In another sign of an improving economy, Macy’s reported on Wednesday that profits in the third quarter far exceeded analyst’s expectations.
Most experts had projected a 39-cent jump in Macy’s profits, but instead the retailer reported an increase of 47 cents per share. That’s a 31% jump from profits in the third quarter of 2012.
“We were able to achieve a very successful third quarter of 2013, despite the tepid economic climate,” said Terry J. Lundgren, chairman, president and CEO of Macy’s, according to USA Today.
In terms of dollars, the retailer reported a staggering $6.28 billion in revenue for the third quarter, beating Wall Street expert projections of $6.19 billion and increasing year-over-year sales by 3.5%.
For prospective business administration students, this is good news, particularly for those looking to manage in a retail environment. Macy’s is one of the country’s largest retailers, and retail sales make up 70% of the American economy.
Lundgren, according to USA Today, went beyond the current numbers and projected a very healthy holiday shopping season for Macy’s. Previous reports have indicated the retailer is starting sales early and will open stores on Thanksgiving Day, partly in an attempt to combat a shortened shopping season because of the late Thanksgiving holiday.
Lundgren said the company plans to hire 83,000 seasonal workers.
In a press release, Lundgren predicted a strong fourth quarter. The company has had 15 consecutive quarters of strong earnings. “We are entering the fourth quarter with confidence. We have curated an outstanding offering of the best gifts, fashion, value and service for our customers throughout the holiday season,” Lundgren said in the release.
“Our success in the fourth quarter will be driven by a wide selection of exclusive products from the most-wanted brands and designers. We will bring them to our customers, whether they shop in our stores, online, via mobile – or all three.”
For 2013, Macy’s has earned $18.729 billion, a 2.1% increase over the first 39 weeks of 2012.
The National Retail Federation expects shoppers to spend almost 4% more than they did in 2012, but retailers are still pulling out all the stops to ensure solid sales. Macy’s is one of many big retailers that will open doors on Thanksgiving Day – something that used to be considered unthinkable.
Those retailers include Walmart, Target, Best Buy, Sears, Macy’s, Kohl’s, J.C. Penney, The Gap and Old Navy.
