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Macy’s Q1 Revenue Slip Not as Steep as Expected

Macy’s same-store sales outperformed competitors JC Penney and Nordstrom in the first quarter, falling just 2.6 percent.

Same-store sales at JC Penney dropped 7.4 percent, while Nordstrom’s declined 6.5 percent in the quarter. Revenue for the company beat analyst estimates, declining 2.9 percent to $5.75 billion, compared with a projection of $5.67 billion, according to Bloomberg.

Though the company posted revenue declines, results were “surprisingly good,” according to David Heupel, a fund manager with Thrivent Financial for Lutherans. Dan Poole, who helps manage $34 billion including Macy’s shares at National City Bank in Cleveland, said, “Given the lousy environment, these numbers are not that bad, so investors like the news.”

Wal-Mart also beat analyst estimates for the first quarter.

The last year for Macy’s was softer than expected, but it still outperformed most of its primary competitors in the crucial fourth quarter. Macy’s CFO said that in May, sales got off to a “very good start,” but that the retail environment will remain challenging until at least the third quarter.

In April, Macy’s announced that it was adopting a localized strategy, with 15 percent of the merchandise in stores to reflect local preferences.

Macy’s became the second-largest department store chain when it acquired May stores in 2005. In 2007, it changed its name from Federated Department Stores Inc. to Macy’s Inc. Currently, the company operates 812 Macy’s stores and 40 Bloomingdale’s.