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Macy’s Same-Store Sales Drop despite Revival Efforts in 2Q15


Aug. 21 2015, Updated 10:06 a.m. ET

2Q15 same-store sales

Macy’s (M) same-store sales declined by 2.1% on an owned basis in 2Q15 compared with last year’s comparable quarter. The company’s same-store sales, including licensed stores, declined by 1.5% in the second quarter.

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Weakness in same-store sales

Macy’s same-store sales have been under pressure due to competition from online retailers like Amazon (AMZN) and off-price retailers such as TJX Companies (TJX) and Ross Stores (ROST). Macy’s same-store sales declined by 0.7% in 1Q15. The company reported a decline in its same-store sales in two of the four quarters of fiscal 2014. The decline in foreign tourist business affected same-store sales growth by 1% in 2Q15 and 1Q15 as well. We reviewed some of the factors that impacted Macy’s sales in Part 2 of this series.

The decline came despite Macy’s numerous efforts to boost its same-store sales growth. Some of the company’s initiatives include expanding its merchandise selection and increasing investments in the Bluemercury beauty business. In recent months, the company expanded its merchandise across various categories. This included the launch of a new line of intimate apparel in collaboration with supermodel Heidi Klum, and the release of an exclusive bedding collection in partnership with Dormify, an online dorm furnishings retailer.

Macy’s makes up 0.9% of the portfolio holdings of the SPDR S&P Retail ETF (XRT) and 0.1% of the SPDR S&P 500 ETF Trust (SPY).

Same-store sales elsewhere

JCPenney’s (JCP) initiatives to boost its sales showed results. The company reported same-store sales growth of 4.1% in 2Q15. Nordstrom’s (JWN) same-store sales grew by 4.9% in 2Q15. The company’s annual anniversary sale event was one of the sales drivers in the quarter. Same-store sales at Dillard’s (DDS) grew 1% in 2Q15, as strong sales in shoes as well as juniors’ and children’s apparel was offset by weakness in the home and furniture category. Kohl’s (KSS) Greatness Agenda initiative didn’t help it much, and the company’s same-store sales grew by 0.1% in the second quarter.

The next part of this series looks at Macy’s margins in 2Q15.


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