HBC Announces Dividend despite Increased Loss in Inaugural Report

The Hudson’s Bay Co. has announced to set off a quarterly dividend of an estimated nine cents per share even though the company has faced even more in loss from continuing operations. The announcement alleged the dividend to be paid until Dec. 27 to all shareholders in record on Dec. 19.

The company has declared that it suffered loss from continuing operations of almost $8.5 million, which counts to eight cents per share, in the third quarter. Whereas, the revenue collected in the three months period ending on Oct. 27 was $930.4 million, which is an increase from $896.7 million in the same period in 2011. The net loss of the company, including the $6.5-million gain from discontinued operations, has been calculated to be almost $2 million or two cents per share.

Previously, the company enjoyed net income of almost $1.24 billion, i.e. $11.83 per share, when it went through an extraordinary gain of almost $1.25 billion from discontinued operations. At the time, HBC combined same store sales increased 3.5% in the third quarter, with an increase of 4.5% at Hudson’s Bay and 5.2 cent on a U.S. dollar basis at Lord & Taylor.

The CEO of HBC, Richard Baker, mentioned while declaring the results that “Hudson’s Bay and Lord & Taylor continued to deliver solid, mid-single digit same store sales increases for the third quarter of 2012, including an 8% same store sales increase in October at both banners.” He added that “this continued strong performance has allowed the company to approve an initial quarterly dividend of 9.375 cents per share.”

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