Macy’s Inc. released its second quarter results Wednesday, showing that despite a 4 percent profit increase in Q2, it failed to make up for its lackluster first quarter. As a result, the company has downsized its guidance for full-year same-store sales growth to 1.5 to 2 percent, instead of the previous forecast of 2.5 to 3 percent.
The company revealed that sales in the second quarter of 2014 reached $6.267 billion, up 3.3% from total sales of $6.066 billion in the second quarter of 2013. For the year to date, Macy’s sales totaled $12.546 billion, up 0.7% from $12.453 billion the first half of 2013.
Looking ahead, the company is working to address the economic challenges that face many of its middle class consumers. Macy’s CEO Terry Lundgren, said, “We are approaching the second half of 2014 with confident optimism in our business strategies, merchandise assortments and marketing plans, tempered with the reality that many customers still are not feeling comfortable about spending more in an uncertain economic environment.”
Rough weather conditions kept shoppers home during the first quarter of the year, however, Lundgren noted the company has benefited from promotional events, by tailoring merchandise to locations, and through advancements in its omnichannel integration.
Lundgren said, “We remain focused on outperforming our competitors through innovation in omnichannel, which has added new dimensions in how consumers can shop us and how our company can satisfy customer demand.” He added, “This includes a robust Buy Online Pickup in Store process, which has been rolled out to all full-line Macy’s stores nationwide so that it is fully available this fall and into the holiday shopping season. Moreover, our Millennial strategies have sharpened our merchandising and marketing to customers in the age range of 13 to 30. This has created new positive energy as our customers begin back-to-school shopping.”