Retail Quarterly Results Revealed: Macy and Nordstrom Unveil New Strategies to Reignite Shopper Interest

Retail Quarterly Results Revealed: Investors will learn if $59.50 pull-on work pants and discounted UGG slippers are bringing back customers to U.S. department stores this week when Macy’s (M.N) and Nordstrom (JWN.N) disclose their quarterly results. Macy’s (M.N) and Nordstrom (JWN.N) will release these data.

On Tuesday, Macy’s will report second-quarter earnings. The shop has been upgrading its private labels, like July’s On 34th, to promote sales. In March, Nordstrom CEO Erik Nordstrom assured investors that 100 “strategic” brands would save its struggling off-price Rack business. The corporation releases its financials on Thursday.

Refinitiv analysts expect Macy’s second-quarter profit to be 87% lower than last year. Big spring and early summer sales to get rid of them may trigger this reduction.

Nordstrom’s second-quarter sales are forecast to drop 11% and earnings 45%.

Many businesses, including Target and Tapestry, which owns Coach, have cut their sales and profit estimates for the year because Americans are spending less on non-essentials like handbags and apparel.

Walmart (WMT.N) and Amazon (AMZN.O) may be stealing market share from Macy’s and Nordstrom in women’s clothes, according to Prosper survey data.

In mid-July, almost 7,800 men and women were asked which retailer they bought women’s apparel at most. Walmart received 13% of responses and Amazon 9%. Compared to Macy’s 5.8% and Nordstrom 3.3%, this is significant.

Deloitte predicted a 14% drop in back-to-school clothing spending for children and young adults in July. A Deloitte study indicated that parents value school supplies like pens and papers more than clothing and technology like computers and iPads.

The quarter that ended on July 30 only provides a partial view of the buying season before the new school year. However, retailer CEOs may advise Wall Street of which styles are selling before the new school year.

Macy’s new private-label line, On 34th, targets 30–50-year-old women. It features trendy items like a $79.50 tulle midi-skirt and a $275 suede leather jacket and inexpensive staples like a $39.50 soft-knit button-down blouse.

At a launch event last month, Macy’s top executives claimed the company wanted “seasonless” knits and linens like fine-gauge sweaters to be worn in layers. This referenced the brand’s “seasonless” styling.

Retail Quarterly Results Revealed

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More than 20 Macy’s brands are its own. Instead of buying them in bulk from other apparel manufactures, the shop makes and has its suppliers make these labels.

In 2022, private labels made for 16% of Macy’s sales. The business thinks that focusing on more flexible items would help it avoid having to give significant discounts on spring and summer goods that haven’t sold, which will impact profitability. Macy’s own-brand sales were 16% in 2022.

Kathy Gersch, a retail specialist with Kotter International, says a store makes more money selling its own labels than buying in bulk from third-party garment makers. However, stores can offset greater profit margins by investing more in new products and promotion.

“They have to make them more interesting than other mass-market clothes to draw people in for those brands,” she said. “If they want to sell lots, they must make them more interesting than other mass-market clothes.”

Nordstrom hasn’t said which brands and categories will be prioritized when reviving the Rack. However, officials have assured investors that the company will provide more products by mid-2023. The Rack website featured Kate Spade, Adidas, Steve Madden, and Cole Haan ads on Monday.

After failing to bring in more low-priced items, Nordstrom reorganized their inventories. This was done to prevent people from shopping at Rack stores for Nordstrom-branded apparel and accessories.

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Our Reader’s Queries

At what time quarterly reports come out?

Investors and analysts eagerly await the release of quarterly results, which provide a snapshot of a company’s financial health at the end of each quarter. These reports play a crucial role in determining how well a business is performing and are a key factor in investment and analysis decisions.

What is the current retail sales report?

The latest data for US Retail Sales (I:USRS) shows a current level of 611.00B, which is a slight increase from 610.56B in the previous month and a 3.06% rise from 592.84B a year ago. This represents a 0.07% change from last month. US Retail Sales measures the total sales in the US economy, not including food services.

How do I find a company’s quarterly report?

Explore the SEC’s EDGAR database on to find detailed information on a company’s financial filings, including their earnings reports.

How do you read quarterly results?

Here’s how to understand quarterly results: Gross sales are the total sales within a specific time. Net sales are the total sales minus discounts, returns, and allowances. Operating income is the profit from the company’s core business activities. Margins and interest cost are also important to look at. Net profit is the overall profit. EPS (Earnings Per Share) shows how much profit each share is making.