Macy’s Q2 profit soars, ups outlook
Cincinnati Macy's net income surged in the second quarter as the chain saw a payoff from its focus on exclusive moderately priced fashions and tailoring its assortments to local markets. Based on strong revenue expectations, Macy's boosted its full-year profit forecast.
The chain posted net income of $147 million for the period ended July 31, compared with $7 million in the same period last year. Revenue rose 7.2% to $5.54 billion. Same-store sales were up 4.9%.
In recent months, Macy’s has emerged as a winner, particularly in the important battle for back-to-school consumers.
“We believe our business is beginning to hit its stride after implementing significant structural and organizational changes over the past two years," Terry J. Lundgren, Macy's chairman, president and CEO, said in a statement. "While the economic environment remains uncertain, Macy's and Bloomingdale's have a terrific opportunity to continue to take market share and grow our business profitably."
Macy's has greatly benefited from its localization plan, Lundgren said. The program, dubbed My Macy's, puts decisions on what merchandise to stock closer to customers. It has also put more experienced workers on its sales floor.