Last week also witnessed second-quarter earnings report from Macy’s, Inc. (NYSE:M), a Department store giant. For the three months ended July 28, Macy Inc. reported a 16 percent increase in profit to $279 million, or 67 cents a share, compared with $241 million, or 55 cents, a year earlier, which beats analysts’ estimate of 64 cents a share. The parent company of the Macy’s and Bloomingdale’s chains, reported a jump of 3 percent in total sales for the period, to $6.12 billion. The company’s online sales jumped 36 percent, while Same-store sales rose by 3 percent. Macy’s has fared better than rivals such as J.C. Penney Company, Inc. (NYSE:JCP), owing mainly to a localization initiative implemented three years ago. Macy’s have also gained from introducing exclusive brands such as the Material Girl line designed by singer Madonna and her daughter Lourdes. Satisfied with the performance, company has raised its full year earnings forecast to $3.30 to $3.35 a share.
Nordstrom, Inc. (NYSE:JWN) reported its second quarter earnings report last week, with an 11 percent fall in earnings. The results for the quarter exceeded analysts’ expectations, but were lower than last year’s. The upscale, Seattle-based fashion retailer reported net earnings of $156 million, against $175 million in the same quarter the previous year. The fashion retailer’s sales were boosted mainly from gains at its lower-priced Rack chain. Same-store sales for the company were up by 1.1 percent at regular Nordstrom department stores, while the sales at Rack stores grew 7.7 percent. The Seattle-based company opened six new Rack stores during the first half of the year, and plans to exponentially multiply by 2016 to 230 Rack stores. The major performance came from the online sales, which continued to show strong growth with an increase of 40 percent.
Ralph Lauren Corp (NYSE:RL) also announced their first-quarter results last week. The company reported an increase of 5 percent in net income from $184.1 million, or $1.90 per share, a year ago to $193.4 million, or $2.03 per share for April-June quarter. Analyst expected net income of $1.78 per share, according to FactSet. Revenue for the quarter jumped 4 percent to $1.59 billion from $1.53 billion, against analyst’s expectation of $1.58 billion. The main boost came from the increased demand in North America and lower tax rate. Revenue rose 3 percent from sales to other stores. Ralph Lauren’s decision of cutting distribution to retailers in China and winding down its American Living clothing and housewares brand, backfired and dented the company’s earnings. For the coming quarter, company expects a fall in revenue, due to stronger dollar, which affects its overseas sales. “The outlook for consumer spending and global economic growth remains challenging and we are planning our business accordingly,” said CEO Roger Farah.