Macy’s Earnings Miss Shows Shoppers Seeking Discounts

August 14, 2014 by admin
Filed under Lingerie Events

Comments Off

Macy’s Inc. (M:US)’s latest quarterly results show cash-strapped shoppers are still on the hunt for bargains, putting pressure on retailers to cut prices in the back-to-school and holiday seasons.

The second-largest U.S. department-store chain posted earnings of 80 cents a share last quarter, missing the 86-cent average of analysts’ estimates compiled by Bloomberg. The Cincinnati-based company also cut its annual sales forecast, saying a second-half rebound was unlikely to make up for a sluggish year.

Chief Executive Officer Terry Lundgren has struggled to maintain Macy’s sales growth while a choppy economic recovery hurts consumer spending. Second-quarter sales (M:US) at stores open at least a year rose 3.4 percent, missing the 3.9 percent analysts had projected. The chain has had to rely on discounts and promotional events, such as its Friends Family sale, to get customers in the door, eroding margins.

“The consumer is still not out of the pressure zone,” Paul Swinand, an analyst at Morningstar Inc. in Chicago, said today in a phone interview. “They’re still below their comfort zone.”

Macy’s said same-store sales this year will rise as much as 2.5 percent, compared with a previous forecast of as much as 3 percent.

Swinand has a hold rating on Macy’s shares.

Macy’s fell 5.5 percent to $56.47 at the close in New York, the biggest drop since June 2012. The shares have gained 5.7 percent this year.

Sales Trail

Revenue rose 3.3 percent to $6.27 billion, an improvement from the first-quarter’s blizzard-fueled 1.7 percent drop, yet still less than analysts projected.

“Our sales trend improved at both Macy’s and Bloomingdale’s in the second quarter, reflecting a rebound in shopping activity once weather patterns normalized,” Lundgren said in the statement. “We also benefitted from a shift in a major Macy’s promotional event into the first two days of the quarter.”

The effect of the promotions showed up in the company’s gross margin, or the percentage of sales left after subtracting the cost of goods sold, which contracted to 41.4 percent from 41.8 percent.

The trends echo the results retailers of all stripes — from discounter Family Dollar Stores Inc. to luxury lingerie seller L Brands Inc. — reported after the last holiday shopping season.

Retail Sales

Figures released by the Commerce Department in Washington today signal Macy’s, which operates about 840 stores, isn’t the only retailer struggling to get consumers to open their wallets.

Total retail sales were little changed in July, the worst performance in six months, as tepid wage growth restrained U.S. consumers. The slowdown followed a 0.2 percent advance in June, the Commerce Department reported today in Washington. The median forecast of 82 economists surveyed by Bloomberg called for a 0.2 percent gain. Excluding cars, sales rose 0.1 percent.

Inflation-adjusted average weekly earnings dropped 0.2 percent in the 12 months through June, the worst performance since October 2012, according to Labor Department data. That left consumers with less money to spend.

Macy’s Chief Financial Officer Karen Hoguet said today on a conference call that consumers are still feeling the effects of an economy that “at best is improving very gradually.” Promotions will remain a fixture of the company’s strategy in the second half, she said.

“This is a very promotional business,” she said. “Our customer very much wants value and very much responds to promotions.”

Discount Trap

Macy’s has worked to blunt the discount trap by offering exclusive brands that consumers can’t get anywhere else and allowing managers to tailor merchandise selections to local tastes. The retailer also is investing in employee training and its online operations to boost sales.

“Macy’s is positioned with some of the best brands that retailers have access to, so I think they should be in good shape,” said Ken Murphy, who oversees $5 billion in assets as a U.S. equities portfolio manager at Standard Life Investments in Boston.

To contact the reporter on this story: Lauren Coleman-Lochner in New York at llochner@bloomberg.net

To contact the editors responsible for this story: Nick Turner at nturner7@bloomberg.net Kevin Orland, John Lear

Share and Enjoy

Tags: Lingerie Events Shows

Blue steel! Alessandra Ambrosio once again shows off her perfectly-sculpted …

August 14, 2014 by admin
Filed under Lingerie Events

Comments Off

By
MailOnline Reporter

Published:
13:27 EST, 13 August 2014

|
Updated:
14:18 EST, 13 August 2014

View
comments

There is no question that model Alessandra Ambrosio is at the top her game.

The Victoria’s Secret lingerie model has one of the world’s most enviable bikini bodies, and she’s not afraid to show it off.

On Tuesday, the mother-of-one was seen displaying her perfectly sculpted physique again on a family holiday in Honolulu, Hawaii.

Scroll down for video

Into the blue: Alessandra Ambrosio once again shows off her perfectly-sculpted bikini body as she enjoys a family holiday in Hawaii on Tuesday

Alessandra looked absolutely stunning in a blue graphic print two-piece bikini, with matching blue sunglasses.

Alessandra was joined on the beach by her daughter Anja, who she recently described as being a ‘little fashionista’.

The supermodel’s five-year-old daughter Anja – who she has with businessman Jamie Mazur – is already following in her footsteps and loves getting dressed up in her mother’s clothes.

Some people have all the luck: With her naturally good looks and physique, Alessandra finds bikini modelling a walk in the park

Blue steel! Alessandra showed off her rock hard abs as she strolled along the beach sipping a cocktail

Bikini goddess: Alessandra is currently enjoying a relaxing family break in Hawaii

Splashing around: Alessandra looked absolutely stunning in a blue graphic print two-piece bikini, with matching blue sunglasses

Family outing: The Victoria’s Secret Angel’s five-year-old daughter Anja – who she has with businessman Jamie Mazur – was also with her at the beach

Last minute adjustment: Alessandra keeps herself covered wearing a blue bikini in Hawaii

Wet hair, don’t care: The model was certainly in a relaxed mood as she swept her hair back while sitting on the beach

She gushed: ‘My daughter, she loves fashion. She’s a little fashionista. She has her own personality and style, and she loves playing with mommy’s clothes!’

Alessandra says her family, which also includes 22-month-old son Noah, inspired her to create her new casual clothing line, Ále by Alessandra, in keeping with her own bohemian style.

The collection features loose fabrics, effortless crop tops and fashionable beach cover-ups, which the brunette feels are perfect for the working mother.

Proud: The Victoria’s Secret lingerie model has one of the world’s most enviable bikini bodies, and she’s not afraid to show it off

No time to get board: The model was seen enjoying a number of activities as she took to the waves in Hawaii

Beach bum: Alessandra was joined on the beach by her daughter Anja, who she recently described as being a ‘little fashionista’

Mother’s little helper: Daughter Anja was seen following Alessandra as they strolled on the beach

Sipping away her troubles: The model looked to be in a state of bliss as she drank a cocktail on the beach

She added in an interview with E! News: ‘As a working mom, I need something that will go from day to night and something that you really don’t need to think too much. I wanted to do something easy for women.’

Alessandra has always wanted to design her own range and was motivated by her desire to help make women feel good.

The 32-year-old star said: ‘I love fashion. It’s in my blood. I always wanted to create my own brand… I wanted to do something that would make women feel good.’