Macy’s reported its third quarter earnings, and company officials said the retailer is looking to gain “momentum” before 2018.
Macy’s has locations at the Dayton Mall and the Mall at Fairfield Commons. Here’s what we learned about Macy’s future:
1. MIXED BAG “Macy’s has presented a rather mixed bag of results, with gains on the bottom line overshadowed by the continuing slide in sales,” said GlobalData Retail Managing Director Neil Saunders in a note to clients. “The company needs to move further, faster and in a more coordinated way if it is to transform its fortunes.”
2. SALES DECLINED Sales in the third quarter of 2017 totaled $5.3 billion, a decrease of 6.1 percent, compared with sales of $5.6 billion in the third quarter of 2016. The year-over-year decline in total sales reflects, in part, the closure of stores previously announced by the company.
3. OPERATING INCOME Macy’s operating income for the third quarter of 2017 totaled $121 million, or 2.3 percent of sales, compared to $107 million, or 1.9 percent of sales, for the third quarter of 2016. Operating income for the third quarter of 2017 totaled $176 million, or 3.3 percent of sales, excluding restructuring and other costs of $33 million and non-cash retirement plan settlement charges of $22 million.
4. DISCOUNT STORES Macy’s is committed to its Backstage locations, a discount retail concept. “Macy’s remains intensely focused on executing all aspects of our North Star Strategy. We expect continued improvement in our trends in the fourth quarter, including a solid lift from loyalty and digital, and intend to head into 2018 with momentum,” Jeff Gennette, CEO of Macy’s.
5. HOLIDAY SHOPPING “We are excited about our plans for holiday, which is when Macy’s truly shines as a gifting destination. The loyalty program, special in-store experiences and a strong mobile and online presence will help drive holiday sales. We are bringing our fashion authority to bear on holiday trends and have a strong product assortment,” said Jeff Gennette, CEO of Macy’s.
FIVE FAST BUSINESS READS