Retail leader Macy's blamed seasonal spending habits of its consumers as the contributing factor to its second-quarter financial statements. In a report by USA Today, Chief Executive Office Terry Lundgren expressed the company's disappointment, failing even by analysts' estimates. This is the first time in six years that the company has not met Wall Street expectations. The company earned a total of USD281 million in profit from its sales of USD6.1 billion. Shares went down to USD47 on the New York Stock Exchange, which is over 3%.
However, Lundgren vows that the retail company will do everything in its power to turn things around. "We also have intensified Macy's marketing support throughout the second half of the year to emphasize the fashion and value we deliver," he said. He also added that despite the bump in performance, he is optimistic for Macy's in the coming months. Merril Lynch seconded Lundgren's sentiments, noting that this quarter for Macy's was a "chink in the armor, but not a longer-term issue."
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