TORONTO  - Canadian department store operator Hudson's Bay Co's (HBC.TO) said on Wednesday it was aggressively working on fundamental changes in the business to improve performance and further cut costs.

Executives also reiterated to investors in a conference call that acquisitions remained a part of its corporate strategy, but would not comment on reports the company was in exploratory talks to acquire debt-laden luxury retailer Neiman Marcus Group, following a failed effort earlier in the year to bid for Macy's Inc (M.N).

"We look to do deals that are accretive for our shareholders," said Chairman Richard Baker from the Netherlands, where the company is planning to open more than a dozen Hudson's Bay and Saks OFF 5th stores.

"In no way would we do an acquisition that affected our debt ratios and impacted our existing business in a material way, but we do view ourselves as a global consolidator."

The stock, which had fallen more than 10 per cent this week ahead of results, rose 6.5 per cent to $10.333 late morning on Wednesday.

The owner of Saks Fifth Avenue and Lord & Taylor reported a fourth quarter loss after markets closed on Tuesday. Weak sales, particularly at its Saks OFF 5TH outlet chain and its Gilt online shopping website, forced the retailer to write down $116 million.

Executives plan to have Off 5TH inventory on Gilt.com by the third quarter, automate some processes, allow in-store pickup and work toward a single website platform for its stores.

Earlier this year, the company said it was undergoing an operations review and said it was expecting initial annualized savings of $75 million. Executives told analysts that was a "first step" with more to come.

"It is a major league, full-time effort in our company right now," said Baker. "We're not just looking at a little tinkering with the business model. We are looking on major reinvention and change in the business."

Founded in 1670, Hudson's Bay began primarily as a fur trading business. It once owned more than 40 percent of what is now Canada, and a significant portion of Minnesota and North Dakota. It was acquired in 2008 by mall developer NRDC Equity Partners, headed by Baker, and went public in 2012.

Hudson's Bay's results mirror a wider trend in retail, especially department stores in the United States and Europe, which has been hurt by changing consumer trends and fierce competition.