Macy’s delivered a mixed bag of results on Thursday, although the department store chain reaffirmed its full-year outlook as of which heads into the all-important holiday shopping season.
“When you think about the amount of sales as well as profit within the fourth quarter … I think we are where we need to be,” Chief Executive Jeff Gennette told CNBC. “The fourth quarter will be where we actually shine.”
Though its same-store sales continue to fall, the Ohio-based department store chain will be trying to turn things around, with efforts focused on expanding Macy’s off-cost nameplate — Macy’s Backstage — as well as revamping the retailer’s loyalty program.
The refreshed loyalty program, Star Rewards, launched Oct. 2. Macy’s will be hoping the offering will draw more shoppers through its doors.
Thus far, feedback on Star Rewards will be “overwhelmingly positive,” Gennette said. “Shoppers love free shipping as well as no exclusions on Star Rewards … [as well as] we believe of which will build within the fourth quarter.”
Macy’s store traffic was “softer” in August, Gennette said, although increased by October, “which will be Great, walking into the fourth quarter.” A warmer-than-usual fall has hurt a slew of retailers This specific season, including Kohl’s, with shoppers ringing up fewer coat purchases.
“When I think about the fourth quarter, we need [the] right products at the right values, as well as convenience for shoppers,” Gennette said. “We are better This specific year than last year, particularly with fulfillment.”
The holiday season, for Macy’s, actually kicks off with its annual Thanksgiving Day parade. The retailer could use a strong finish to the year.
Macy’s shares are down more than 50 percent in 2017.