Clothing retailer Macy’s has posted gross margin of 38.9 per cent in its second quarter.
Now that’s a fall from 40.6 per cent seen in the same period in the year-ago period.
The margin fall was attributed to year-over-year (Y-o-Y) rise in permanent markdowns within the Macy’s brand, largely driven by pandemic-related categories, seasonal goods and private brand merchandise.
The Q2 comparable sales fell by 1.5 per cent on an owned basis, while the same slumped by 1.6 per cent on an owned-plus-licensed basis. Compared to the second quarter of 2019, both rose by 4.3 per cent and 4.4 per cent, respectively.
Digital sales too dropped by 5 per cent Y-o-Y, while increasing by a good 37 per cent versus Q2 of 2019.
The retailer also cut it full-year forecast, anticipating deteriorating consumer spending on discretionary items like apparel that will force the department store chain to use heavy markdowns to move items off shelves.
Macy’s is known for apparels, footwear, fashion accessories and bedding, amongst others, and earned annual revenue of US $ 24.8 billion as of 2017.
