Apparel Online Bangladesh Magazine February Issue 2019 | Page 77

RETAIL CURRENT
Holiday season does no good to Macy's as its
shares drop by over 18 per cent
Stocks of Macy’s dropped down
more than 18 per cent after the
company reported weak holiday
sales and cut its 2018 earnings
outlook.
“The departmental store chain
started strong during Black
Friday weekend but did not
return to expected patterns
until the week of Christmas,”
CEO Jeff Gennette said in a
statement released before the
markets opened. In November
and December, sales at stores
operating for at least a year –
including online sales – climbed
1.1 per cent.
The disappointing report set off
broader alarms across the retail
industry as Target, Kohl’s and
L Brands also reported their
poor holiday sales. Macy’s stock
fell as low as US $ 25.50, down
by US $ 6.22. It was the biggest
loser recently on the New York
Stock Exchange.
The store chain now expects
earnings per share to range
between US $ 3.95 to US $ 4.00,
down from the previous range of
US $ 4.10 to US $ 4.30. It also said
that its gross profit margin will
shrink, rather than grow. Macy’s
said that it expects no growth in
net sales instead of its previous
projection of an increase from 0.3
to 0.7 per cent.
“The weak holiday performance
now raises a big question mark
over Macy’s recovery strategy.
This had been gaining traction,
but it has been let down by
Macy’s inability to get the basics
of retail right across all parts
of its business. These numbers
underline the fact that it needs to
work harder at creating a much
more compelling and engaging
retail experience in 2019 and
beyond,” said Neil Saunders,
Managing Director, GlobalData
Retail.
The recent drop in profits
also led to Bank of America
downgrading Macy’s stock,
predicting that the company
will continue to see profits drop
unless it dramatically boosts
sales. The bank changed its
rating for the stock from ‘neutral’
to ‘underperform’, it said in a
report.
Meanwhile, Macy’s is closing
eight stores in early 2019 as part
of its planned closures that were
announced over two years ago.
Nordstrom enhances fashion experience for men
with Concept 001
Retail powerhouse Nordstrom
has introduced a new fashion
experience for men. The initiative
New Concepts will provide
a platform to customers for
discovering the latest and best
products in menswear. Bear and Mackintosh, technical
footwear from Hoka One One and
Salomon, and a range of outdoor
gear from Hydro Flask and
Leatherman. Its other footwear
brands include Deimme, Aigle, New
Balance and Blundstone.
The concept directed by Vice
President Sam Lobban will feature
physical and digital pop-up shops in
partnership with the world’s most
compelling brands. The US-based fashion retailer was
founded in 1901 as a shoe store in
Seattle. Nordstrom now operates
379 stores in 40 states, including
121 full-line stores in the US,
Canada and Puerto Rico.
New Concepts kicks off with
Concept 001: Out Cold, a curated
collection of the world’s 20 most
compelling brands for ski, snow,
rain and technical gear dedicated
to inclement weather. With New Concepts, Lobban
expands and elevates the men’s
offering, providing Nordstrom
men’s customers access to a
variety of international and limited
distribution brands to discover.
Out Cold will come to life with a
digital shop on Nordstrom.com in
March. The merchandise on
offer will feature the most advanced
ski and outdoor apparel from
brands like Arc’teryx Veilance,
KJUS and Snow Peak, the ultimate
urban winter armor from Golden
www.apparelresources.com | FEBRUARY 2019 | Apparel Online Bangladesh
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