Macy's share rose more than 18 percent on Thursday before trading after the department store chain posted weak holiday sales in 2018 and lowered its earnings outlook for the year.
In the holidays in the categories sportswear, pajamas, costume jewelery, fashion jewelery, watches and cosmetics, Macy & # 39; s did not produce the desired results according to Gennette. He said that the weakness overshadowed the overall sales growth.
Based on Thursday's results, Macy's expects no revenue growth for the 201
Macy & # 39; s now expects sales in the same stores to increase by only about 2 percent in the 2018 financial year. Sales growth in the store between 2.3 and 2.5 percent.
For Macys, the bar was high in the Christmas season, as many investors were unsure whether there was any growth potential for the retailer or whether the best was already behind him Macy's stock had over a 12-month period more as 80 percent recovered and rose in Thanksgiving.
Macy's has reported sales growth in the same stores for four consecutive quarters, meaning that the 2019 comparison will be even more difficult. Some of the company's recent drive to maintain momentum has been to invest in its mobile app, build a loyalty program, and expand its discount store as Macy's Backstage.
Gennette said Thursday that Macy's "will continue to take the necessary steps in January to ensure a clean inventory situation." Bringing items such as clothing and housewares off the shelves is a problem with department store chains as more and more shoppers go directly to brand stores and websites to make purchases. The result is an accumulation of inventories where companies like Macy's and Penney's have to lower prices to try to sell through them, and that affects their bottom line.
"The weak holiday performance now raises a big question mark about Macy's recovery strategy." GlobalData Retail CEO Neil Saunders said. "That had taken hold, but Macy's inability to anchor the foundations of retail in all areas of the business has disappointed him … These figures underscore the fact that it has to be tougher to create a more compelling product and experience in the business." Retail in 2019 and beyond. "