L Brand's CEO Les Wexner may think of department stores as being "irrelevant," but Macy's and Bloomingdale's clearly didn't get the memo on the heels of a third quarter where comparable store sales for Macy's Inc. increased 3.5 percent and profits were far ahead of Wall Street expectations. The company has increased earnings per share for 15 consecutive quarters.
"Our improved sales performance resulted from continued success in the execution of our key strategies — My Macy's localization, omni-channel integration and Magic Selling customer engagement. In addition, business in the third quarter benefitted from intensified marketing strategies to emphasize the outstanding value in our merchandise deliveries," said Terry J. Lundgren, chairman, president and chief executive officer of Macy's, Inc., in a statement. "Both Macy's and Bloomingdale's performed well in the quarter, and we saw improvement in the sales trend in every region of the country compared with the spring season."
Wall Street was duly impressed with Macy's results. Shares of the company stock were up more than nine percent in yesterday's trading. The best may be yet to come, however, as Mr. Lundgren shared that business picked up in October, a positive sign heading into the holiday selling season.
"Our success in the fourth quarter will be driven by a wide selection of exclusive products from the most-wanted brands and designers. We will bring them to our customers, whether they shop in our stores, online, via mobile — or all three," said Mr. Lundgren. "The values we offer will be appealing. We will be better able to satisfy customers' needs with an energized organization supported by the hiring of 83,000 seasonal associates. Our in-store and online executions will complement each other, and our marketing will clearly communicate the Magic of Macy's and the exceptional holiday fashion at Bloomingdale's."