Hudson's Bay Releases Another Ugly Earnings Report

The first quarter of 2017 was weak across the board for U.S. department stores. Multinational department-store giant Hudson's Bay (TSX: HBC) was caught up in the carnage. Comparable store sales fell 2.9%, and the company posted a big quarterly loss.

Sales trends improved at many of Hudson Bay's chains during the second quarter. However, gross margin plunged, causing the company to report another big loss. These weak results highlight how Hudson's Bay -- and especially its Lord & Taylor chain -- cannot compete effectively with its top upscale rival, Nordstrom (NYSE: JWN).

In the first quarter, Hudson's Bay reported flat comp sales for its European operations but a sharp comp sales decline in North America. In constant currency, comparable-store sales fell 2.9% on a companywide basis.

Source: Fool.com