• Q1 profit of US$2.4bn
  • Sales more than double to $1.85bn

Canadian department store operator Hudson's Bay Company swung to a profit in its first-quarter after its acquisition of Saks last year more than doubled retail sales.

The Toronto-based retailer, which acquired Saks last November for US$2.4bn, recorded earnings of CAD176m in the period ended 3 May. This compared to a net loss of CAD82m last year.

Net sales totaled CAD1.85bn from CAD884m last year, while consolidated same store sales grew 2.8% with increases of 2.5% at DSG, 2.6% at Saks Fifth Avenue and 15.1% at OFF 5th.

"Overall first quarter performance was in the range of our expectations," said CEO Richard Baker. "We are encouraged by the business trends witnessed through the quarter, which bode well for the balance of this year."

The company reaffirmed its outlook for fiscal 2014 of total sales of CAD7.8bn to CAD8.1bn, implying low-to-mid single-digit consolidated same store sales growth, and normalized EBITDA of CAD580m to CAD620m.