Home / Knowledge / News / Apparel/Garments / Weak consumer spending makes Macy's Q1 sales fall
Weak consumer spending makes Macy's Q1 sales fall
16
May '16
Courtesy: Macy
Courtesy: Macy's
US apparel retailer, Macy's reported a fall of 7.39 per cent in net sales in the first quarter of fiscal 2016, ended April 30, to $5,771 million as compared to $6,232 million in the corresponding quarter last fiscal owing to weak demand from consumers and lower spending on apparel and related categories.

Commenting on the results, Terry Lundgren, chairman and CEO of Macy's said, “We are seeing continued weakness in consumer spending levels for apparel and related categories.”

“Headwinds are also coming from a second consecutive year of double-digit spending reductions by international visitors in major tourist markets, where Macy's and Bloomingdale's are key destinations, as well as slowdown in some centre core categories – further intensifying the challenges associated with growing topline sales revenue,” he said.

“In particular, our sales trend relative to expectations meaningfully slowed beginning in mid-March, and first quarter results are below our original outlook,” he added.

Net income reported by the company for the quarter was $115 million as compared to $193 million in the previous fiscal, a fall of 40.41 per cent.

Diluted earnings per share were $313.5 in the quarter as compared to $340.7 in the previous quarter.

Noting that the uncertain direction of consumer spending makes predictions of future performance difficult, Macy's now expects full-year 2016 comparable sales on an owned plus licensed basis to decrease in the range of 3 per cent to 4 per cent. This compares with previous guidance for comparable sales on an owned plus licensed basis to decline by approximately 1 per cent in fiscal 2016.

“We are not counting on the consumer to spend more, so we are working harder to give customers more reasons to buy from us by delivering outstanding style, quality and value,” Lundgren said. (MCJ)

Fibre2Fashion News Desk - India

Must ReadView All

Apparel/Garments | On 5th Dec 2016

EC proposes new tax rules to support e-commerce in EU

The European Commission (EC) has unveiled a series of measures to...

Apparel/Garments | On 5th Dec 2016

Traders to intensify adoption of digital payments

Adoption of digital payments in their existing business format would...

Textiles | On 5th Dec 2016

US textile & apparel exports down 6.44% in Jan-Sept ’16

The exports of textile and apparel from United States were down 6.44...

Interviews View All

Divyesh Mashruwala
Akshar Industries

Surat dominates foiling, embossing and pleating

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Amardeep Singh
Orient Craft

'In export markets, the trend in terms of embroidery, is towards matte...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
December 2016

December 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


Advanced Search