HBC Q1 2014/2015 Results

HBC released their results today. 

Highlights of the thirteen-week period ended May 3, 2014  

• Consolidated same store sales, which include Saks, increased 8.6% for the comparable thirteen-week period, or 2.8% on a local currency basis. On a local currency basis, same store sales increased by 2.5% in the DSG, increased by 2.6% at Saks Fifth Avenue and increased by 15.1% at OFF 5TH.  

• Digital commerce sales grew to $207 million, an increase of $186 million compared to the thirteen-week period ended May 4, 2013. The inclusion of Saks in the first quarter of Fiscal 2014 contributed $162 million while Legacy HBC, off of a smaller base, more than doubled, reflecting the Company's continued strategic focus on growing this channel.  

• Gross profit rate, excluding amortization of inventory related purchase price accounting adjustments, was 40.6% of retail sales, or a 30 basis points improvement over the thirteen-week period ended May 4, 2013.  

• Normalized SG&A as a percentage of retail sales was 35.4 % for the thirteen-week period ended May 3, 2014, compared to 37.0% for the thirteen-week period ended May 4, 2013, a 1.6% improvement.  

• Normalized EBITDA was $97 million compared to $29 million for the first quarter of Fiscal 2013 and includes negative impacts of adopting IFRIC 21 of $8 million compared to $2 million for the first quarter of Fiscal 2013 (see New Accounting Policies - Levies section). The increase in Normalized EBITDA of $68 million primarily relates to the inclusion of Saks. As a percentage of retail sales, Normalized EBITDA increased to 5.2% from 3.3% for the first quarter of Fiscal 2013, an increase of 1.9%.