Skip to main content
The Globe and Mail
Support Quality Journalism.
The Globe and Mail
First Access to Latest
Investment News
Collection of curated
e-books and guides
Inform your decisions via
Globe Investor Tools
Just$1.99
per week
for first 24 weeks

Enjoy unlimited digital access
Enjoy Unlimited Digital Access
Get full access to globeandmail.com
Just $1.99 per week for the first 24 weeks
Just $1.99 per week for the first 24 weeks
var select={root:".js-sub-pencil",control:".js-sub-pencil-control",open:"o-sub-pencil--open",closed:"o-sub-pencil--closed"},dom={},allowExpand=!0;function pencilInit(o){var e=arguments.length>1&&void 0!==arguments[1]&&arguments[1];select.root=o,dom.root=document.querySelector(select.root),dom.root&&(dom.control=document.querySelector(select.control),dom.control.addEventListener("click",onToggleClicked),setPanelState(e),window.addEventListener("scroll",onWindowScroll),dom.root.removeAttribute("hidden"))}function isPanelOpen(){return dom.root.classList.contains(select.open)}function setPanelState(o){dom.root.classList[o?"add":"remove"](select.open),dom.root.classList[o?"remove":"add"](select.closed),dom.control.setAttribute("aria-expanded",o)}function onToggleClicked(){var l=!isPanelOpen();setPanelState(l)}function onWindowScroll(){window.requestAnimationFrame(function() {var l=isPanelOpen(),n=0===(document.body.scrollTop||document.documentElement.scrollTop);n||l||!allowExpand?n&&l&&(allowExpand=!0,setPanelState(!1)):(allowExpand=!1,setPanelState(!0))});}pencilInit(".js-sub-pencil",!1); // via darwin-bg var slideIndex = 0; carousel(); function carousel() { var i; var x = document.getElementsByClassName("subs_valueprop"); for (i = 0; i < x.length; i++) { x[i].style.display = "none"; } slideIndex++; if (slideIndex> x.length) { slideIndex = 1; } x[slideIndex - 1].style.display = "block"; setTimeout(carousel, 2500); } //

Macy's CEO said the holiday sales benefited from strong online sales and demand for gift products.

Reuters

Macy’s Inc reported a small decline in holiday same-store sales on Wednesday, surprising investors who were bracing for a sharper drop following an earlier profit warning.

The company, which cut its annual profit forecast in November blaming weak international tourism and sluggish mall traffic, reported a 0.6% decline in holiday sales during November and December.

Macy’s is among the first major corporate names to report sales for the holiday season, which is seen as a barometer for the health of U.S. consumer spending.

Story continues below advertisement

The retailer also plans to shutter 28 Macy’s locations and one Bloomingdale’s store in the coming weeks, a Macy’s spokeswoman said.

She said the closures were part of a routine review of the company’s store portfolio. Macy’s operates about 860 stores in the United States.

For the full quarter, analysts were expecting a 1.8% decline in same-store sales, according to IBES data from Refinitiv.

“It’s bit of a relief for investors, as they were concerned sales were going to be down more than that,” Ken Perkins, founder of research firm Retail Metrics told Reuters.

Given the traffic at stores did not look particularly great during the holidays, the sales number looks good, Perkins said.

He cautioned, however, that heavy discounting during the season could dent the company’s margins.

Chief Executive Officer Jeff Gennette said Macy’s holiday sales benefited from online purchases and demand for gift products, as well as a complete revamp of about 150 stores with fresh interiors and better merchandise.

Story continues below advertisement

U.S. consumers are increasingly spending more money online rather than queuing up at physical stores during the holiday season, forcing traditional brick-and-mortar retailers to invest in more shopping and delivery options.

U.S. e-commerce sales in the period from Nov. 1 through Christmas Eve rose 18.8%, according to a Dec. 25 report by Mastercard Inc, while overall holiday retail sales, excluding autos, rose just 3.4%.

Consumer spending in the country is benefiting from wage growth and the lowest unemployment rate in nearly half a century.

Shares of the company, which rose as much as 5%, were marginally up at $17.78.

Your Globe

Build your personal news feed

  1. Follow topics and authors relevant to your reading interests.
  2. Check your Following feed daily, and never miss an article. Access your Following feed from your account menu at the top right corner of every page.

Follow topics related to this article:

View more suggestions in Following Read more about following topics and authors
Report an error
Tickers mentioned in this story
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

If you do not see your comment posted immediately, it is being reviewed by the moderation team and may appear shortly, generally within an hour.

We aim to have all comments reviewed in a timely manner.

Comments that violate our community guidelines will not be posted.

UPDATED: Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies