Kohl’s, Macy’s and Nordstrom’s Earnings Reports Give Positive Signs
At the same time, sales were less but there was more momentum providing an outlook that was more encouraging for the remainder of 2016.
Initiatives likely to help growth in the futures were also discussed in the reports, with a consensus reporting there would be an increase in sales during the last quarter of the year.
Macy’s said it has plans to close 100 of its 728 stores before the end of its current fiscal year. That represents a reduction of 14% of its existing stores.
Management is hoping to transfer some customers from their closed stores to other locations nearby. Some of the stores will be given a sprucing up with added concessions of fashion brands.
Concessions will help the retailer hold less inventory of their own, while filling their locations with the most current merchandise available from vendors.
The company is becoming leaner and has strong growth potential thanks to CEO Terry Lundgren’s work on streamlining the overall operation.
Second quarter nets sales at Macy’s were $5.8 billion, which represented a drop of 3.9% from the same quarter in 2015. Its comparable sales dropped by 2% for the basis of owned plus licensed.
Earnings were 3 cents per share during the quarter after non-cash settlement and impairment charges. During the same quarter a year ago, the company posted per share earnings of 64 cents.
Kohl’s posted sales of $4.2 billion, while its sales at comparable stores were lower by 1.8% which improved compared to this year’s first quarter when they dropped by over 2.8%.
Guidance was lowered by management at Kohl’s from between $4.05 and $4.25 to $3.80 and $4.00.
Kohl’s closed a dozen of its locations during the second quarter and is planning no additional closings for the rest of 2016 or during 2017. That is in stark contrast to the plan Macy’s has of closing 100 more units.
Some analysts are surprised that Kohl’s is not planning to close more stores due to many consumers now shopping online and not arriving at brick and mortar locations as often as before.
E-commerce has changed the way many consumers shop today and is growing each day with more and more incentives offered by online stores to attract shoppers.
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