Macy’s generates strongest same-store sales growth in 12 quarters
NEW YORK – With comp gains at each of Macy’s Inc.’s retail divisions, the company delivered a second quarter of better-than-expected results.
Total company sales – which include the impact of previous Macy’s store closures – declined 2.5% to $4.8 billion, with comparable sales up 0.8% on an owned basis and up 1.9% on an O+L+M (owned plus licensed plus Marketplace) basis.
Within the Macy’s department store division, women’s contemporary apparel and men’s tailored apparel outperformed. Macy’s also saw strong demand for textiles, mattresses and fine jewelry. The re-imagined Macy’s Backstage format and Marketplace were also strong contributors to growth, according to company chairman and CEO Tony Spring.
“We are calibrating our assortments on both a brand and category basis,” he said, noting that Macy’s is also making strides in product curation.
The company continues to segment out Macy’s performance
- Total Macy’s nameplate sales were down 3.8%, with comp up 0.4% on an owned basis and up 1.2% on an O+L+M basis.
- Macy’s go-forward business includes the roughly 350 Macy’s units that will still be standing after the company wraps up its downsizing plan as well as Marketplace. In that segment comp rose 1.1% on an owned basis and was up 2.2% on an O+L+M basis.
- At the 125 Reimagine locations comparable sales were up 1.1% on an owned basis and up 1.4% on an O+L basis.
Bloomingdale’s total sales rose 4.6%, with comp up 5.7% on an O+L+M basis.
“Our performance highlights the advantages of being a multi-brand, multi-category, omni-channel retailer. The substantive, enterprise-wide improvements across our business, with a strong focus on customer experience, give us further confidence that our Bold New Chapter initiatives can drive sustainable, long-term profitable growth,” said Spring.
The company raised its guidance for the full fiscal year.
It now expects full-year sales in the range of $21.15 billion to $21.45 billion compared to its previous range of $21.0 billion to $21.4 billion.
Macy’s slightly narrowed its same-store sales forecast. It now expects consolidated comp to decline 1.5% to 0.5%. Its earlier outlook called for a comp decline in the range of 2.0% to 0.5%.
Adjusted earnings for share are now expected to land between $1.70 to $2.05, up from its previous forecast of $1.60 to $2.00.
