Macy's Disappoints: Is This the New Retail Reality?

REPLAY VIDEO
Your next video will start in
Pause

Recommended Videos

  • Info

  • Comments

  • VIDEO TEXT

Aug. 13 (Bloomberg) -- Macy’s posted earnings that trailed analysts’ estimates after discounts meant to lure shoppers eroded profit margins. “Bargain Fever” Author Mark Ellwood speaks on “In The Loop.” (Source: Bloomberg)

Initially the company said they were confirming their forecast, that is not the case for comp sales.

They say they will rise 1.5% to 2%. this is on top of a quarter where earnings disappointed.

They might've gotten the traffic and sales, but they had to cut profits to get it.

Margins did increase.

It is still higher than competitors, but it still illustrates the hunger for the bargain that you were talking about.

Right.

Mark, i have to say -- none of us have a position here at macy's, but our production team has gone -- was talking this morning, and to what he has gone into a macy's and has been impressed by the stores at all.

I have been impressed with the service.

I was in with a visitor from england.

You bring someone to a macy's, and it is a tourist site.

We were shopping.

We got to $80. we were looking at the salesgirl, and she said you are nice, you could probably spend $100, i will give you the discount.

I think the stores do need a little bit of work, but i think we need to not beat macy's up that much.

Ok, who can we beat up?

Epic we can beat up old jcpenney and love new jcpenney.

I think poor target is going to be one of those companies we watch from a distance and feel uncomfortable for, but watching a reality show when people behave badly.

I want to rise -- watch the train wreck.

I sharp that target because it's nearby.

I am rooting for target.

It used to be edgy.

We were talking about how target has lost its edge.

Right, and it has to be claimed that because it did have the upper tier of the discount market and has lost a lot of its cachet.

I would say that i think macy's has taken some of that cachet because macy's has done some of its own brilliant own label brands.

They have celebrity designers, not just from the fashion world, but justin bieber, donald trump -- it seems like the collaboration is no longer with just the fashion world.

Couldn't just be a major decline among retailers in general?

I was mentioning -- i was mentioning kate spade.

The stock went down 25% because the forecast was going to be so low.

Again, i'm a big fan of kate spade.

You rolled your eyes at me.

[laughter] look at how the brand is positioned.

The comeback story of kate spade is a story.

It was a hot brand in the 1990's that no one would touch, and suddenly it is cool again.

We need to take a deep breath and get kate spade room.

That incredible growth, it is unsustainable, and it should be.

I do not know if you can extrapolate kate spade to the rest of the kelp.

Using his phenomenal course where rapid growth is slowing

This text has been automatically generated. It may not be 100% accurate.

Advertisement

BTV Channel Finder

Channel_finder_loader

ZIP is required for U.S. locations

Bloomberg Television in   change