Macy's eases holiday sales worries
Investors went shopping for Macy's shares Wednesday after the retailer experienced a much less gloomier holiday season than Wall Street had expected. Same-store sales dropped just 0.6% in November and December.
That's two-thirds less than what analysts had estimated. Wall Street had reason for setting its targets low. Back in November, Macy's had cut its annual profit forecast, pointing its finger at weak international tourism and sluggish mall traffic.
The retailer is among the first companies reporting sales for the holiday season, and it's often seen as a barometer for consumer spending.
Investors liked what they heard, driving the company's beleaguered shares up sharply at the market open Wednesday. The stock was rebounding from a nearly 43% plunge over the last 12 months.
Macy CEO Jeff Gennette credited strong online sales and demand for gift products for its better-than-expected results. With consumers spending more money online, traditional retailers are fighting back by building apps with more options for shopping and delivery.
