Macy’s is set to report second-quarter earnings before the bell on Wednesday.
Here’s what Wall Street is expecting, based on a survey of analysts by Thomson Reuters:
- Earnings per share: 51 cents
- Revenue: $5.55 billion
- Same-stores sales: a decrease of 0.9 percent on an owned-plus-licensed basis
The department store sector — which J.C. Penney, Lord & Taylor and Dillard’s — is viewed to be one of the most threatened by Amazon today, as shoppers increasingly opt to ring up purchases online while foot traffic dwindles at shopping malls. Brands like Nike and Vans owner VF Corp. are also moving more of their operations away from wholesale partners and prefer to sell more directly to consumers.
In turn, Macy’s has been looking for ways to keep its stores and assortment of inventory relevant. The department store chain recently acquired New York-based concept shop Story and bringing on its founder, Rachel Shechtman, to become “brand experience officer.” Macy’s has also been testing pop-up marketplaces within stores in selected cities, where it’s selling merchandise from some e-commerce brands.
Hoping to improve customers’ in-store experience, Macy’s is in the midst of rolling out mobile checkout to all of its locations by year-end and is adding virtual reality shopping to some stores.
The company has also been adding its off-price concept Macy’s Backstage to stores — including those at premium shopping malls. The goal is to find new uses for its real estate. Like other department store operators, Macy’s has shuttered some of its locations in recent years while it works with Brookfield Asset Management to consider selling or repurposing about 50 stores.
Macy’s shares are up nearly 95 percent from a year ago, bringing the retailer’s market cap to $12.3 billion.
This is a developing story. Please check back for updates.
