Executive Summary

• Hudson’s Bay Company reported 3Q17 revenues of C$3.2 billion, down 4.2% year over year and slightly below the C$3.4 billion consensus estimate. Adjusted EPS was C$(1.33), versus C$(0.69) in the year-ago quarter and below the C$(0.74) consensus estimate.
• Total comparable sales were down 3.2% year over year on a constant-currency basis. Comps were down 3% at HBC Europe and down 3.7% at DSG (which refers, collectively, to the Hudson’s Bay, Lord & Taylor and Home Outfitters banners) on a constant-currency basis.
• The company’s transformation plan remains on track to deliver annual cost savings of C$350 million. The company continues to look for ways to reposition its physical retail space following the sale of its Lord & Taylor store on New York’s Fifth Avenue to WeWork.