Hudson's Bay Company sees turnover and profit drop

Canadian retailer Hudson’s Bay Company has seen its sales and gross operating profit shrink in the third quarter of 2019. On the bright side, the company has reached a settlement with a Dutch landlord regarding its intended withdrawal from the Netherlands.

Fewer shops

Hudson’s Bay Company recorded a 2.3 % turnover decrease to 1.84 billion Canadian dollars (1.3 billion euros), which was partly due to a reduction in the number of stores, but like-for-like revenue also decreased 1.7 %. Gross operating profit fell from 124 million to 84 million dollars (60 million euros) as changes in vendor relationships, among other things, put pressure on the company’s profitability.

The company also report also contains a passage regarding its Dutch branch, for which payment deferral has been requested. HBC states that it has settled with one of its landlords, as a result of which the current lease expires in exchange for a direct payment. However, it is unclear which landlord is involved and how many properties are concerned. The amount of the settlement is also not made public, Dutch newspaper AD reports.