Optimistic Macy’s 2Q Profit Falls

Despite posting a significant loss in profits this quarter, compared to the previous quarter and its results a year ago, Macy’s has brightened its profit outlook for the rest of the year. Macy’s renewed optimism stems from the fact that its second-quarter earnings, while down, managed to beat expectations thanks to Macy’s streamlining efforts.
 
In the quarter ending August 1, Macy’s brought in $7 million in profits, compared to the $73 million in profits it managed to accrue this time last year. However, many of the costs that held back Macy’s from posting a larger profit had to do with restructuring and honing its merchandise, meaning that the next quarter should bring a significant increase in profits.
 
Macy’s revenue this quarter slightly underperformed according to analyst expectations, the company bringing in $5.16 billion compared to a predicted $5.18 billion. This stems from a 9.5 drop in same-store sales from July of last year to this year, one that Macy’s expects to continue until consumer spending finally starts to turn around again.

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