Four major department stores reported Q2 results this week. Dillard’s reported net income of $49.2 million for the quarter, compared to $89.5 million in Q1. While that is a significant drop from quarter to quarter, year over year net sales were close, with $1.427 billion this year compared to $1.452 billion in 2016. Comp store sales were down just 1%. The merchandise mix showed ladies’ apparel increasing slightly, but sales in shoes, cosmetics and home were slightly decreased. Dillard’s CEO, William T. Dillard, stated, “Significant markdowns led to a disappointing loss as we dealt with inventory, which was up 2% at quarter end.”
Macy’s also reported a loss for the quarter, but still topped industry estimates. Macy’s sales totaled $5.55 billion for the quarter, down 5.4% from last year. Same store sales dropped 2.8%. Macy’s has been working on many changes in strategy including new women’s shoe and jewelry models and the rollout of its off-price Backstage format. They are planning to launch a new loyalty program and a new marketing strategy this fall. Macy’s also opened 16 Bluemercury stores and 12 Backstage stores during the second quarter.
Kohl’s also beat industry expectations while still reporting a loss. Net sales declined 1% to $4.14 billion, reporting a 6th straight quarter of decline. Same store sales fell 0.4%. The retailer reported that July transactions were an increase. Kohl’s has been working on expense reductions and inventory management to improve profit margins. It also added new vendor Under Armour that increased its activewear business.
Nordstrom came out ahead, reporting an increase of comp same store sales by 1.7%.
Sources: WSJ, Chain Store Age
Related posts
