Macy’s slide continues as retailer preps new marketing
Women’s shoes, jewelry and discounted apparel helped ease the pace of Macy’s slide during the second quarter, but sales were still down as the company seeks stability amid intense competition.
The iconic retailer — whose struggles have been one of the starkest examples of how tradi- tional stores are teetering as consumers shop online — said Thursday it hopes a renewed marketing strategy that fully launches in September will help it thrive during back-to-school shopping and the crucial holiday shopping season.
Net income rose sharply from
$11 million, or 3 cents in diluted earnings per share a year ago, to
$116 million, or 38 cents in per share in the second quarter. But that fell short of a projected
$156 million from analysts. Macy’s shares fell 10.25% Thursday to close at $20.67.
Some of the chain’s recent initiatives are showing promise. A focus on shoes, furniture and fine jewelry, the funneling of traffic to stores that remain open in the wake of the closure of dozens of locations and the incorporation off the off-price “Back Stage” shops inside 37 Macy’s stores led to a roughly $60 million boost in sales, Macy’s said.
The retailer is continuing to blend its in-store and mobile experience. For instance, a shopper browsing at an actual store will be able to scan a piece of clothing or appliance with Macy’s mobile app, find out the price and availability, make the purchase through the app and have the item delivered to their homes.
Macy’s CEO Jeff Gennette said the company’s plan to launch a new loyalty program before the holiday season could also help.
Macy’s said Thursday that its sales in the quarter that ended July 29 fell 5.4% to $5.55 billion, beating S&P Global Market Intelligence expectations of $5.52 billion. The retailer’s 48 cents in earnings per share, when not counting certain items, also beat the 47 cents estimate from S&P.
The retailer previously said it would close 100 stores to increase cash flow and streamline operations.