Hudson's Bay growth driven by digital and discount

Hudson's Bay (TSE:HBC) reported positive fourth quarter and full-year financial results, driven by strong gains in its digital and off-price channels.

The Canadian department store chain had consolidated (constant currency) comparable store sales of 1.8 percent for the quarter and 2.5 percent for the year. Digital sales grew 22.8 percent and 23.2 percent for the quarter and year respectively.

"Our growth continued in the fourth quarter as our team executed our strategies and focused on innovation around the world. Our retail banners are uniquely diversified across both geography and retail concepts," said CEO Jerry Storch. "Online sales were especially strong, reflecting our focus on building superior digital capabilities and further integrating our brick-and-mortar and e-commerce businesses."

The Saks Off 5th business had same-store sales growth of 2 percent for the quarter and 6.3 percent for the year. The off-price format is considered a key part of Hudson Bay's growth

In January, Hudson's Bay purchased flash sale site Gilt for $250 million with plans to integrate that brand into Saks Off 5th outlets.

For more:
-See this Hudson's Bay financial release

Related stories:
Why Hudson's Bay bought Gilt
Hudson's Bay in talks to acquire Gilt
Hudson's Bay performing well in Canada, hit hard in US
Saks expands Off 5th locations in Canada
Off 5th expands in New York