailer Top 500 guide, reported:
- Online sales increased to C$136.6 (US$135.1 million) in 2012, a 65.6% increase from C$82.5 million (US$81.6 million) in 2011.
- Overall sales of C$4.077 billion (US$4.032 billion), a 5.9% increase from C$3.849 billion (US$3.807 billion).
- Same-store sales increased 4.0%.
- A loss of C$44.8 million (US$44.3 million), compared with a profit of C$1.45 billion (US$1.43 billion) the prior year.
E-commerce sales accounted for 3.4% of overall sales, compared with 2.1% in 2011.
Hudson’s Bay, which owns 48 Lord & Taylor department stores in the United States and 90 Hudson’s Bay locations in Canada, will put more of its money into e-commerce in 2013. It expects to relaunch LordandTaylor.com and TheBay.com this year, and introduce mobile commerce and enhanced fulfillment capabilities this year, it says in a filing with the Canadian Securities Administrators. In 2012, it spent C$31.6 million (US$31.3 million) on its multichannel initiative, which includes mobile commerce, fulfillment and social media marketing programs, a 203.8% increase from C$10.4 million (US$10.3 million) in 2011.
Hudson’s Bay attributes part of the loss to the closing of many Lord & Taylor stores when Hurricane Sandy hit the Northeastern U.S. last fall, weaker-than-expected sales in the weeks prior to Christmas and clearance sales that reduced profit margins.
For the fourth quarter, Hudson’s Bay reported:
- Online sales of C$58.0 million (US$57.4 million), 62.9% increase from C$35.6 million (US$35.2 million) in the same quarter a year ago.
- Overall sales of C$1.386 billion (US$1.371 billion), a 6.7% increase from C$1.299 billion (US$1.285 billion).
- Same-store sales increased 2.1%
- Net income of C$105.0 million (US$103.9 million), a 46.4% decrease from C$195.8 million (US$193.7 million).
E-commerce accounted for 4.2% of overall sales in the fourth quarter, compared with 2.7% in Q4 2011.