Macy's November Sales Drop - Analyst Blog

Macy’s Inc. (M), the operator of department stores, recently reported a 6.3% decline in total sales for the four-week period ended Nov 28, 2009. Total sales for the month were $2,177 million versus $2,324 million posted in the same month last year.
 
Year to date, total sales dipped 7.6% to $17,817 million from $19,282 million reported in the same period last year.
 
Online sales, which include macys.com and bloomingdales.com, sustained their growth momentum in November and jumped 22.6% for the month under review, and were up 16.5% year-to-date.
 
The company’s comparable-store sales for the month of November 2009 fell 6.1%, whereas year-to-date comps slid 7.3%.
 
Macy’s notified that the sales in November were negatively impacted by the shift of a sales event into December and warm weather, affecting the sales of sweaters, coats and other winter garments. However, the retailer reported robust sales on Black Friday.
 
Macy’s department stores sell a wide range of merchandise. The company’s products include men’s, women’s, and children’s apparel and accessories, cosmetics, home furnishings and other consumer goods.
 
However, sales at these departmental stores have been falling, as consumers, hit by the recession and less disposable income, are focusing more on basic items such as food.
 
Macy’s reiterated that it still expects fourth-quarter 2009 comparable-store sales to decline in the range of 1.0% to 2.0%. The company also reaffirmed its earnings outlook between $1.00 and $1.05, excluding restructuring costs.
 
Macy’s currently operates more than 850 department stores in 45 states, the District of Columbia, Guam and Puerto Rico.
 
In a separate story, Macy’s declared that it has entered into an agreement with Luxottica Group SpA (LUX), a designer, manufacturer, distributor and retailer of sports eyewear, to open additional Sunglass Hut points of sale in about 430 Macy's outlets beginning spring 2010, with completion slated for spring 2011.
 
Currently, Macy’s operate 240 Sunglass Hut departments. The new agreement will bring the total to 670.
 
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