04/05/2016 01:31 EDT | Updated 04/06/2017 05:12 EDT

Hudson's Bay Company Plans Aggressive Expansion Into Germany

Company plans to open 40 Saks Off 5th stores in Germany.

Chris McKay/Getty Images
CHICAGO, IL - DECEMBER 08: Shoppers cross the street between Saks Fifth Avenue and Tiffany & Co. on December 08, 2014 in Chicago, Illinois. (Photo by Chris McKay/Getty Images)

TORONTO — Hudson's Bay Co. has major plans for expansion in Europe.

The owner of Saks, Lord & Taylor and Hudson's Bay department stores says it will open 40 locations of its discount chain Saks Off 5th in Germany.

The first stores will be open in 2017 using real estate the company already owns.

The plan is part of HBC's nearly $1.5 billion (one billion euro) investment in its European properties over the next seven years.

HBC bought Galeria Kaufhof, the largest department store chain in Germany and Belgium, for $4.2 billion (2.8 billion euros) last year.

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The company reported after markets closed Monday that fourth-quarter revenue soared 70.4 per cent to $4.486 billion from $2.632 billion in the same year-earlier period, primarily as a result of the addition of HBC Europe following the close of the Galeria acquisition.

Net earnings rose to $370 million, or $1.88 per diluted share, for the three months ended Jan. 30.

That was up from $115 million, or 62 cents per diluted share, in the comparable year-earlier period as the company realized $516 million on the sale of investments in its real estate joint venture.

For the full year, net earnings totalled $387 million, up from $233 million in fiscal 2014. Full-year consolidated retail sales were $11.162 billion, up 36 per cent from $8.169 billion, also primarily attributable to the addition of HBC Europe.