Wednesday, August 5th16.8°C
27162

Macy's trims sales outlook as it reports 4 pct increase in 2Q profit

NEW YORK, N.Y. - Macy's Inc. on Wednesday reported a 4 per cent profit increase in its fiscal second quarter as business rebounded from slow sales earlier in the year.

But the department store chain cut its full-year outlook for a key sales measure, saying it couldn't make up the sales shortfall from the first quarter, when winter storms kept shoppers at home.

Shares of Macy's tumbled nearly 5 per cent, or $2.83, to $56.93 in trading Wednesday.

Macy's, a standout among its peers throughout the economic recovery, is the first of the major retailers to report second-quarter results, which should provide insight into shoppers' mindset heading into the critical final months of the year. Wal-Mart Stores Inc., Nordstrom Inc., Kohl's Inc. and J.C. Penney Co. are set to report their results Thursday.

Like many retailers catering to the middle class, Macy's is facing economic challenges. While the job market is improving and the housing market is rebounding, the gains are not strong enough to sustain big shopping sprees.

Macy's said Wednesday that it's been pleased with the start to the back-to-school season, which typically begins mid-July and ends in mid-September. But Macy's said it needs to continue to discount to bring shoppers in.

"Our outlook for the fall season reflects our confident optimism tempered with the reality that many customers are feeling the impact of an economic environment that, at best, is improving very gradually," Chief Financial Officer Karen Hoguet told investors during a conference call Wednesday.

Still, Macy's, which also operates the upscale chain Bloomingdale's, has benefited from its focus on tailoring merchandise to local markets. It's also aiming to create a more seamless experience for shoppers who are going back and forth from stores to websites.

Macy's, which has corporate offices in Cincinnati and New York, said it just finished rolling out a program that allows shoppers to order online and then pick up items at stores. The company also said that its sharpened marketing and merchandising aimed at 13- to 30-year-old customers has re-energized the back-to-school business.

Macy's said its second-quarter net income increased to $292 million, or 80 cents per share, from $281 million, or 72 cents per share, in the same quarter a year earlier. The average estimate of analysts surveyed by Zacks Investment Research was for profit of 86 cents per share.

The company said revenue rose 3.3 per cent to $6.27 billion from $6.07 billion in the same quarter a year earlier, but missed Wall Street forecasts. Analysts expected $6.29 billion, according to Zacks.

Macy's said that sales at stores open at least a year rose 4 per cent. The figure includes business from departments licensed to third parties. But Macy's said that it now expects that measure to increase by 2 per cent to 2.5 per cent for the year, down from its previous projection of 2.5 per cent to 3 per cent.

____________

Follow Anne D'Innocenzio at http://www.Twitter.com/adinnocenzio

The Canadian Press


Read more Business News




Recent Trending




Today's Market
S&P TSX14491.05+22.32
S&P CDNX589.88-4.43
DJIA17550.69-47.51
Nasdaq5105.55-9.84
S&P 5002093.32-4.72
CDN Dollar0.7582-0.0001
Gold1084.10-6.60
Oil46.57+0.44
Lumber258.60-0.10
Natural Gas2.841+0.001

 
Okanagan Companies
Pacific Safety0.17-0.01
Knighthawk0.010.00
QHR Technologies Inc1.40-0.02
Cantex0.04+0.00
Anavex Life Sciences1.46+0.33
Metalex Ventures0.05+0.00
Russel Metals19.39-0.01
Copper Mountain Mining0.80+0.01
Colorado Resources0.085+0.020
ReliaBrand Inc0.0049+0.0004
Sunrise Resources Ltd0.03+0.00
Mission Ready Services0.08-0.02
Decisive Dividend Corp2.55+0.05

 



24947

FEATURED Property
22329173792 Brown Road
$479,900
more details
image2image2image2
Click here to feature your property
Please wait... loading


Mortgage policy changes?

There are rumours circulating again that the federal government may move to tighten mortgage insurance criteria. This is prompted by a recent article in the Financial Post. The housing market while b...


Chasing ducks

Photo: Thinkstock.comWhen businessmen tell me that being low priced is the only way to stay in business, I am skeptical. Price is the simplest way for a consumer to compare and is overused as the basi...


Taking care of business

Photo: Thinkstock.comRetirement as a goal has changed a lot over the years. There was a time, it was the only goal. You’d punch the clock and count the years until you could stop punching that t...

_



26370

26376


Member of BC Press Council


26916