Macy’s Inc. declares November/December 2018 sales results
Ø Positive Holiday sales for the second consecutive year
Ø Modifies annual sales and earnings direction down
Macy’s has announced its sales results for the months of November and December 2018. The company is also providing updated annual guidance and additional detail on anticipated fiscal 2018 performance.
Jeff Gennette, chairman and chief executive officer of Macy’s, Inc, says, “We delivered our second consecutive year of positive holiday comparable sales, driven largely by the traction of our strategic initiatives: Backstage, Vendor Direct, Store Pickup, Loyalty and Growth50. We experienced another period of double-digit growth in our digital business and continued strength in the Growth50 stores. The holiday season began strong, particularly during Black Friday and the following Cyber Week, but weakened in the mid-December period and did not return to expected patterns until the week of Christmas.
The holiday period, saw strong performance across a number of categories such as light jewellery, women’s shoes, fragrance, dresses, outerwear, active and home. This sales growth was largely counterbalanced by underperforming categories like women’s sportswear, seasonal sleepwear, fashion jewellery, fashion watches and cosmetics along with momentary challenges such as the fire in its West Virginia distribution centre; and underestimation of the impact of changes to the pre-Christmas earn and redeem promotional event.
The company is revising the guidance it provided in November and will continue to take the necessary steps in January to ensure a clean inventory position as it enters fiscal 2019. “Looking back at 2018, we met our goal of returning the company to growth. Our revised guidance is above the expectations we set at the start of the fiscal year, and we expect to deliver our fifth consecutive quarter of positive comparable sales, including ‘comping the comp’ of the 2017 holiday season. The North Star Strategy is gaining traction, and the entire organization is engaged and motivated to continue improving our performance in 2019,” concludes positive Gennette.News