Skip to main content
BoF Logo

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.

Macy’s Climbs After Bouncing Back Strong From Tough Holiday

The department store surged after reporting sales improvements, saying that its strategic turnaround plan is on track to deliver 'long-term profit growth.'
Macy's department store | Source: Shutterstock
By
  • Bloomberg

CINCINNATI, United States — Macy's surged after reporting improvements to its sales, including at its brick-and-mortar locations. The company said its strategic turnaround plan is on track to deliver "long-term profit growth."

Same-store sales for owned as well as licensed stores gained 0.7 percent in the company’s latest quarter, the sixth consecutive gain. That’s better than analysts’ projections, according to Consensus Metrix. Macy’s also said it had another quarter of double-digit online sales growth.

Macy’s current mission is to cut costs, and Chief Executive Officer Jeff Gennette says the plan is “making progress.’’ Shareholders like cost cutting, but some analysts had been wondering whether it would also be making the big changes needed to fuel top-line growth — this set of results suggests it’s doing just that.

The chain has been experimenting with different ways to use its real estate, including its Story pop-up concept to attract younger shoppers and its Backstage discount concept. Gennette said those kinds of new ideas helped support growth in the quarter, leading to a sequential improvement in brick and mortar sales.

ADVERTISEMENT

In terms of thinking outside the box, Macy’s has also held preliminary discussions with New York City officials about building a skyscraper on top of its flagship store in Manhattan’s Herald Square. It may give more details on its call later this morning.

The shares jumped as much as 8.9 percent in premarket trading before paring gains. They had dropped 27 percent this year through Tuesday’s close, in contrast with the 13 percent gain in the S&P 500 Index.

By Jordyn Holman; editors: Anne Riley Moffat, Jonathan Roeder.

In This Article
Organisations

© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions

More from News & Analysis
Fashion News, Analysis and Business Intelligence from the leading digital authority on the global fashion industry.
view more

Subscribe to the BoF Daily Digest

The essential daily round-up of fashion news, analysis, and breaking news alerts.

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.
CONNECT WITH US ON
The Business of Beauty Global Awards - Deadline 30 April 2024
© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions, Privacy Policy, Cookie Policy and Accessibility Statement.
The Business of Beauty Global Awards - Deadline 30 April 2024