Macy’s (NYSE:M) third quarter report released this Wednesday showed that it had a disappointing quarter which forced Macy’s to change its viewpoint on the earnings and sales. The corporation posted a profit of $217 million which roughly adds up to about 61 cents per share. They had lowered their prices this year so that more profit could be procured then the $177 million or $47 cents a share which were the values last year.
There was a fall of 1.3% in revenue this quarter, to $6.2 billion contrasted with the previous year and comparable store sales fell 0.7% including divisions authorized to intermediary parties. Wall Street was expecting an income of 50 cents a share on earnings of $6.34 billion from Macy’s (NYSE:M). Macy’s (NYSE:M) is currently expecting a profit between $4.25 and $4.35 per share for this year down from $4.40 to $4.50 a share.
The corporation also brought down its comparable store deals development forecast from 1.5% to 2% down from 0.7% to 1%. Terry Lundgren, the CEO of Macy’s (NYSE:M) said that they knew that they were up against an exceptionally solid third quarter sales for Macy’s (NYSE:M) last year and accordingly they knew that the year on year correlation would be brought down but even then, the sales didn’t satisfy their expectations this quarter.
Lundgren has already informed in September at Goldman Sach’s Annual Retail Conference that the consumer confidence was lower than what he had anticipated this year. He also said that he doesn’t expect anything to improve during the holiday season either. Moreover, he said that the company’s performance in the second half this year is going be the same as it was in the past few years and that they must do whatever is in their capacity to get hold of a fragment of the overall industry and get the most out of the consumers who shop at their stores.
Karen Houget who is the CFO of Macy’s (NYSE:M) partly reprimanded the hot weather for the company’s low sales. In any case, she said, Macy’s (NYSE:M) would push its accelerator to the floor this Holiday season, and conveyed her optimism about the corporation’s method to get consumers in their stores. They have decided to offer in-store pickup so that more consumers will come to Bloomingdale’s and Macy’s (NYSE:M) locations in the holiday season.
Macy’s (NYSE:M) formerly reported it will open stores at 6 p.m. on Thanksgiving, two hours sooner than last year. It expects same-store deals in the fourth and final quarter to expand somewhere around 2% and 3%, Chief Financial Officer Karen Hoguet said in a call with investigators. Macy’s (NYSE:M) and other such retailers have been struggling with less sales as customers now buy most of their utilities online since the recession.
Even with all this happening, Macy’s (NYSE:M) has been successfully dealing with these hard conditions better than other retailers. Although the sales have been pretty sluggish this year, it has reported increases in revenue this year.