The operational efficiency of the company is in a strong position after their acquisition of Saks Fifth Avenue and increased revenues over the last fiscal year with a 1.9% increase in gross margin from the last year. HBC ended the year with a 55.8% increase of working capital from 2013, caused primarily due to a $299 million increase in inventory, which was necessary to support the increased retail sales. HBC’s competitor, Nordstrom, has a working capital of $2,424 million due to having a large accounts receivable asset of $2,306 million compared to the accounts receivables account of HBC, which is only $212 million. In 2014, the company saw a 97.11% increase in the operating profit, which is an increase from the 2220% decline that Hudson
