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Macy's Key Sales Figure Falls For 10th Straight Quarter

Macy's Key Sales Figure Falls For 10th Straight Quarter

Department store operator Macy's Inc M.N joined rival Kohl's Corp KSS.N in reporting a smaller-than-expected decline in quarterly comparable sales.

Macy's, the nation's largest department store chain, said sales fell 2.8 percent at established stores during the second quarter, its tenth such decline in a row. Still, President and CEO Kevin Mansell said foot traffic increased during the quarter.

But Kohl's still has a long way to go to improve business, and its shares fell sharply Thursday - down more than 6% in mid-day trading - against the backdrop of disappointing earnings from other department stores including Macy's and Dillard's. Shares of Dillard's Inc., which Thursday surprised analysts by swinging to a loss, tumbled 13.2% in premarket trade to $63.65. Aside from improving its physical outlets, Macy's has been bolstering its online offering, and has been responding to the rapid growth in mobile shopping.

But the moves haven't been enough to counter weaker demand.

Macy's has said it plans to continue operating out of the Chicago store's lower floors.

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Department stores have also seen margins pressured by promotions, as they look to lure deal-seeking shoppers back.

Executives also told analysts Macy's expects to generate more cash from selling assets, such as real estate, this year than it predicted in February. But the company swung to a loss as it cut prices to help clear bloated inventory. The Cincinnati-based company reported net income of $116 million, or 38 cents per share, in the three months ending July 29.

Macy's Inc reported earnings per share of 48 cents for the second quarter of 2017. The results were better than expected by analysts surveyed by Thomson Reuters who had projected adjusted earnings of 46 cents a share on $5.52 billion in sales.

But Macy's expects full-year earnings in the range of $2.90 to $3.15 per share, below the $3.27 per share that analysts expected, according to FactSet. The company's revenue slipped 0.9%% to $4.14 billion, a tick stronger than the $4.13 billion estimated by Wall Street.