Hudson's Bay Company, the owner of Saks and Lord & Taylor, has gone through a number of changes since its last holiday season. It hired former CVS Health executive, Helena Foulkes, as its CEO, sold its flash-sale website Gilt.com and roughly half its stake in its European operations.
As Hudson's Bay focuses more on its U.S. core business, it needs to show that Saks and Lord & Taylor are strong enough to keep the company afloat.
Saks appears to be in a stronger position. Its sales this past quarter grew 6.7 percent over the same quarter a year prior.
"Saks is well positioned as a high-end luxury fashion authority, but there is much room for improving the retail fundamentals," wrote analysts at Scotiabank recently.
At the division that houses Lord & Taylor, Home Outfitters and its namesake store, sales dropped 3.8 percent during the latest quarter.
This holiday season will be the last one in which shoppers can visit the holiday windows at the Lord & Taylor store on New York's Fifth Avenue. The store is one of a number that will close as Lord & Taylor looks to slim its footprint, hoping to redefine its place in retail. The department store has been struggling to find its place, as it sits in the awkward spot of being neither the high- nor low-end.
Shares of the Canadian company are down 34 percent since January.