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Macy’s Reports Declines For 3rd Quarter
Macy’s Inc. reported a same-store sales decline for its third quarter and lowered its annual sales and EPS guidance for its 2019 fiscal year. The results were released on Nov. 21.
The department-store giant claimed net sales of $5.1 billion for the third quarter. Comparable sales declined 3.5 percent. The third-quarter results marked the first decline in seven quarters of consecutive sales growth, said Jeff Gennette, Macy’s chairman and chief executive officer.
“Our third-quarter sales were impacted by the late arrival of cold weather, continued soft international tourism and weaker than anticipated performance in lower-tier malls,” he said.
The retailer also suffered a data breach, reportedly between Oct. 7 and 15, according to media reports. In further comments, Gennette referred to the company’s digital business.
“We also experienced a temporary impact in our e-commerce business due in part to work on the site in preparation for the fourth quarter,” he explained. “The team has completed that work; the site is upgraded and our customers can expect an improved experience this holiday season. Based primarily on the impact of our third-quarter sales trend, we are updating our annual guidance.”
Same-store sales will range from a decline of 1.5 percent to 1 percent. The previous guidance was flat to 1 percent.
