Executive Summary

• Hudson’s Bay reported fiscal 1Q17 EPS of C$(1.21), down from C$(0.58) in the year-ago quarter and below the C$(0.75) consensus estimate. Revenues were C$3.20 billion, down 3.0% year over year and slightly below the C$3.26 billion consensus estimate.
• Comps declined C$94 million, or 2.9%, comprised of flat comps at HBC Europe, down 2.4% at DSG, down 4.8% at Saks Fifth Avenue and down 6.8% at HBC Off Price, on a constant-currency basis.
• Separately, the company announced a Transformation Plan targeting C$350 million in annual savings, as management changes splitting the president roles for Hudson’s Bay and Lord & Taylor.