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 on Wednesday reported a surprise rise in quarterly same-store sales, topping estimates for the third straight quarter, boosted by strong performance across its businesses.
The company's stock fell nearly 5 percent in premarket trading. Its shares have surged 66 percent to $41.82 this year and have more than doubled since their November low of $17.40.
Sales at Macy's stores open more than 12 months, including sales in departments licensed to third parties, rose 0.50 percent, compared with the average analyst estimate of a 0.90 percent drop, according to Thomson Reuters I/B/E/S.
Department stores have been struggling with falling mall traffic and tough competition from off-price retailers and Amazon.com Inc. In response, Macy's has closed stores, tightly controlled inventory, built its Backstage discount business and monetised prime real estate properties.
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"Macy's, Bloomingdale's and Bluemercury all performed well. It is encouraging to see the continued strengthening of our brick & mortar business where we saw trend improvements across the portfolio," chief executive Jeff Gennette said in a statement.
Excluding one-time items, the company earned 70 cents per share, much higher than analysts' expectations of 51 cents.
Net income attributable to Macy's shareholders rose to $166 million, or 53 cents per share, in the second quarter ended August 4 from $111 million, or 36 cents per share, a year earlier.
Net sales fell 1.1 percent to $5.57 billion, but still topped estimates of $5.55 billion.
The company also raised its full-year profit and sales target.
Shares of rival department store operators J.C. Penney Co Inc, Nordstrom Inc and Kohl's Corp also fell after the report.
By Aishwarya Venugopal; Editor: Anil D'Silva.
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