Holiday Department Store Favorite Suffers Massive 3rd Quarter Losses. Macy’s Inc. remains financially healthy.
Wired PR News.com – Macy’s, a department store favorite for holiday shoppers, reported third quarter losses on Wednesday to the tune of $44 million. As reported on Time.com, the retailer saw a seven percent decrease in sales with less hopeful expectations for a highly profitable immediate future. Announcements were also made regarding the store’s budget cuts for the upcoming year. Macy’s will reportedly cut capital costs for 2009 by nearly half to approximately $600 billion.
Macy’s CFO, Karen Hoguet, was quoted as describing the upcoming holiday season as something that “will be a nailbiter.”
Despite the losses and outlook for lower numbers for profits in the upcoming months, the department store chain continues to boast strong financial stability. Terry J. Lundgren, Chairman and Chief Executive, commented, “Macy’s Inc. remains financially healthy, with strong cash flow, a solid balance sheet and ample borrowing capacity.”
Macy is now an exclusive retailer for Tommy Hilfiger U.S.A. clothing, and has partnered with toy retail giant FAO Swartz.
Photo Credit: Daniel Schwen