Macy's net sales declined 5.2 percent during the third quarter as customers cut back on spending and a strong dollar deters tourists. Shartia Brantley reports.
Macy's earnings disappoint. The retailer reported lower than expected quarterly net sales as American consumers scaled back their shopping and a strong dollar discouraged tourists from spending. Macy's beat on earnings, but sales fell 5.2 percent to $5.87 billion. Analysts polled by Reuters were expecting revenue of $6.09 billion. This marked the third straight quarterly decline. Macy's Chairman and CEO Terry Lundgren hopes to reverse this trend. "Heading into the fourth quarter, we are shifting our organization into overdrive to focus on sales-driving activities in the holiday shopping season, when Macy`s and Bloomingdale's shine as destinations for gift-giving and self-purchase." In a separate announcement, Macy's and Luxottica Group announced an agreement to open licensed LensCrafters departments in as many as 500 Macy's stores. Macy's shares were down in early trading. Its rival J.C. Penney reported third quarter same store sales beat expectations and that it settled a class action lawsuit which alleged false advertising. Shares of J.C. Penney surged in early trading.