Americans are feeling good about shopping, and Macy's survival might depend on it

Business Insider | 5/16/2018 | Mary Hanbury
ditranian (Posted by) Level 3
Click For Photo:

Macy's share price soared after the company reported better-than-expected earnings on Wednesday.

Same-store sales rose 4.2% during the first quarter of 2018.

Analysts - Success - Macy - Strategies - Improvements

But analysts are skeptical as to how much this success can be contributed to Macy's new strategies and improvements rather than an industry-wide improvement in consumer spending.

Macy's stock price surged Wednesday on news of its strong quarterly results.

Spirits - Karen - Hoguet - Macy - CFO

"Spirits are up," Karen Hoguet, Macy's longtime CFO, who announced her retirement last month, said in a call with investors shortly after the results were reported.

"It was just a terrific first quarter all around," she said.

Sales - % - Macy - Inc— - Bluemercury

Same-store sales rose 4.2% at Macy's Inc— which also owns Bluemercury and Bloomingdale's — beating Wall Street's 1.4% average estimate and marking its second consecutive quarter of positive same-store sales growth.

Macy's CEO Jeff Gennette said during the call that its strong results were attributed to having a healthier inventory system and avoiding heavy discounts. He also spoke of having a stronger fashion assortment and improving the mobile experience.

Company - Improvements - Tourism - Spending - Consumer

Alongside this, the company also benefited from significant improvements in tourism spending and continued healthy consumer spending, he said.

This was a sticking point for several analysts on the call, but Gennette was quick to talk around any questions that asked him to go into further detail about how much of the store's success during the quarter could be attributed to Macy's own initiatives versus external factors.

Spending - Tide

spending. This rising tide has floated...
(Excerpt) Read more at: Business Insider
Wake Up To Breaking News!
Sign In or Register to comment.

Welcome to Long Room!

Where The World Finds Its News!