Page 24 - ARUBA TODAY

Friday 11 august 2017 BUSINESS
A24

Except Nordstrom, US wholesale

Department stores report seeing sales metric drop prices down by
0.1% for July

By JOSEPH PISANI gross margins are “still very By MARTIN CRUTSINGER
AP Business Writer weak.” At Kohl’s, they saw AP Economics Writer
NEW YORK (AP) — It’s still a “better than expected” WASHINGTON (AP) — Pric-
pretty rough time to be a sales and hints that the es at the wholesale level
department store. back-to-school season had slipped in July, the first
Macy’s, Kohl’s and Dillard’s started well. decline in 11 months and
all said Thursday that a key Department stores are “just further evidence that infla-
sales figure fell again in the not as relevant as they tion remains a no-show in
latest quarter as customers once were,” said Neil Saun- the economy. The Labor
increasingly shop online, at ders at GlobalData. Department said Thursday
discount stores and else- Nordstrom, though its sec- that its producer price in-
where. Nordstrom, the out- ond-quarter profit declined dex, which measures in-
lier, saw those sales rise 1.7 6 percent, lifted the lower flation pressures before
percent overall and even end of its outlook, and its they reach the consumer,
more at its discount Nord- shares rose 3 percent in ex- edged down 0.1 percent
strom Rack unit. tended trading. The com- last month, reflecting a
At Macy’s the decrease pany credited its anniver- third month of declines in
wasn’t as bad as Wall Street sary sale, which took place energy prices and a flat
expected, and Kohl’s man- during the quarter, and reading for food. The July
aged to keep the decline said its own labels did well result followed a tiny 0.1
to just 0.4 percent. But during the sale. But Nord- percent gain in June. Core
Macy’s Inc. shares fell 10 strom said that excluding inflation, which excludes
percent, Kohl’s Corp. fell the anniversary sale, the volatile food and energy
nearly 6 percent and Dil- retailer’s sales were consis- costs, also fell last month
lard’s Inc. dropped almost tent with recent trends by 0.1 percent. Over the
16 percent after reporting Macy’s had warned inves- past 12 months, wholesale
a loss of $17.1 million. tors in June that its profit prices are up a moderate
Macy’s has cut jobs and A shopper carries a bag as she walks in the parking lot of a margins would keep shrink- 1.9 percent, while core
closed some stores, has shopping mall in Hialeah, Fla. Macy’s Inc. reported earnings, ing this year. For the quar- prices have risen 1.8 per-
started an off-price brand, Thursday, Aug. 10, 2017. ter ending July 29, the Cin- cent. Inflation has been
and it plans to launch a (AP Photo/Alan Diaz) cinnati-based company low throughout this recov-
loyalty program in Octo- a long absence — an area foot traffic increased dur- reported net income of ery. For the past five years,
ber that it hopes will bring that had been a remaining ing the quarter. Dillard’s $116 million, or 38 cents per it has fallen below the
more shoppers through source of strength for Sears. said its sales fell 1 percent share. That’s up from $11 Federal Reserve’s target
its doors. The company is Macy’s, the nation’s largest at established stores. million, or 3 cents per share, for annual price gains of 2
open to more changes: department store chain, At Seattle-based Nord- a year before. percent a year. At the be-
When asked Thursday if said sales fell 2.8 percent strom, the flagship Nord- Adjusted earnings came ginning of this year, infla-
Macy’s would consider sell- at established stores dur- strom unit, which includes to 48 cents per share, while tion by a gauge preferred
ing medicine, appliances ing the second quarter, its online clothing concierge revenue fell 5 percent to by the Fed did climb as
or other items to make it tenth such decline in a row. Trunk Club, reported a 1.4 $5.55 billion. Both those high as 2.2 percent gain in
more of a one-stop shop, But that was better than percent increase in sales at figures beat expectations, February compared to a
CEO Jeff Gennette didn’t the 3.3 percent drop that established stores. The Nor- according to Zacks. year ago. But it has since
say no. “Macy’s is a very analysts expected, ac- dstrom Rack unit reported a For the full year, Macy’s ex- backtracked and in June
flexible brand,” he said. cording to FactSet. Kohl’s 3.1 percent improvement. pects earnings of $2.90 to registered a 12-month gain
Rival J.C Penney, which is saw same-store-sales fell Analysts at Citi said the re- $3.15 per share, below the of just 1.4 percent. The
scheduled to report results 0.4 percent during the sults from Macy’s were “less $3.27 per share that ana- Fed raised interest rates
Friday, has brought major quarter. Still, President and bad,” but they added that lysts expected, according in March and June, but
appliances to its stores after CEO Kevin Mansell said the company’s sales and to FactSet.q economists believe it will
put further rate hikes on
hold until at least Decem-
Uber woes: Exec resigns, investor sues ousted CEO ber, waiting to see if infla-
tion resumes rising again
to the 2 percent target.
By DEE-ANN DURBIN That board — and its sup- customers. trade secrets from Waymo, Fed Chair Janet Yellen told
AP Auto Writer port for former CEO Travis A spokesperson for Ka- Google’s self-driving car Congress last month that
DETROIT (AP) — Uber Tech- Kalanick — was the subject lanick said the lawsuit is unit. Waymo sued Uber she believes tight labor
nologies Inc. faced a fresh of a lawsuit filed Thursday in “completely without merit earlier this year. markets will start produc-
round of turmoil Thursday, Delaware Chancery Court and riddled with lies and The lawsuit also says Ka- ing higher wage gains and
with its global operations by Benchmark Capital false allegations.” lanick didn’t discuss his increased inflation. Unem-
chief resigning and a ma- Partners. In the lawsuit, Benchmark failure to curb Uber’s per- ployment in July returned
jor investor suing the ride- Benchmark is a major in- claims Kalanick concealed vasive culture of discrimi- to a 16-year low of 4.3 per-
hailing company’s former vestor with 13 percent of material information from nation and sexual harass- cent. which followed even
CEO. Uber’s stock. It claims Ka- investors when he created ment. bigger declines in May and
Ryan Graves told Uber staff lanick is trying to pack three new board seats in Kalanick resigned under June. Last month, the gaso-
in an email Thursday that Uber’s board with his allies 2016 and gave himself the pressure in June after a line, natural gas and home
he will transition out of his and eventually return to his right to appoint people to monthslong investigation heating oil all showed de-
role as senior vice president post as CEO. The venture those seats. Among other into harassment and other clines.
of global operations in mid- capital firm says that would things, Benchmark said, behavior problems at the Food costs showed no gain
September. Graves will re- harm Uber’s shareholders, Kalanick knew Uber might San Francisco-based com- in July after rising by 0.6
main on Uber’s board. employees, drivers and be accused of stealing pany. q percent in June.q