Macy’s Q3 Earnings Up, Sales Down

As Macy’s puts the final touches on preparations for the holiday shopping season, the department store retailer reported mixed results for the third quarter.

Total sales for the quarter ended Nov. 1 were $6.195 billon, down from sales of $6.276 billion for the comparable quarter a year earlier. Comparable store sales were down 0.7% in the quarter. However, net income was $217 million, up from net income of $177 million in the third quarter of 2013.

“We are very pleased with our third quarter earnings, even though the sales performance fell short of our expectations,” said Terry Lundgren, chairman and CEO, Macy’s, Inc. “We knew we were up against very strong third quarter sales growth for our company last year, and thus we had anticipated that our year-over-year comparison would be lower in the third quarter than in the fourth quarter. Even so, sales did not live up to our expectations in the quarter,”

Lundgren said Macy’s is “optimistic” for the fourth quarter, citing a merchandising assortment for the holidays rooted in “great style, exclusive offerings and outstanding value.” He also feels the company’s omnichannel strategy that includes a “Buy Online, Pickup in Store,” Same Day Delivery tests in select Macy’s and Bloomingdale’s and improved functionality and usability in upgraded mobile apps will be key in helping the company hit fourth quarter goals.

During the third quarter the company opened three new Macy’s stores in Sarasota, FL; Las Vegas, NV; and The Bronx, NY; and closed Macy’s stores in Bradenton, FL; and York, PA. In Torrance, CA, three Macy’s stores were consolidated into two as part of a mall redevelopment. A new Bloomingdale’s replacement store opened in the third quarter in Palo Alto, CA.