CollectionsApr 19, 2024
Piece of the Week: Retrouvaí’s Treasure NecklaceA new addition to the “Heirloom” collection, this one-of-a-kind piece features 32 custom-cut gemstones.
FinancialsFeb 09, 2016
Department stores don’t dazzle in Q2
J.C. Penney and Nordstrom reported modest gains in same-store sales while Macy’s saw its comps slip and Kohl’s came in flat.
The fine jewelry department of the J.C. Penney store in Brooklyn, N.Y; the retailer reported another quarter of “improved performance” in Q2, with fine jewelry sales leading the way.
New York--J.C. Penney and Nordstrom reported modest gains in same-store sales in the second quarter while Macy’s saw its comps slip and Kohl’s came in flat.
Department store chains are facing the same problems as all retailers--consumers are spending more selectively and, when they do decide to part with their money, have more choices about where to do so. In this particular second quarter, there was Amazon’s first Prime Day sales event with which to contend.
This trend has the big chains pouring money into customer-facing services such as same-day delivery for online purchases, the option to pick up in-store and, to accommodate today’s deal-minded consumer, opening more off-price outlets. Macy’s, in fact, is launching an entire new chain of stores dedicated to discounted merchandise, Macy’s Backstage.
Highlights from J.C. Penney, Macy’s, Nordstrom and Kohl’s second quarter results, which came in last week, are below.
J.C. Penney Co. Inc.
Same-store sales increased 4 percent in the second quarter ended Aug. 1 with Fine Jewelry, which is headed by Pam Mortensen, named as one of the company’s top-performing merchandise divisions. The others were the Sephora shop-in-shops, Men’s and Home.
Net sales reached $2.88 billion, a 3 percent increase from the second quarter 2014. Gross margin rose slightly, from 36 to 37 percent of sales.
CEO Marvin Ellison said the fact that the retailer logged another quarter of improved performance was due to the “commitment and diligence of the J.C. Penney team.”
Macy’s Inc.
In a “disappointing” second quarter, same-store sales on an owned plus licensed basis were down 2 percent year-over-year.
Total sales were down 3 percent, from $6.27 billion to $6.10 billion. Gross margin was down slightly, from 41.4 percent of net sales to 40.9 percent.
CEO and Chairman Terry J. Lundgren said the retailer was “disappointed” by its second quarter results.
The reasons named were the removal of a Friends & Family event from the Macy’s calendar in Q2; the West Coast port slowdown, which pushed planned markdowns into the second quarter to clear merchandise that arrived late; the strong U.S. dollar negatively impacting tourist spending; and “restrained” overall consumer demand.
In the fall, Macy’s plans to open a location in Ponce, Puerto Rico, a Bloomingdale’s in Honolulu, six Macy’s Backstage stores, one Bloomingdale’s Outlet and 10 Bluemercy stores. Bluemercury is a chain of beauty/spa stores Macy’s acquired in March.
The retailer will close a
store in downtown Los Angeles to build a new store in the same mall.
Nordstrom Inc.
Nordstrom’s same-store sales were up 5 percent year-over-year in the second quarter ended Aug. 1. The company’s Anniversary Sale, its largest promotional event of the year, took place in the second quarter and met company expectations.
Total sales for Nordstrom increased 9 percent in the quarter, from $3.3 billion to $3.6 billion. Its entry into Canada, opening of NordstromRack.com and acquisition of Trunk Club, a personal shopping site for men, drove more than a third of sales growth.
Gross profit as a percentage of net sales remained unchanged at 35.4 percent.
Nordstrom said in the third quarter, it plans to open full-line Nordstrom stores in Vancouver, British Columbia, Minneapolis and Milwaukee, relocate a store in Los Angeles and open 16 Nordstrom Rack stores.
Kohl’s Corp.
Both same-store and total sales were flat essentially in the second quarter ended Aug. 1.
Sales reached $4.27 billion compared with $4.24 billion in the second quarter 2014. Gross margin was 38.9 percent, compared with 39 percent a year ago.
Chairman, CEO and President Kevin Mansell said second quarter sales fell short of expectations. He blamed the shortfall on the shift of back-to-school special sales events in tax-free states from July into August.
Kohl’s ended the quarter with 1,164 stores in 49 states, up slightly from 1,160 stores a year ago.
More on Financials
The Latest
CrimeApr 19, 2024
Grand Jury to Hear Case Against Jeweler Charged in Fatal Shove Following IJO ShowLast month in Dallas, David Walton pushed another jeweler, David Ettinger, who later died.
MajorsApr 19, 2024
Unique Designs Acquires China PearlThe move will allow the manufacturing company to offer a more “diverse and comprehensive” range of products.
Brought to you by
The Blueprint for Success in Scalable, Personalized Jewelry RetailWith Ho Brothers, you can unlock your brand's true potential and offer customers the personalized jewelry experiences they desire.
GradingApr 19, 2024
AGS Ideal Report Now Available in Printed FormFrom now through mid-May, GIA will be offering the reports at a 50 percent discount.
Weekly QuizApr 19, 2024
This Week’s QuizTest your jewelry news knowledge by answering these seven questions.
SourcingApr 18, 2024
Diamond Trade Remains Cautious Amid Economic UncertaintyDe Beers’ rough diamond sales were down 18 percent year-over-year in its latest round of sales.
Supplier BulletinApr 18, 2024
Discover History’s Hidden Gems at the Las Vegas Antique Jewelry & Watch ShowSponsored by the Las Vegas Antique Jewelry & Watch Show
Brought to you by
How Jewelers of America Represents Your BusinessFor over 30 years, JA has advocated for the industry, fought against harmful legislation and backed measures that help jewelry businesses.
WatchesApr 18, 2024
Watch E-tailer Collectability Hires Kelly YochThe Patek Philippe expert will serve as personal curator for the brand-focused company.
WatchesApr 18, 2024
TAG Heuer Opens Its Largest Standalone Boutique at SeaThe 553-square-foot shop is aboard the Carnival Jubilee cruise ship.
Policies & IssuesApr 17, 2024
NDC Prevails in U.K. Case Over Lab-Grown Diamond AdvertisingNDC filed a complaint against Skydiamond for use of phrases like “diamonds made entirely from the sky.”
Events & AwardsApr 17, 2024
And the 2024 Winner of the Shipley Award Is … John Carter received the AGS’s highest honor Tuesday afternoon at Conclave in Austin, Texas.
MajorsApr 17, 2024
Stuller’s B&D Opens New HeadquartersB&D Sales and Service held a ribbon-cutting event for its new location in Cranston, Rhode Island.
CollectionsApr 16, 2024
Akaila Reid Launches ‘Eat Cake’ CollectionIt’s ultra-feminine and filled with gold, pearls, and soft pastels.
MajorsApr 16, 2024
Loudr Adds 2 DirectorsEmily Highet Morgan and Emily Bennett have joined the agency’s team.
MajorsApr 16, 2024
Stuller Releases First Lab-Grown Diamond Jewelry CatalogIts updated book for mountings is also now available.
SourcingApr 16, 2024
Karen Rentmeesters Takes Over as Interim CEO of AWDCShe has been with the organization since 2010, most recently serving as its chief officer of PR and industry relations.
TechnologyApr 15, 2024
Judge Rules Jeweler’s Lawsuit Against PNC Bank Can Move ForwardJoyce’s Jewelry sued the bank after cybercriminals drained its accounts of nearly $1.6 million through a series of wire transfers.
IndependentsApr 15, 2024
Alfred W. DeScenza of DeScenza Diamonds Dies at 95He is remembered by loved ones for his loyalty, integrity, and kindness.
AuctionsApr 15, 2024
Madeleine K. Albright Jewelry, Pins Coming to AuctionHosted by Freeman’s | Hindman, the sale will take place May 7-8.
AuctionsApr 15, 2024
All of Sotheby’s ‘Rough Diamonds’ Sold in Less Than an HourThe auction house said all 24 timepieces offered in its underground sale of rare and avant-garde watches quickly found buyers.
Events & AwardsApr 15, 2024
10 Can’t-Miss Sessions at AGS Conclave 2024From lab-grown diamonds and AI to the inevitable Taylor Swift mention, here are some of Conclave’s most intriguing educational offerings.
Recorded WebinarsApr 12, 2024
Watch: What Jewelers Need to Know About InsuranceFrom cybersecurity liability to trade show coverage, insurance experts share tips on how to build the right policy.
CollectionsApr 12, 2024
Piece of the Week: Lionheart’s Evil Eye Gemstone CharmThe charm is a modern rendition of the evil eye amulet that has been worn for thousands of years.
Events & AwardsApr 12, 2024
The Jewelry Symposium Announces 4 Scholarship WinnersAhead of its trade show next month, TJS awarded free registration and accommodations to one jewelry professional and three students.
Policies & IssuesApr 11, 2024
SRK Exports’ Journey Toward Net Zero Impact By the end of this year, SRK’s diamond manufacturing complexes will achieve net zero emissions, one of an impressive array of achievements.
Lab-GrownApr 11, 2024
AGTA Bans Lab-Grown Diamonds, Gemstones at GemFairMembers can still sell lab-grown stones, it said, but only natural gems are allowed on the show floor.
