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Macy’s 2nd Quarter Performance “Softer than Anticipated”

Now in the thick of the all important back-to-school shopping season, Macy’s is falling short of expectations. The retail giant’s net sales dropped 0.8% to $6.07 billion from last year’s $6.12 billion.

CEO Terry Lundgren blamed the wariness of consumers during  turbulent economic times. He said, “We had planned our second-quarter sales with a lower increase than the first quarter because of a shift in a major promotional event,” said chairman, president and chief executive officer Terry Lundgren. “Even so, second-quarter sales performance was softer than anticipated, and we are disappointed with the results. Our performance in the period, in part, reflects consumers’ continuing uncertainty about spending on discretionary items in the current economic environment. After a cool spring, we have taken appropriate markdowns and customers are responding favorably.”

Macy’s net income still managed to rise 0.7% to $281 million, or 72 cents a diluted share, for fiscal period ending August 3rd. During the same period last year, net income hit $279 million, or 67 cents a share. Analysts were anticipating EPS estimates of 78 cents and yearly net sales of $6.26 billion.