Hudson’s Bay Co. (HBC.TO) reported a fourth quarter loss of 83 cents per share, due largely to an impairment charge related to weaker-than-expected sales at its Saks OFF Fifth and Gilt stores.

The department store reported a net loss of $152 million for the quarter ending Jan. 28. That compares to a net income of $370 million or $1.88 per share during the same period last year.

The company reported a non-cash goodwill impairment charge of $116 million related to Saks OFF Fifth and Gilt stores. The company noted that its prior year’s quarter was boosted by a $33 million gain from the sale of investments that contributed to the quarter.

HBC CEO Jerry Storch said the company is confident with its current strategy. “We are cutting expenses, rationalizing and reallocating our capital spending, strengthening our balance sheet, and taking other necessary actions,” he said in a release.

The company’s retail sales increased 2.5 per cent to $4.6 billion and digital sales were up 13.3 per cent.

HBC has been the subject of much market speculation recently. The company has reportedly been in talks to buy U.S. retailer Neiman Marcus as well as Macy’s.