National Jeweler Network

Financial Reporting

In ‘tepid’ climate, Macy’s comps up 4 percent

November 14, 2013

Cincinnati--Same-store sales increased 4 percent in the third quarter for Macy’s Inc., the retailer reported Wednesday.  

Total sales hit $6.28 billion in the third quarter ended Nov. 2, a 3 percent increase from total sales of $6.08 billion in the prior-year period.

Net income also was up for the company. In the 13-week period, Macy’s income climbed to $177 million, as compared with $145 million in 2012.

“We were able to achieve a very successful third quarter of 2013, despite the tepid economic climate,” said Terry Lundgren, chairman, president and chief executive officer of Macy’s.

The company attributes the sales increase to continued success of the execution of its key strategies, including the My Macy’s localization, omni-channel integration and Magic Selling customer engagement. Additionally, Lundgren said the quarter benefitted from “intensified marketing strategies.”

The company also completed the second year of the multi-year remodel project at the Macy’s Herald Square flagship store in New York City, where the first and second floors were entirely recreated to better present important categories, including fine jewelry.

Looking ahead, Macy’s expects same-store sales to continue to increase at their current pace, rising 3 to 4 percent in the second half of 2013.

Lundgren also noted that the company is confident in its performance for the fourth quarter, with expected success driven by a wide selection of products from top brands and designers, available to customers online, in store and through applications, including the standalone Macy’s app and the just-launched Star Gifts app, among others.

“Our in-store and online executions will complement each other, and our marketing will clearly communicate the Magic of Macy’s and the exceptional holiday fashion at Bloomingdale’s,” he said.