Macy’s comparable sales on owned basis rise by 2.1

For Macy’s, Inc., its comparable sales on an owned basis, comparable sales rose by 2.1 percent at the end of the November/December period, consistent with the company’s guidance for an increase of 1.8 percent to 2.8 percent in the full fourth quarter. Its comparable store sales on an owned plus licensed basis rose by 2.7 percent (on y-o-y basis) at the edn of the same period and also within the company’s guidance, provided on November 12, 2014, for a comparable sales increase of 2 percent to 3 percent.

Terry J. Lundgren, Macy’s, Inc. chairman and chief executive officer said the results proved satisfactory, as the company “reversed trend from a soft third quarter and set the stage for continued progress going forward.” He added, “Our digital strategies represent an increasingly important driver of the business. Macy’s and Bloomingdale’s websites, apps and fulfillment systems performed exceptionally well in the holiday season.” He also noted the success of the full companywide rollout of Buy Online Pickup in Store, and the initial positive results from the pilot Same Day Delivery in eight selected markets.

Macy’s, Inc. is maintaining its guidance for comparable sales growth on an owned plus licensed basis in the fourth quarter of 2014 to a range of 2.5 percent to 3 percent and for owned basis, fourth quarter comparable sales are now expected in the range of 1.9 percent to 2.4 percent. Also, the company is maintaining its full-year 2014 earnings guidance between $4.25 to $4.35 per diluted share.

Also, the retailer is restructuring its merchandising and marketing functions at Macy’s and Bloomingdale’s consistent with the company’s omnichannel approach to retailing, as well as a series of adjustments to its field and store operations to increase productivity and efficiency. The company is incorporating new initiatives to evolve its business model and invest in continued growth opportunities as consumers change of in shopping habits which includes the internet. “We must continue to invest in our business to focus on where the customer is headed – to prepare for what’s next,” said Terry J. Lundgren, added. “Macy’s, Inc. has benefited in recent years by having invested early and aggressively in our M.O.M. strategies (My Macy’s localization, Omnichannel integration and Magic Selling customer engagement). This has included talent, technology, omnichannel infrastructure and fulfillment capability. “We remain committed to M.O.M. as our strategic roadmap,” he noted. With changes being announced today, Macy’s, Inc. intends to close 14 stores and reduce staff by 1,300. It noted it will be increasing its workforce in some functions and locations and decreasing in others.