Macy’s third quarter report saw over a 30% rise in profits, which is good news considering the holiday shopping season will be shortened this year with a late Thanksgiving. This is owed in part to their positive execution of their omni-channel strategy and localized promotion tactics.
According to the Los Angeles Times, CEO Terry Lundgren said they were entering Q4 “with confidence.”
From the article:
It’s a telling statement, considering that the holidays — which account for as much as 40% of a retailer’s annual sales — can cushion some companies for months afterward or render others investor pariahs.
This year the pressure is even heavier because retailers have only four weekends between the two holidays to push their merchandise, compared to five last year.
Macy’s, which also owns the Bloomingdale’s brand, said it intensified its marketing strategies in the third quarter and boosted its omnichannel efforts, helping shoppers move seamlessly from digital to brick-and-mortar consumption.
Same-store sales at units open at least a year rose 3.5%. Overall revenue jumped 3.3% to $6.3 billion.
The company maintained its projections from August, predicting that same-store sales would be up 2.5% to 4% in the second half of the year.
In afternoon trading in New York, Macy’s stock was up 9.6%, or $4.42, to $50.76 a share.