New York – Trending trends at Macy’s will be great news for vendors – if those vendors happen to be selling dress apparel.
For those in the home textiles business, Macy’s hot streak at home is over. The first quarter saw an acceleration in the abandonment of three popular pandemic categories in particular – casual wear, activewear and soft home – as consumers shifted to second-hand clothes.
Previously hot categories downgraded 20 points in the short time of the 4and quarter to 1st quarter, a change that Macy’s Inc. Chairman and CEO Jeff Gennette described as “more extreme than expected.” Inventories are overbuilt both due to rapidly changing consumer spending, but also because loosening supply chain constraints have resulted in a higher-than-expected revenue percentage.
“We have adjusted all our future orders. We don’t think it’s going to get any better,” he told investors on this morning’s first quarter review call.
That said, overall Macy’s Inc. business was strong for Macy’s, Bloomingdale’s and discounted Macy’s Backstage nameplates.
Compensation at Macy’s/Backstage jumped 10.7% on an owned basis and 10.1% on an owned plus license basis. Bloomingdale’s comparable sales on an owned basis increased 28.1% and on an owned plus license basis, 26.9%.
The company’s digital growth slowed to 2% from the first quarter of last year, but increased by 44% from the first quarter of 2019. Traffic on Macy’s.com increased by 20% for the trimester.
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