The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
NEW YORK, United States — Macy's Inc., the largest U.S. department-store chain, posted second-quarter earnings that missed analysts' estimates as the retailer relied on discounts to clear seasonal inventory delayed at the West Coast Ports.
Profit in the three months through Aug. 1 was 64 cents a share, the Cincinnati-based company said in a statement on Wednesday. Analysts projected 76 cents, on average.
Chief Executive Officer Terry Lundgren is cutting costs and experimenting with low-priced outlets as mall traffic dwindles and shoppers focus on finding deals. The dollar’s strength has hurt sales to tourists, and delays at West Coast ports have caused a backlog of seasonal products, forcing Macy’s to cut prices to make way for new items.
Comparable-store sales on an owned plus licensed basis will be little changed this year, Macy’s said Wednesday. That’s down from the company’s previous projection for a gain of about 2 percent.
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Macy’s fell 4.3 percent to $64.60 at 8:02 a.m. in early trading in New York. The stock had gained 2.7 percent this year through the close of trading Tuesday.
By Lindsey Rupp. Editors: Kevin Orland, Paul Jarvis.
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