Macy’s misses on earnings, cuts same-store sales guidance

New York – Although Macy’s Inc. reported a 4% increase in net income to $292 million in the second quarter of fiscal 2014, from $281 million in the same period a year earlier, the company still missed Wall Street expectations. Leftover merchandise from a sluggish first quarter helped keep Macy’s profit growth down.

Net sales also missed Wall Street estimates, rising 3.3% to $6.27 billion from $6.07 billion in the same quarter a year earlier. Same-store sales rose 3.4%, but Macy’s reduced its same-store sales guidance, in part due to the need for continued markdowns to clear inventory.

Terry J. Lundgren, chairman and CEO, cited omnichannel innovation, such as a growing buy online-pickup-in-store program, as well as targeting of Millennial shoppers, as factors that should help Macy’s performance in the second half of the year.

“We are approaching the second half of 2014 with confident optimism in our business strategies, merchandise assortments and marketing plans, tempered with the reality that many customers still are not feeling comfortable about spending more in an uncertain economic environment,” Lundgren said. “Thus, we remain focused on outperforming our competitors through innovation in omnichannel, which has added new dimensions in how consumers can shop us and how our company can satisfy customer demand. This includes a robust Buy Online Pickup in Store process, which has been rolled out to all full-line Macy’s stores nationwide so that it is fully available this fall and into the holiday shopping season. Moreover, our Millennial strategies have sharpened our merchandising and marketing to customers in the age range of 13 to 30. This has created new positive energy as our customers begin back-to-school shopping.”

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