TORONTO – The company that owns the Bay, Lord & Taylor and Saks Fifth Avenue says sales across most of its retail business have fallen below expectations and it’s revising estimates for the 2016 financial year.

Hudson’s Bay Co. (TSX:HBC) says sales at stores that have been open for at least a year in its third quarter fell by 3.6 per cent, after adjusting for currency fluctuation, and by four per cent when including the impact of foreign exchange.

The retail chain says its previous outlook assumed an improvement on comparable sales during the second half of its 2016 financial year but, given that hasn’t happened, HBC is lowering its key financial estimates.

HBC trimmed its estimate for 2016 annual sales to between $14.5 billion and $14.9 billion from its previous outlook issued in September of $14.9 billion to $15.9 billion.

CEO Jerry Storch says the company will continue to invest in its operations, such as its recent $60 million in upgrades at its Toronto distribution centre to speed up delivery of products.

Its full third-quarter report will be released Dec. 5.