It has basically been a massive sh*t storm for Macy’s especially since their merger.
consumers shopping former May Co. doors converted to Macy’s less than
originally hoped, and merger costs continuing to be digested, the
retailer’s second-quarter earnings fell 76%, according to WWD.
However, Macy’s is trying to keep a happy face. "While
the second quarter was below our initial expectations, we did see
improving sales trends through the quarter in former May Co. stores and
in home-related merchandise categories," said Terry Lundgren, chairman,
president and chief executive officer, in a statement. "
Macy’s bought May
Co. two years ago for $17 billion, including debt, and converted about
400 May doors to Macy’s units (including Chicago’s Marshall Fields).
The difficulties in integrating the former May Co. doors haven’t
stopped Macy’s from seeking other opportunities. In a surprising new
wrinkle, Macy’s could decide to buy a wholesale brand, as disclosed by
Karen Hoguet, Macy’s chief financial officer, during Wednesday’s
Summing up the second quarter, Hoguet said, "It all boils down to three
key messages: We’re not happy with our performance. We hoped sales
would have been stronger. Having said that, trends in the later part of
quarter in home-related merchandise and former May Co. doors give us
reason to be optimistic that we can improve the sales trend in the back
half of the year. Thirdly, the economic environment is feeling more
challenging than we anticipated at the beginning of the year."
Read WWD’s "Tough Road For Macy’s"