Despite inflation, Macy's Bloomingdale's and Bluemercury seeing growth

video

FOX Business Flash top headlines for August 24

Check out what’s clicking on FoxBusiness.com.

Even though Macy's took a hit, cutting its annual outlook for profit and sales as it tries to deal with excess unsold inventory, its higher-end stores are still seeing "robust" business.

Bluemercury and Bloomingdale's, both company-owned stores, saw sales at stores open for at least a year grow. 

"We're seeing our most affluent customers continue to spend at very strong levels," CEO Jeff Gennette told analysts during Macy's earnings call Wednesday about its Bloomingdale's locations. "We have not seen trade-down at Bloomingdale's either and their business continues to be quite robust." 

TickerSecurityLastChangeChange %
MMACY’S INC.18.65-0.66-3.39%

Same-store sales at Bloomingdale's – where medium household income is more typically $250,000 and above – has continued at a healthy pace, rising 8.8% during the quarter. 

Same-store sales for Bluemercury were up 7.6%, which was driven by “continued strength in color and skin care.” (Google Earth)

Meanwhile, same-store sales for Bluemercury, the seller of cosmetics, were up 7.6%, which was driven by "continued strength in color and skin care," the chief executive said. 

Bluemercury's active customer count also increased 9% compared to the same time a year ago and Bloomingdale's active customers increased 14%, the company announced. 

MACY'S CUTS FULL-YEAR FORECASTS AS INFLATION HITS DEPARTMENT STORE SPENDING

Bloomingdale’s department store in the SoHo neighborhood of New York, Oct. 24, 2021. (Nina Westervelt/Bloomberg via Getty Images / Getty Images)

As for the overall business, Macy's stores had lackluster sales throughout the second fiscal quarter as "Macy's brand customers across all income tiers slowed and shifted their spend," Gennette explained.

Macy’s

At Macy’s, customers at every strata with household income below $250,000 are cutting back proportionately, Gennette said. 

KOHL'S CUTS ANNUAL FORECASTS AS INFLATION SQUEEZES DEMAND

Bloomingdale’s signage in the SoHo neighborhood of New York, Oct. 24, 2021. (Nina Westervelt/Bloomberg via Getty Images / Getty Images)

CLICK HERE TO READ MORE ON FOX BUSINESS

However, with inflation sitting at near 40-year highs it's tough to know how Americans will react during the holiday season, which is seen as one of the most pivotal times for retailers. 

Source: Read Full Article