Exhibit 99.1
Hudson Provides Trading Update
For the Third Quarter and Nine Months Ended September 30,
2020
East Rutherford, NJ – November 3, 2020 – Hudson
(NYSE: HUD), a North American travel experience leader with more
than 1,000 stores in airports, commuter hubs, landmarks and tourist
destinations, today provided a trading update for the third quarter
and nine months ended September 30, 2020.
Hudson
reported improved sales trends in the third quarter of 2020
relative to the year-over-year sales performance in the second
quarter of 2020. Turnover for the three months ended September 30,
2020 decreased from the prior year period by 74.1% to $135.4
million, while net sales declined by 74.4% to $130.9 million. Duty
Paid sales have recovered more rapidly than Duty Free sales, due to
the limited number of international flights and the continued
closure of the U.S./Canada border.
Turnover
for the nine months ended September 30, 2020 decreased by 63.6%
from the prior year period to $538.6 million, while net sales
declined by 63.9% to $521.5 million.
After
having temporarily closed over 700 of its approximately 1,000
stores at the height of the pandemic, Hudson has continued to
gradually reopen stores and welcome back a number of furloughed
team members in alignment with the resumption of air and other
travel. Working in close partnership with airports and other
landlords to best serve the needs of both travelers and essential
airport/commuter hub workers, Hudson has reopened over 300 stores
as of October 31, 2020.
While
strategically reopening stores as passengers return and when
financially prudent to do so, Hudson has continued to focus on cost
savings initiatives and rent waivers and deferrals, resulting in
significantly reduced cash usage as the year has progressed, with
cash usage decreasing from $92.4 million in the first quarter - to
$21.1 million in the second quarter - and $14.3 million in the
third quarter of 2020.
COVID-19-related
concerns, event cancellations and business and government-imposed
restrictions led to a reduction in passenger travel beginning in
the first quarter of 2020. However, North American passenger
volumes have increased significantly since April and the
year-over-year volume trends have improved consecutively each month
from May through October. U.S. airport passenger levels were down
approximately 65% year-over-year in the month of October, compared
to 95% down at the height of the COVID-19 pandemic in April 2020,
highlighting the resiliency of the travel industry and the initial
restoration of passenger confidence, which is driving the continued
rebound of Hudson’s business.
The
Company has also had the opportunity to open up new stores across
its footprint in the first nine months of 2020, signaling
Hudson’s continued execution of its business strategy. This
includes four stores at
Salt Lake City International Airport; two New York branded travel
convenience stores at the new Arrivals and Departures Hall in
LaGuardia Airport Terminal B; and a locally-inspired travel
convenience concept at Nashville International Airport.
Additionally, Hudson has rolled out vending machines that provide
24/7 access to health and safety supplies, introduced Sunglass Hut
shop-in-shops in a number of its travel convenience stores, and
expanded self-checkout capabilities to minimize contact and speed
up checkout.
Roger
Fordyce, CEO of Hudson, stated, “While the past seven months
have been challenging, we’re continuing to position the
Company for a strong recovery both in the immediate and long-term
by minimizing our cash spend, optimizing our operational
efficiency, advancing our digital initiatives, and above all,
prioritizing the health and safety of our teams and customers. The
progressive improvement in our business is due in large part to the
support of our team members, customers, business partners and
landlords, for whom we are extremely grateful. As the recovery continues, we are
eager to welcome customers back to our stores as we remain
committed to being the Traveler’s Best Friend in the months
and years to come.”
Dufry Re-Integration
On
August 19, 2020, Hudson announced that it had entered into a
definitive agreement with Dufry AG Group (“Dufry”), its
controlling shareholder with 57.4% ownership of the Company,
pursuant to which Dufry would acquire all of the equity interests
in Hudson that it does not already own for $7.70 in cash for each
Hudson Class A share (the “Transaction”). Upon
completion of the Transaction, Hudson will become an indirect
wholly owned subsidiary of Dufry and will be delisted from the New
York Stock Exchange.
Website Information
We
routinely post important information for investors on the Investor
Relations section of our website, investors.hudsongroup.com. We
intend to use this website as a means of disclosing material
information. Accordingly, investors should monitor the Investor
Relations section of our website, in addition to following our
press releases, SEC filings, public conference calls,
presentations and webcasts. The information contained on, or that
may be accessed through, our website is not incorporated by
reference into, and is not a part of, this document.
About Hudson
Hudson,
a Dufry Company, is a travel experience company turning the world
of travel into a world of opportunity by being the Traveler’s
Best Friend in more than 1,000 stores in airport, commuter hub,
landmark, and tourist locations. Our team members care for
travelers as friends at our travel convenience, specialty retail,
duty free and food and beverage destinations. At the intersection
of travel and retail, we partner with landlords and vendors, and
take innovative, commercial approaches to deliver exceptional
value. To learn more about how we can make your location a travel
destination, please visit us at hudsongroup.com.
Forward-Looking Statements
This
press release contains “forward-looking statements”
within the meaning of the Private Securities Litigation Reform Act
of 1995 (Reform Act). Forward-looking statements are based on our
beliefs and assumptions and on information currently available to
us, and include, without limitation, statements regarding our
business, financial condition, strategy, results of operations,
certain of our plans, objectives, assumptions, expectations,
prospects and beliefs, the effects of the novel coronavirus
(COVID-19) on the demand for air and other travel, our supply
chain, as well as the impact on our business, financial condition
and results of operations and statements regarding other future
events or prospects. Forward-looking statements include all
statements that are not historical facts and can be identified by
the use of forward-looking terminology such as the words
“believe,” “expect,” “plan,”
“intend,” “seek,” “anticipate,”
“estimate,” “predict,”
“potential,” “assume,”
“continue,” “may,” “will,”
“should,” “could,” “shall,”
“risk” or the negative of these terms or similar
expressions that are predictions of or indicate future events and
future trends. By their nature, forward-looking statements involve
risks and uncertainties because they relate to events and depend on
circumstances that may or may not occur in the future. We caution
you that forward-looking statements are not guarantees of future
performance and that our actual results of operations, financial
condition and liquidity, the development of the industry in which
we operate and the effect of acquisitions on us may differ
materially from those made in or suggested by the forward looking
statements contained in this press release. In addition, even if
our results of operations, financial condition and liquidity, the
development of the industry in which we operate and the effect of
acquisitions on us are consistent with the forward-looking
statements contained in this press release, those results or
developments may not be indicative of results or developments in
subsequent periods. Forward-looking statements speak only as of the
date they are made, and we do not undertake any obligation to
update them in light of new information or future developments or
to release publicly any revisions to these statements in order to
reflect later events or circumstances or to reflect the occurrence
of unanticipated events. Factors that may cause our actual results
to differ materially from those expressed or implied by the
forward-looking statements in this press release, or that may
impact our business and results more generally, include, but are
not limited to, the risks described under “Item 3. Key
Information—D. Risk factors” of our Annual Report on
Form 20-F for the year ended December 31, 2019 which may be
accessed through the SEC’s website at
https://www.sec.gov/edgar. You should read these risk factors
before making an investment in our shares.
For
further information, please contact:
Investor/Media Contact
Cindi
Buckwalter
VP of
Investor Relations & Corporate Communications
investorrelations@hudsongroup.com
communications@hudsongroup.com