People walk past Macy's flagship store in Herald Square in New York City.
Getty Images
Macy's holiday sales dropped, the company announced Wednesday, but not as much as analysts had anticipated, sending the department store chain's shares higher.
It said same-store sales on an owned plus licensed basis were down 0.6% during the months of November and December.
For the fourth quarter, which includes the holiday season, analysts had been calling for a 1.75% decline in same-store sales, according to a poll by Refinitiv.
Macy's shares climbed more than 5% in premarket trading on the news.
"Macy's performance during the holiday season reflected a strong trend improvement from the third quarter," CEO Jeff Gennette said in a statement. "Customers responded to our gifting assortment and marketing strategy, particularly in the 10 days before Christmas."
It was expected that America's department store chains suffered through another disappointing holiday season.
The category of retailers that includes J.C. Penney, Nordstrom, and Macy's saw overall sales decline 1.8% from Nov. 1 through Dec. 24, according to a study by Mastercard Spending Pulse that tracked retail spending trends across all payment types, including cash and check.
More shoppers are anticipated to have turned to retailers like Target and Walmart — which aren't at traditional malls — for apparel, electronics, and other gifts. Many likely rung up purchases on Amazon as well. The e-commerce giant has already claimed 2019 was a record holiday.
When Macy's reported quarterly earnings at the end of November, it trimmed its full-year sales and profit outlook. The company blamed its lackluster results, in part, on "weaker than anticipated performance in lower tier malls." But CEO Gennette had said he had "confidence" in Macy's holiday plans.
There were six fewer days between Thanksgiving Day and Christmas Day in 2019 compared with a year earlier, making for the shortest holiday season calendar possible. Analysts said the short shopping season put more pressure on companies to lure shoppers in with deals. Some retailers likely deployed steeper and more frequent discounting, which in turn puts pressure on profit margins.
As of Tuesday's market close, Macy's shares were down a little more than 40% over the past 12 months. The department store chain has a market cap of roughly $5.5 billion.
Retail - Latest - Google News
January 08, 2020 at 07:33PM
https://ift.tt/2N3Ch15
Macy's holiday same-store sales fall 0.6%. Smaller-than-expected decline sends shares higher - CNBC
Retail - Latest - Google News
https://ift.tt/2JDvGsM
Shoes Man Tutorial
Pos News Update
Meme Update
Korean Entertainment News
Japan News Update
No comments:
Post a Comment