American fashion retailer Macy’s decision to close stores (after witnessing a tough time in the past) has not done any good to the company rather the sales slipped further in the second quarter.
Macy’s reports that during the quarter its sales dropped 5.4 per cent to reach US $ 5.552 billion against US $ 5.866 billion in the corresponding period of 2016. Comparable sales on an owned-basis also went down (2.8 per cent) for the retailer.
The fashion giant’s operating income was valued at US $ 254 million or 4.6 per cent of sales for the second quarter of 2017 compared to US $ 117 million or 2.0 per cent of sales for the second quarter of 2016.
Additionally, net sales for the first six months of the year plunged 6.4 per cent to reach US $ 10.890 billion from US $ 11.637 billion in the first half of 2016. Comparable sales on an owned-basis were down 4.0 per cent and 3.6 per cent on an owned plus licensed basis.
“We are working with a mindset of continuous improvement and will adapt our business in order to reach our goal of stabilizing the brick-and-mortar business while investing for accelerated growth in digital and mobile,” said Jeff Gennette, President and Chief Executive Officer, Macy’s in the press release issued.
Macy’s has also reaffirmed its sales and earnings guidance for the full year 2017. The company expects comparable sales for the full year to further drop by 2.2-3.3 per cent.
