You have reached your limit of free articles this month.

Enjoy unlimited access to SpringfieldNewsSun.com

Starting at just 99¢ for 8 weeks.

GREAT REASONS TO SUBSCRIBE TODAY!

  • IN-DEPTH REPORTING
  • INTERACTIVE STORYTELLING
  • NEW TOPICS & COVERAGE
  • ePAPER
X

You have read of premium articles.

Get unlimited access to all of our breaking news, in-depth coverage and interactive features. Starting at just 99c for 8 weeks.

X

Welcome to SpringfieldNewsSun.com

Your source for Clark and Champaign counties’ hometown news. All readers have free access to a limited number of stories every month.

If you are a News-Sun subscriber, please take a moment to login for unlimited access.

Macy’s sales slip, says shoppers wary to spend


NEW YORK (AP) — Macy’s Inc. reported a disappointing profit for its second quarter and cut its outlook for the year on Wednesday, with the department store operator blaming shoppers’ reluctance to spend for a slip in sales.

Its shares fell 3.4 percent to $46.85 in premarket trading. Over the past year, its stock is up almost 27 percent.

Macy’s, which operates its namesake stores and Bloomingdales, is seen as a barometer of spending among middle- to upper-income shoppers.

Like other retailers, the Cincinnati-based company is grappling with a yo-yo economic recovery that’s making people more careful about their purchases heading into the heart of the key back-to-school selling period.

“To see Macy’s miss by a wide margin is troublesome, speaking volumes about the health, or lack thereof, of middle America,” wrote Brian Sozzi, chief equities strategist for Belus Capital Advisors.

For the period ended Aug. 3, Macy’s says it earned $281 million, or 72 cents per share. That’s short of the 78 cents per share analysts expected. A year ago, the company earned $279 million, or 67 cents per share.

Revenue slipped to $6.07 billion, also short of the $6.26 billion analysts expected, according to FactSet.

Revenue at stores open a year, a key metric because it strips out the impact of newly opened and closed locations, slid 0.8 percent.

Macy’s now expects sales at stores open at least a year to climb between 2 percent and 2.9 percent, down from its previous guidance of a 3.5 percent increase.

While jobs are easier to get and the turnaround in the housing market is showing promise, the improvements haven’t been enough to get most Americans to spend more. Most are juggling tepid wage gains with higher costs of living.

On Wednesday, Macy’s nevertheless said it was encouraged by its early read on the back-to-school season heading into the third quarter. But other retailers such as teen clothing sellers American Eagle Outfitters Inc. and Aeropostale Inc. have cited lots of discounting and warned of a slow start to the period.

Macy’s also said that it has been marking down prices after a cool spring and that shoppers are responding positively.

Macy’s also lowered its earnings forecast to $3.80 to $3.90 per share, down from the previous outlook of $3.90 to $3.95 per share.

The disappointing results from Macy’s don’t bode well for J.C. Penney Co., which reports next week, Sozzi said.


Reader Comments ...


Next Up in Business

INSIDE LOOK: Nearly $1M home for sale near Piqua
INSIDE LOOK: Nearly $1M home for sale near Piqua

A custom-built home on U.S. 36 near Piqua is for sale for more nearly $1 million. The custom two-story home is located at 1538 E. U.S. 36 outside Piqua in Miami County and is listed for sale by Coldwell Banker at $949,900. The house has 8,500 square feet of living space, with five bedrooms, five full baths, 3 half baths, 3 fireplaces, study, media...
Nordstrom selling work jeans covered in fake mud for $425
Nordstrom selling work jeans covered in fake mud for $425

  After it was ridiculed for selling designer rocks at Christmas, Nordstrom may have topped itself with its latest offer. The department store is offering a pair of jean covered in fake mud for a whopping $425. The retailer described its new Barracuda Straight Leg Jeans on its website as "rugged Americana workwear that's seen some...
STORE CLOSINGS: Sears to close 50 auto centers
STORE CLOSINGS: Sears to close 50 auto centers

Sears Holdings is set to close 50 Auto Center locations, the company announced. Sears updated investors last week on its strategic restructuring program, stating the company aimed to save $1.25 billion through some store closures in 2017. The company already announced it would close 108 Kmart stores and 42 Sears locations. » RETAIL APOCALYPSE...
Two area health systems named Top 15 in nation
Two area health systems named Top 15 in nation

Kettering Health Network and Mercy Health have been named two of the Top 15 health systems in the nation by the international business research firm Truven Health Analytics. It’s the fifth appearance on the Top 15 list for the Dayton-based Kettering system, comprised of eight hospitals, including Kettering Medical Center, Fort Hamilton, Soin...
675 Ohioans complained about mortgage servicer sued by feds
675 Ohioans complained about mortgage servicer sued by feds

State and federal authorities have sued mortgage servicer Ocwen Financial Corp., saying the company botched the handling of millions of mortgage accounts, including 675 Ohio complaints. The Consumer Financial Protection Bureau said Thursday that the accounts Ocwen serviced were riddled with errors throughout the repayment process. It said the company...
More Stories