Macy's puts up strong third quarter numbers, raises profit outlook and top end of full-year revenue
Macy’s third-quarter sales declined as consumers remain cautious on their spending, but the results and its adjusted profit both topped Wall Street’s expectations
Macy's third-quarter sales declined as customers grow more cautious with their spending, but sales and profit both topped Wall Street expectations. The department store also raised the top end of its full-year revenue and adjusted profit forecasts.
Shares surged nearly 7%, or 88 cents, to $13.48 in mid-day trading on Thursday.
Spending by Americans has been an engine for the overall economy, but months of rising prices and higher costs of credit are starting to show. And even though inflation has eased, shoppers are still feeling stretched.
“It's a highly competitive environment,” Macy's CEO Jeff Gennette told The Associated Press during a call on Thursday. “The budgets of our customers are definitely pressed. So even though you see the break on the prices across all of our non-discretionary categories, it’s still much higher than it has been historically and certainly in the last year.”
Retail sales slipped in October, according to U.S. data released this week, ending six straight months of gains. Some of that decline was due to falling prices for both gasoline and cars, however.
A flurry of retailers have been reporting quarterly results this week. Also on Thursday, Walmart posted better-than-expected third-quarter results as its low prices attract shoppers looking for deals in a tough economic environment. But it gave a muted outlook and shares slid early.
On Wednesday Target posted better-than-expected profits for its third quarter, but sales slid with customers growing more cautions with their money.
Home Depot had a strong third-quarter, but sales fell
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