US department store retailer Macy’s is to start selling online in China this year through a joint venture with Hong Kong-based Fung Retailing Ltd.
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Chris Beauchamp, analyst at London spreadbetters IG, said: “China appears to have discovered a love for active FX intervention”. J.C. Penney, Kohl’s and Nordstrom will report their second-quarter results later this week. It bought Blue Mercury, a Washington, D.C. cosmetics and skincare retailer, earlier this year. A West Coast port labor dispute added to those problems.
Macy’s, which has headquarters in Cincinnati and New York, has been a standout in retail throughout the economic recovery. Tmall Global will be the first and only third-party e-commerce platform in China providing apparel, fashion accessories and home products directly from Macy’s to consumers across China.
“Moreover, throughout the entire first one half of the entire year of, overall potential buyer insist has actually been treated in a great number of kinds of wares our team advertise, plus the intense United states.S. money has seeing substantially lower internationaly visitor spending”, Mr. Lundgren said. Under the agreement, Macy’s China Limited will launch an exclusive online flagship store on Tmall Global providing a wide selection of authentic, high-quality Macy’s merchandise to shoppers in China.
When asked if he is anxious about the Chinese government’s influence in the markets, Lundgren said that he has an advantage because he’s starting fresh and is new in the Chinese market.
“By making Macy’s accessible in China, we have an opportunity to deepen our relationship with domestic and worldwide customers and to grow sales”.
Still, the latest numbers illustrate the challenges before Macy’s.
The Street is now looking for earnings of $4.63 per share for the year, on net sales of $28.26 billion. Five analysts surveyed by Zacks expected $6.24 billion.
Macy’s same-store sales, including licensed departments, fell 1.5 percent in the second quarter.
Separately, the company lowered its full-year sales guidance after reporting disappointing second-quarter results.
All together Macy’s makes $270 million that it will put toward the store renovation.
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Macy’s shares were trading at $66.35 before the bell.
