Retails Resurgence

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What's going on?

Another miracle on 34th Street and its not even Christmas. On Wednesday, Macys stunned investors with its first-quarter report, growing both sales and profit faster than expected. No discount tags on Macys stock, then it rocketed up by a chic 10%.

What does this mean?

Strong sales over the holiday period provided a rising tide that lifted the boats of all retailers in the US. For Macys, this was the icing on the cake of its turnaround under a new CEO.


Some observers thought Macys would struggle to grow in 2018 after its rockstar 2017 (after all, its still losing market share to a certain company that shares its name with a rainforest) but Macys stores along with Bloomingdales and Bluemercury (which it also owns) all performed well. Quarterly sales at stores that were open a year ago grew by 4% (investors only expected 1% growth) and the companys hiked its profit expectations for 2018 as a result. Pow!

Why should I care?

The bigger picture: Other retailers havent been so lucky.


While the suns shining on Macys, some department stores are stuck under a cloud. Lord & Taylor owned by Americas oldest company has hired advisors to guide it to fairer weather. Theyre probably considering options ranging from shutting stores to an outright sale. Across the pond in the UK, retailers like Poundworld are considering whether to halt bankruptcy plans in favor of a sale. And fashion empire Arcadia owner of Topshop and Miss Selfridge is contending with a 40% slump in its annual profit.



For markets: The Burberry turnaround is on track.


Burberrys another retailer on a quest to refashion its recent chequered fortunes. By the end of 2017, the UK luxury company had installed a new CEO and creative director (which is important because theyre often credited with successful luxury brand turnarounds like at Gucci). Burberrys better-than-expected results on Wednesday sent the stock up by 4%, stoking investors belief in its new approach of focusing on higher-end products and customers.

Originally posted as part of the Finimize daily email.

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