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What's going on?
American retailer Macys reported second-quarter earnings on Wednesday that knocked the socks off expectations, after a stellar first quarter and kickass 2017.
What does this mean?
The presenter of the worlds largest parade (November 22nd, mark your diary) posted profit that was 37% higher than expected and raised its forecast for the rest of the year. Macys also surprised and delighted with a boost in its same-store sales (i.e. sales from stores that have been open at least a year) they grew when they were expected to drop.
Macys moved its friends and family discount day (where it rakes in the cash) to the first quarter of 2018, which boosted its results then. Its typically in the second, so some analysts expected its absence to affect the companys results but Macys did just fine anyway.
Why should I care?
For markets: Macys stock got discounted.
Despite Macys excellent results, its stock fell by more than 10% on Wednesday. Maybe its doing too well (tweet this): Macys shares have doubled over the last year, which may have led some investors to profit take and sell some of their Macys stock to lock in a positive return on their investment. Others cited concerns about the company still losing to Amazon in certain areas potentially leading to Macys costs rising faster than sales in the future as it battles to win customers back into its stores.
The bigger picture: Maybe theres room for everybody.
Amazons the boogeyman for traditional retailers, with an ever-growing product range and (price) slashing to rival Norman Bates. But US retailers have been standing their ground retails on the up this year and sales increased strongly in July (jumping at clothing stores specifically). More American retailers are due to report second-quarter results on Thursday which will cement or crumble (or \_(?)_/ at) retails resurgence. In a fit and healthy economy (#goals), there may be space for the Amazons and Macys of the world to coexist, each serving their customers in peace.
Originally posted as part of the Finimize daily email.
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