Drosos shared her top takeaways from a recent Botswana trip and her insights into the natural diamond market.
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.
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
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.
The Latest
The retailer is expanding its footprint via retail partnerships, previously inking deals with Kohl’s and Macy’s.
Members will now have access to “eBay Concierge,” a white-glove dedicated customer service team.
Ho Brothers offers scalable solutions for the future of custom jewelry.
The deadline to apply is March 29.
Ticketholders can dig for diamonds in the Arkansas park ahead of the eclipse viewing event on April 8.
The versatile jewel pairs ancient Egyptian inspiration with a modern design.
Distinguishing natural diamonds from laboratory-grown stones – now more available than ever – has been difficult for jewelers. Until now.
The company’s rough sales improved for the third sales cycle in a row.
The spring application window closes on March 31.
It’s estimated to sell for up to $1.3 million at the upcoming sale on March 28.
It aims to support aspiring journalists, media professionals, content creators, and communicators.
“Ice Cold: An Exhibition of Hip-Hop Jewelry” will open at the New York City museum on May 9.
He succeeds David Bouffard, who is leaving Signet and the RJC next month.
Three winners will have their jewelry sketches turned into a real piece of jewelry in time for the holiday.
“Power of Couture” recalls Frédéric Boucheron’s love of fabric using diamonds and rock crystal.
A Harry Winston diamond necklace and other top lots failed to find buyers.
Lilian Raji offers advice to a business owner who is having trouble crossing the finish line with customers.
He brings 30 years of retail store management experience to the role.
At its annual gala, Diamonds Do Good will present awards to GIA, London Jewelers, and Lisa Bridge.
Vibrant gemstones, layered diamond pieces and brooches with a story stole the show.
The 2024 winners expressed gratitude to their teams, industry colleagues, and those who turn jewelry dreams into reality.
They are Marla Aaron, Marie Lichtenberg, and Jean Prounis.
The Jewelers’ Security Alliance will honor the industry veteran at its upcoming annual luncheon.
The annual video stars Pomellato CEO Sabina Belli alongside Jane Fonda and other celebrities and activists.
Sponsored by IGI
The Pennsylvania native, who sold for Gumuchian and others, is remembered for being kind and outgoing.