Macy's June Sales Below Expectations
CINCINNATI-Macy's sales inched up slightly in June yet fell below the company's expectations, Macy's said this morning.
Total sales were $2.412 billion for the five weeks ended June 30, an increase of 0.8 percent compared with total sales of $2.392 billion in the prior-year period. Same-store sales, which include online sales, were up 1.2 percent in June 2012 as compared to June 2011.
"June sales were below expectations," said Terry J. Lundgren, chairman, president and CEO. "In part, this was a function of a macroeconomic environment that is stagnant at best, and lower spending by tourists in cities such as New York. Additionally, the unprecedented renovation at Macy's Herald Square in New York City, the world's largest store, is well under way but created more short-term business disruption than anticipated in the June sales period."
Bright spots in June, according to Lundgren, included strong Father's Day sales, and results from Macy's nationwide promotion of Brazil-inspired fashion.
"We continue to believe firmly in our key strategies for the ongoing growth in our business," Lundgren said. "And given our healthy cash flow, we expect to buy back at least $1 billion in shares this year."