Demand wavers: While Macy’s noted weakening demand for activewear as one of the reasons for lower profits, Dick’s Sporting Goods sees its products as a necessity for shoppers across the income spectrum.
- Dick’s Sporting Goods’ executive chairman Ed Stack told CNBC that he sees demand for the retailer’s assortment in the “highs and lows of the economy,” noting that parents have to buy shoes for their children regardless of financial circumstances.
- Despite the pressures in some categories, Macy’s said sales of occasion-based categories and luggage grew significantly, while its premium Bloomingdale’s and Bluemercury subsidiaries turned strong demand for luxury goods into robust sales growth.
Looking ahead: While Dick’s Sporting Goods is more optimistic about its future performance than Macy’s, it still anticipates a decline in sales for the rest of the year—albeit a slightly smaller fall than it initially forecast.
Macy’s faces more challenging headwinds: With shoppers spending less on discretionary goods and turning to cheaper retailers, its inventory—and profit—troubles may well continue through the holiday season and beyond.
This article originally appeared in Insider Intelligence's Retail & Ecommerce Briefing—a daily recap of top stories reshaping the retail industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.