Sponsors
Billabong ▼ -0.020 | PPR ▲ +0.55 | American Apparel ▼ -0.013 | The Buckle ▼ -0.53 | Columbia ▲ +0.18 | Deckers Outdoor ▼ -0.24 | Dicks ▼ -0.04 | Foot Locker ▼ -0.07 | Genesco ▲ +0.10 | Iconix Brand Group ▼ -0.19 | Jarden Corp ▲ +0.07 | Nordstrom ▼ -0.21 | Luxottica ▼ -0.31 | Nike ▲ +0.35 | Pacific Sunwear ▼ -0.05 | Skullcandy ▼ -0.01 | Sport Chalet - 0 | Urban Outfitters ▼ -0.68 | VF Corp ▼ -0.13 | Quiksilver ▼ -0.03 | Zumiez ▼ -0.43 | Macys ▼ -0.56 | Tillys ▼ -0.04 |
Ticker Sponsor
Readers Say
Great insight into the issues
Great insight into the issues

I am a big fan of Tiffany and her team as well as an avid reader of Shop-Eat-Surf. I shop, I eat, I surf -- I should pay.

- By Kevin Bailey, President, Vans
The one, undisputed leader
The one, undisputed leader

It is common knowledge in our industry that there is one undisputed leader in reporting on the topics, businesses and trends that impact all of us the most, and it is shop-eat-surf.com. Their access to those who make our industry happen is second to none, and we value not only the content of their reporting but the editorial thought on what it all means both in the present as well as the future. If we were asked to give a rating, it would be five out of five stars.

- By Craig Levra, CEO, Sport Chalet
Industry Insight

MOSS ADAMS: Webinar 12/2 on internal controls to increase the value of your business.
AGENDA: 12/30 deadline to pre-register for Jan. 5-6 Long Beach show.
CIT TRADE FINANCE: Middle-market retailers cautiously optimistic for holiday.
Details on Industry Insight.


Tiffany Montgomery
Print This Article

Macy's cutting buying plans for spring and fall

By Tiffany Montgomery
November 13, 2008 6:37 AM

Macy's executives said in an earnings conference call Wednesday that a steeper than planned slowdown in sales in the third quarter, especially in October, has the company reducing buying plans for spring and fall 2009, in addition to cutting capital spending.

The company had expected an improvement in results in spring as it anniversaries soft results from the previous spring, but is now less confident of a rebound then.

"We are ... reducing our plans relating to merchandise receipts and our expense budgets for both spring and for fall of 2009, given this uncertainty. If trends improve, we will be able to add back some of these capital projects and order more merchandise, but at this point we don't see any upside in being optimistic," CFO Karen Hoguet said during the call, according to the transcript by Seeking Alpha.

Macy's, the largest department store customer for many action sports industry customers, said same-store sales fell 6 percent in the third quarter, while total sales fell 7 percent to $5.5 billion. Macy's recorded a net loss of $44 million vs. net income of $33 million during the same period last year.

The company's average unit retail decreased in October for "the first time I can remember," Hoguet said. Macy's full-priced business also slipped in October, a change from earlier in the year when the clearance business was weak.

In another interesting twist, Macy's moderately priced private label brands, such a Style & Co, had resurgence during the quarter as shoppers looked for value and practical purchases.

Shoppers' focus on value has Macy's reviewing its marketing plans and reviewing its spring merchandise plans to make sure the department store is focused on the right strategy.

The weakness that accelerated in the third quarter extended across all categories and geographies, the company said. Southern California and Florida were the toughest markets.

The weakest categories were furniture and mattresses.

On a bright note, Bloomingdale's is outperforming its upscale competitors.

With regard to store closures, Hoguet said the company is conducting its usual review of underperforming stores. She does expect stores to close, but said the number will not be extraordinary or any different than the number of stores that typically close in a year.

The company expects same-store sales to be down 1 to 6 percent in the fourth quarter.

 


Articles You Might Have Missed