Yet despite these and other growth initiatives (like plans to increase its same-day delivery markets), the damage from the first half of 2015 is already done, and Macy’s is lowering its full-year comparable store sales forecast.
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Lundgren also noted that overall consumer demand was restrained in numerous categories of merchandise sold by Macy’s, while the strong U.S. dollar led to significantly lower global tourist spending.
The company said its results were impacted by the removal of a major promotional event and the delay of markdowns to clear out inventory that had been held up in West Coast ports. The average estimate of nine analysts surveyed by Zacks Investment Research was for earnings of 75 cents per share.
One of the highlights to look forward to in the third quarter is that Macy’s will begin e-commerce selling in China in late fall 2015 through a joint venture with Fung Retailing.
Macy’s said it expected same-store sales to remain flat in the year ending January 2016. The company earlier forecast a rise of about 2 percent in same-store sales and an increase of about 1 percent in total sales. Year-to-date it’s down just 1.1%. Three months later, the bad winter weather has gone away but the rest of these woes still remain: Wednesday morning, Macy’s reported second quarter earnings results that its own CEO called disappointing and attributed to the very factors that caused the company problems in Q1. Macy’s has inked a deal with Tishman Speyer for a real estate purchase and sale agreement that will enable a re-creation of Macy’s Brooklyn store.
Cincinnati-based Macy’s Inc.is launching a Chinese joint venture with Hong Kong-based…
Shares of Macy’s, which operates its namesake stores and the upscale Bloomingdale’s chain, rose about 1 percent in premarket trading, reversing course.
The company will own a 65 percent stake in the joint venture, Macy’s China Ltd, with Fung Retailing Ltd. Alibaba announced Tuesday that it’s expanding its brick-and-mortar presence and logistics capabilities in China with a $4.6 billion investment in Chinese electronics retailer Suning.
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Shares of Macy’s opened Wednesday at $66.55 but tumbled more than 5% shortly afterward.
