Macy's momentum may be starting to slow

Macy's same store sales weren't good enough to ...

Posted: Aug 16, 2018 3:45 AM
Updated: Aug 16, 2018 3:45 AM

Macy's same store sales weren't good enough to keep its momentum going.

The department store has been one of the hottest stocks on Wall Street lately. Its shares have more than doubled in the past 12 months.

But the stock deflated like a balloon at the end of the Macy's Thanksgiving parade and plummeted nearly 13% in late morning trading after the company reported same store sales that grew less than 2%.

Other retailer stocks, like JCPenney, Nordstrom, and Kohl's, all fell sharply on Wednesday.

"We are still of the view that Macy's is a long way from being back to full health. The sales numbers are strengthening, but they are doing so off the back of a very strong consumer economy, and it remains the case that Macy's growth is below that of the retail market," said Neil Saunders, managing director of GlobalData Retail, in a report.

It's true that consumers are spending.

On Wednesday, the government reported a 5.1% annual increase in retail sales figures for July -- excluding gasoline sales.

That report showed department store sales up just 0.3% from a year ago.

Joseph Brusuelas, chief economist with RSM US, wrote in a report that the retail sales figures showed that the US economy "is firing on all cylinders."

Home Depot and Coach-owner Tapestry also posted strong earnings.

Despite its flat same store sales, there is good news for Macy's. It reported earnings and revenue that topped forecasts and raised its outlook.

Macy's has staged a big comeback under CEO Jeff Gennette. It's closed some stores, managed a leaner inventory and increased its focus on digital commerce.

That's helped Macy's as it takes on Amazon and Walmart.

Walmart will report its latest results Thursday.

Gennette said in the company's earnings release that all of Macy's major brands -- including Bloomingdale's and makeup chain Bluemercury -- performed well.

"The combination of healthy stores, robust e-commerce and a great mobile experience is Macy's recipe for success," Gennette said.

"We also continue to be disciplined with inventory management, which allows us to give our customers more fashion and freshness," he added.

That's given profits a boost. Earnings were up more than 50% in the second quarter.

Minnesota Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 37210

Reported Deaths: 1495
CountyConfirmedDeaths
Hennepin12048782
Ramsey4777222
Stearns231219
Dakota224890
Anoka2155107
Nobles16616
Olmsted107615
Washington104840
Mower9322
Rice8277
Scott6844
Clay58037
Kandiyohi5661
Wright4535
Blue Earth4422
Todd4002
Carver3611
Lyon3052
Sherburne3035
Freeborn2890
Steele2231
Watonwan2150
Benton2123
St. Louis17415
Martin1615
Nicollet15512
Cottonwood1340
Goodhue1278
Winona12015
Crow Wing10412
Pine1030
Chisago971
Otter Tail921
Le Sueur911
McLeod850
Carlton830
Dodge830
Unassigned8237
Polk812
Chippewa761
Isanti650
Itasca6412
Waseca620
Douglas610
Meeker591
Morrison591
Becker550
Jackson550
Faribault540
Murray540
Sibley532
Pennington510
Mille Lacs342
Brown312
Pipestone311
Wabasha310
Beltrami290
Rock290
Yellow Medicine290
Renville282
Fillmore270
Houston250
Swift211
Norman200
Wilkin203
Redwood170
Wadena150
Aitkin140
Big Stone140
Cass142
Kanabec141
Koochiching141
Marshall120
Grant100
Lincoln100
Pope100
Roseau100
Clearwater70
Mahnomen71
Lake60
Hubbard50
Traverse50
Lac qui Parle40
Stevens40
Red Lake30
Kittson20
Cook10
Lake of the Woods00

Iowa Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 30173

Reported Deaths: 718
CountyConfirmedDeaths
Polk6275178
Woodbury320144
Black Hawk218058
Buena Vista170511
Linn123882
Johnson12318
Dallas122329
Marshall103519
Story7463
Pottawattamie71911
Scott70410
Wapello70230
Crawford6752
Muscatine62444
Dubuque60922
Sioux4610
Tama45829
Wright3771
Louisa36013
Jasper32117
Plymouth3134
Dickinson2592
Warren2581
Washington2349
Hamilton1871
Webster1702
Boone1421
Cerro Gordo1381
Clarke1272
Clay1270
Allamakee1264
Mahaska11517
Shelby1110
Clinton1041
Poweshiek1048
Pocahontas931
Carroll911
Bremer906
Des Moines862
Henry853
Franklin840
Cedar801
Taylor790
Emmet780
Cherokee751
Monona740
Floyd682
Marion680
Hardin650
Guthrie644
Sac630
Benton621
Jefferson580
Osceola580
Jones560
Harrison530
Humboldt531
Butler522
Buchanan511
Iowa510
Lee502
Monroe506
Hancock490
Calhoun482
Delaware481
Lyon400
Madison402
Clayton393
Davis391
Mills360
Palo Alto360
Winneshiek360
Grundy350
Fayette340
Mitchell340
Kossuth330
Lucas304
Greene280
Howard280
Chickasaw270
Jackson270
Union270
Winnebago270
Ida230
Cass210
Appanoose203
Keokuk201
Page200
Van Buren190
Audubon161
Adair150
Ringgold150
Worth150
Decatur110
Montgomery102
Wayne90
Adams80
Fremont70
Unassigned70
Rochester
Clear
83° wxIcon
Hi: 88° Lo: 67°
Feels Like: 85°
Mason City
Clear
84° wxIcon
Hi: 88° Lo: 66°
Feels Like: 88°
Albert Lea
Clear
81° wxIcon
Hi: 87° Lo: 68°
Feels Like: 84°
Austin
Clear
82° wxIcon
Hi: 89° Lo: 68°
Feels Like: 87°
Charles City
Clear
84° wxIcon
Hi: 88° Lo: 67°
Feels Like: 88°
HOT AND HUMID
KIMT Radar
KIMT Eye in the sky

Latest Video

Image

Pillars of the City Unveiled

Image

A hot day for a bike ride on the Douglas Trail

Image

Sen.Ernst tours homeless shelters, talks challenges

Image

Mask up Roachester Public Service announcement

Image

Staying hydrated over the holidays

Image

Coronavirus impact on holiday travel

Image

Enjoying fireworks social distanced

Image

Family Conflict During The Holidays

Image

Extra Drunk Driving Patrol

Image

Splash Pad Opens In Clear Lake

Community Events