SourcingAug 01, 2025
Gemfields’ Auction Revenue Drops 50% in H1The nearly six-month pause of operations at its Kagem emerald mine earlier this year impacted the miner’s first-half results.
MajorsMar 03, 2016
Retail roundup: Emphasis remains on off-price
Third quarter sales disappointed for Macy’s and Nordstrom, both of which continue to emphasize their outlet channel over full-price stores.
Both Macy's and Nordstrom reported disappointing results for the third quarter, and moving forward the two will focus on their off-price divisions, Backstage and Nordstrom Rack, pictured here.
New York--The third quarter was a rough one for U.S. department stores.
Both Macy’s and Nordstrom recorded disappointing results and lowered revenue, earnings and same-store sales projections for the year. Going forward, both chains are putting their money behind the outlet store segment of their business.
Off-price retailer Kohl’s recorded only a 1-percent increase in same-store sales due to a weak September and warm temperatures cutting into seasonal purchases, while J.C. Penney outperformed them all.
The Plano, Texas-based retailer recorded the strongest increase in same-store sales among the four chains and, though it cut its losses, the company still isn’t turning a profit.
Highlights from each retailer’s third quarter earnings reports are below.
Macy’s Inc.
Macy’s Chairman and CEO Terry Lundgren said he was “disappointed” with the company’s third quarter performance. He described spending by U.S. consumers as “tepid” and said international customers remain reticent to spend as well.
Same-store sales fell 4 percent year-over-year in the period ended Oct. 31. Total sales reached $5.87 billion, down 5 percent from $6.20 billion in the third quarter last year.
Gross margin improved slightly, from 39.2 percent to 39.8 percent. Net income fell from $217 million to $117 million.
In the third quarter, the retailer opened only one new full-price Macy’s store, in Ponce, Puerto Rico, but rolled out five of its new off-price Macy’s Backstage stores, which just debuted this fall. In the fourth quarter, one full-price Bloomingdale’s store is slated to open, in Honolulu, along with three Bloomingdale’s Outlets and another Backstage store.
Its emphasis on the off-price channel will continue.
Macy’s announced along with its third quarter earnings that it will open about 50 Backstage stores in off-mall locations over the next two years, and in spring 2016, will open up to 10 Backstage stores within existing Macy’s stores, creating a “new hybrid store” that Macy’s said is the first of its kind in retail.
Nordstrom Inc.
Nordstrom’s third quarter performance was below expectations, the company said.
Same store sales for the period ended Oct. 31 increased less than 1 percent year-over-year. Net sales were up 7 percent from $3.04 billion to $3.24 billion.
Markdowns and higher occupancy costs, accrued as the company opened more stores, particularly off-price stores, ate into gross profit. Gross profit totaled $1.01 billion, or 33.9 percent of net sales, compared with 35.5 percent of net sales in the third quarter 2014.
The company’s best-performing product category was cosmetics while its top business segment was off-price, particularly online.
Net sales for NordstromRack.com and HauteLook, its members-only flash-sale website, were up 39 percent year-over-year in the period, “continuing to outperform expectations,” the company said. Nordstrom Rack saw net sales increase 8 percent while same-store sales were down 2 percent.
By comparison, net and same store sales fell 2 percent for full-price Nordstrom stores.
Like Macy’s, Nordstrom’s emphasis is on its off-price business. The company opened five times as many Nordstrom Rack stores (16) in the quarter as it did full-price stores (three.) Nordstrom also opened its first store outside the United States in the quarter, in Vancouver, British Columbia.
J.C. Penney Company Inc.
Same-store sales increased 6 percent for J.C. Penney in the third quarter ended Oct. 31 while total sales rose 5 percent to $2.9 billion.
Though the retailer has reported strong fine jewelry sales in recent quarters, jewelry was not listed among its top sellers for the third quarter. J.C. Penney said that men’s, home, footwear, handbags and Sephora were its top-performing divisions.
Improvements in the clearance and promotional selling margins, along with improvement in supply chain productivity, helped to boost gross margin from 36.6 percent to 37.3 percent.
Losses shrunk from $188 million to $137 million.
Commenting on the results, new CEO Marvin Ellison said, “The continuation of our strong sales performance this quarter demonstrates ongoing progress toward achieving the company’s long-term financial targets … As we look ahead to the fourth quarter, we are well positioned to compete effectively during the key holiday shopping period thanks to the hard work and dedication of all our associates.”
Kohl’s Corp.
Same-store sales were up 1 percent year-over-year in the third quarter ended Oct. 31 for off-price retailer Kohl’s.
Total sales also increased 1 percent, rising from $4.37 billion to $4.42 billion.
Gross margin held steady at 37 percent. Reported net income fell from $142 million to $120 million.
Kohl’s ended the quarter with only a few more stores than it had at this time last year--1,166 compared with 1,163.
Chairman, CEO and President Kevin Mansell said that the company had strong back-to-school sales and did well in late October, but those gains were offset by a slow September and weakness in seasonal businesses.
More on Majors
The Latest
CollectionsAug 01, 2025
Piece of the Week: Hernsdorf’s ‘Tears of Aphrodite’ NecklaceThe necklace uses spinel drops to immortalize the moment Aphrodite’s tears mixed with her lover Adonis’ blood after he was fatally wounded.
SourcingJul 31, 2025
De Beers Records $189M First-Half Loss The diamond miner and marketer warned last week that it expected to be in the red after significantly cutting prices in Q2.
Brought to you by
Taking the Moment Head On: How Rio Grande Champions the Present & Future of Fine JewelryAs a leading global jewelry supplier, Rio Grande is rapidly expanding and developing new solutions to meet the needs of jewelers worldwide.
Events & AwardsJul 31, 2025
These Are the 2025 CASE Award WinnersJewelers of America’s 35th annual design contest recognized creativity, artistry, style, and excellence.
Weekly QuizJul 31, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
IndependentsJul 31, 2025
Matthew Tratner Takes Over as CBG President Tratner succeeds Andie Weinman, who will begin stepping back from the buying group’s day-to-day operations.
Policies & IssuesJul 30, 2025
Tariff on India Will Be 25%, Trump Says The president made the announcement via Truth Social Wednesday, adding that India also will face a penalty for its dealings with Russia.
Brought to you by
Investing in the Next Generation of Bench JewelersThe Seymour & Evelyn Holtzman Bench Scholarship from Jewelers of America returns for a second year.
FinancialsJul 30, 2025
Kering's Jewelry Brands Resilient As H1 Sales Slide 16%The luxury titan’s star brand Gucci continued to struggle amid a "tough" environment.
WatchesJul 30, 2025
Peek Inside Zadok Jewelers’ New Rolex Showroom in AustinIts opening marks the completion of the retailer’s new 11,000-square-foot store in the Texas capital.
SurveysJul 30, 2025
Consumer Confidence Ticks Up in JulyRespondents shared concerns about tariffs and commentary on the “Big Beautiful Bill.”
SourcingJul 30, 2025
Rob Bates to Release Latest Book in His ‘Diamond District Mystery’ Series“Making a Killing in Diamonds” tells the story of Mimi Rosen, the disappearance of a scientist, and the murder of lab-grown diamond CEO.
EditorsJul 29, 2025
Out & About: Visiting Tacori’s Design Studio in LASenior Editor Lenore Fedow learned a lot when she took a behind-the-scenes factory tour with the jewelry brand earlier this year.
Events & AwardsJul 29, 2025
Melee The Show Welcomes 15 New DesignersThe first-time exhibitors, set to debut at the New York City show, share a devotion to craftsmanship, storytelling, and material integrity.
SourcingJul 29, 2025
Auctim to Offer 7.3M+ Carats of Rough EmeraldsThe online auction house’s September sale will feature rough Brazilian emeralds of various qualities.
MajorsJul 29, 2025
Alexis Padis Re-Elected AGS Board President She’ll lead an executive committee consisting of President-Elect Bryan Moeller, Mitchell Clark, Bill Farmer, and Larry Rickert.
Policies & IssuesJul 28, 2025
U.S.-EU Come to Agreement on Tariffs Announced Sunday, the deal will set the tax on goods imported into the United States from the European Union at 15 percent.
CollectionsJul 28, 2025
Nanis Brings a New Palette to ‘Ipanema’A new edition of the Italian brand’s “Ipanema” collection has debuted with gemstones that evoke Brazil’s breathtaking views.
MajorsJul 28, 2025
The 1916 Company Partners with ‘Shark Tank’ Star’s Watch Insurance PlatformThe retailer will refer its customers to WonderCare, founded by venture capitalist and watch collector Kevin O’Leary.
IndependentsJul 28, 2025
Sissy’s Log Cabin to Open Flagship in Arkansas The jeweler’s largest store yet is set to open in Little Rock next fall.
CollectionsJul 25, 2025
Piece of the Week: Jemma Wynne’s ‘Forme’ NecklaceAnne Hathaway was seen wearing the toggle necklace three times while filming scenes for “The Devil Wears Prada 2.”
Events & AwardsJul 25, 2025
Pre-Registration Open for September Hong Kong ShowJewellery & Gem World Hong Kong is scheduled for Sept. 15 to 21, and buyer pre-registration will be available until Sept. 7.
FinancialsJul 25, 2025
LVMH Sales Slip in H1 Amid ‘Prevailing Uncertainties’Renovations at Tiffany & Co. stores ate into profits in the company’s watch and jewelry division.
Events & AwardsJul 24, 2025
2 Retailers to Receive 2026 Gem Award for Lifetime AchievementMark and Candy Udell of London Jewelers will receive the honor at the 24th annual Gem Awards next March.
SourcingJul 24, 2025
De Beers Sees Diamond Production Sink 36% in Q2 While struggles continue at the mining and trading end of the pipeline, consumer demand for diamond jewelry is holding steady.
CollectionsJul 24, 2025
Francesca Villa Adds Dimension to Her Intaglio CharactersThe “Fantasia” jewelry collection turns the intaglio animals from her “Close Encounters” collection into 3D characters.
WatchesJul 24, 2025
Breitling Drops Super Bowl Watch Honoring the Philadelphia Eagles The special Classic Avi Chronograph 42 with an Eagles-green dial is limited to 59 pieces, a nod to the Super Bowl Philadelphia just won.
