(Adds details, Kohl's results, updates shares)
May 11 Department store operator Macy's Inc
reported a lower-than-expected quarterly profit, as sales
continued to tumble and as higher inventory weighed on margins,
and the company's shares dropped 9 percent in premarket trading
Sales at Macy's stores open at least a year, including sales
in departments licensed to third parties, fell 4.6 percent in
the first quarter.
That was steeper than the 3.5 percent drop expected by
analysts polled by research firm Consensus Metrix.
Macy's merchandise inventories were up 4.2 percent in the
quarter, pressuring margins.
In contrast, a leaner inventory and lower costs helped rival
Kohl's Corp report a better-than-expected quarterly
profit earlier on Thursday.
However, Kohl's shares were also down 2.6 percent in
premarket trading, as its sales and comparable-store sales also
fell more than expected.
Kohl's, Macy's and rivals such as J.C. Penney Co Inc
are struggling with declining mall traffic and tough online
competition, and are trying to cope by cutting costs through
store closures, selling or leasing their real estate and keeping
inventory levels low.
Net income attributable to Macy's shareholders fell to $71
million, or 23 cents per share, in the quarter ended April 29,
from $116 million, or 37 cents per share, a year earlier.
Excluding items, the company earned 24 cents per share, well
below the 35 cents analysts on average had expected, according
to Thomson Reuters I/B/E/S.
Net sales fell 7.5 percent to $5.34 billion, falling for the
ninth straight quarter and missing the average analyst estimate
of $5.47 billion.
(Reporting by Sruthi Ramakrishnan in Bengaluru; Editing by