Hudson's Bay Co (HBC.TO), owner of U.S. luxury retail chain Saks Fifth Avenue, cut its revenue forecast for the full year, saying comparable sales did not improve in the second half as expected.

The oldest continuously operating company in North America said on Thursday it expected sales of US$14.5 billion to US$14.9 billion, down from the US$14.9 billion to US$15.9 billion it estimated in September.

The latest forecast assumes flat to low-single digit overall comparable sales growth, the company said.

"The apparel retail environment continued to be challenging through the third quarter," Chief Executive Jerry Storch said.

The company said, on a constant currency basis, consolidated comparable sales fell 3.6 per cent in the third quarter ended Oct. 29, compared with a 2 per cent rise a year earlier.

However, Storch said he remained optimistic about the upcoming extended holiday season following last year's tough fourth quarter, which was impacted by warm weather.

The company, which has been expanding in Europe, also lowered its capital expenditure forecast for the year to US$700 million to US$750 million, from US$750 million to US$850 million.

Hudson's Bay is scheduled to announce third-quarter results on Dec. 5.