Macy’s (NYSE: M) dropped sharply after announcing second-quarter results before Wednesday’s opening bell.
For the second quarter, the Cincinnati-based company achieved earnings per diluted share of $0.53, or $0.70 excluding impairment and other costs, settlement charges and losses on the early retirement of debt.
This compares to $0.36 per share in the second quarter of 2017, or $0.46 excluding settlement charges and gains on the early retirement of debt.
When also excluding asset sale gains, earnings per diluted share were $0.59 in the second quarter of 2018, compared to $0.37 per share in the second quarter of 2017.
These days, the department store sector is viewed to be one of the most threatened by Amazon (NASDAQ: AMZN) today, as shoppers increasingly opt to ring up purchases online while foot traffic dwindles at shopping malls.
Brands like Nike (NYSE: NKE) and Vans owner VF Corp. (NYSE: VFC) are also moving more of their operations away from wholesale partners and prefer to sell more directly to consumers.
In turn, Macy's has been looking for ways to keep its stores and assortment of inventory relevant. The department store chain recently acquired New York-based concept shop Story and bringing on its founder, Rachel Shechtman, to become "brand experience officer."
Hoping to improve customers' in-store experience, Macy's is in the midst of rolling out mobile checkout to all of its locations by year-end and is adding virtual reality shopping to some stores.
Macy's shares are up nearly 95% from a year ago, bringing the retailer's market cap to $12.3 billion. The shares opened Wednesday down $3.86, or 9.2%, to $37.96
