Macy’s September Sales Dip

Macy’s Inc. (M - Analyst Report), the operator of department stores, recently reported a 2.4% decline in total sales for the month of September. Total sales for the month were $2,043 million versus $2,093 million posted in the same month last year.
 
Year-to-date total sales were down 8.5% to $13,948 million from $15,244 million reported in the same period last year.
 
Online sales, which include macys.com and bloomingdales.com, jumped 14.8% for the month under review, and were up 13.3% year-to-date.
 
The company’s comparable-store sales for the month of September 2009, dipped 2.3%, whereas year-to-date comps slid 8.2%.
 
Macy’s department stores sell a wide range of merchandise. Macy’s products include men’s, women’s, and children’s apparel and accessories; cosmetics; home furnishings and other consumer goods.
 
However, sales at these departmental stores have been falling, as consumers, hit by recession and with less disposable income, focus more on basic items such as food. Moreover, rising unemployment is also taking its toll on consumers’ spending abilities.
 
Macy’s now expects fiscal 2009 same-store sales to decline in the range of 7% to 7.5% as against 6% to 8% forecasted earlier. The company anticipates same-store sales in the second half of fiscal 2009 to fall between 5% and 6%.
 
Macy’s currently operates more than 840 department stores in 45 states, the District of Columbia, Guam and Puerto Rico.

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