AuctionsDec 19, 2025
Jean Schlumberger’s ‘African Cat’ Is Purr-Fection Need a gift for the cat lover who has everything? Look no further than our latest Piece of the Week.
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
AuctionsDec 18, 2025
Audemars Piguet Reclaims Historic Pocket Watch at AuctionIt purchased the “Grosse Pièce,” an ultra-complicated Audemars Piguet pocket watch from the ‘20s, for a record-breaking price at Sotheby’s.
EditorsDec 18, 2025
Terry Chandler Looks Back on 40 Years of Opportunity, Change, and FriendsChandler got his start at Michelson Jewelers and has served as DCA president and CEO since 2001. He will retire at the end of the month.
Brought to you by
Impacting Tomorrow TodayHow Jewelers of America’s 20 Under 40 are leading to ensure a brighter future for the jewelry industry.
Supplier BulletinDec 18, 2025
Cell Jammers Are Targeting Your Business. Here's How to Beat ThemSponsored by Digital Monitoring Products
Weekly QuizDec 18, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
WatchesDec 18, 2025
Bob’s Watches to Open Store in New York’s JFK AirportThe boutique is slated to open this week inside Terminal 8, offering pre-owned Rolex watches and more to international travelers.
Lab-GrownDec 18, 2025
Kira Jewels Debuts Custom Lab-Grown Diamond Jewelry ServiceThe lab-grown diamond grower now offers custom engagement and fashion jewelry through its Kira Custom Lab Jewelry service.
Brought to you by
Roseco Releases New Full-Line CatalogRoseco’s 704-page catalog showcases new lab-grown diamonds, findings, tools & more—available in print or interactive digital editions.
CrimeDec 17, 2025
Man Pleads Not Guilty to Swallowing Fabergé PendantThe special-edition egg pendant ingested in a New Zealand jewelry store was recovered after a six-day wait.
EditorsDec 17, 2025
2025 Jewelry Rewind: The Best Piece of the Week PicksAssociate Editor Natalie Francisco plays favorites with Piece of the Week, selecting a standout piece of jewelry from each month of 2025.
CollectionsDec 17, 2025
Lucy Hale Stars in Jacquie Aiche’s Holiday CampaignThe “Love and Desire” campaign is inspired by the magic that follows when one’s heart leads the way, said the brand.
GradingDec 17, 2025
SSEF Announces 2025 Scholarship WinnersTwo awardees will receive free tuition for an educational course at the Swiss lab, with flights and lodging included.
AuctionsDec 16, 2025
Suzanne Belperron, JAR Shine in Sotheby’s First Auctions at New HQSotheby’s held its first two jewelry sales at the Breuer building last week, and they totaled nearly $44 million.
Events & AwardsDec 16, 2025
TJS Now Accepting Scholarship Applications for 2026Winners will receive free registration and lodging for its fourth annual event in Detroit.
ColumnistsDec 16, 2025
Beyond Unboxing: Creative Reveals to Drive Reach and EngagementHere are six ideas for making more engaging content for Instagram Reels and TikTok, courtesy of Duvall O’Steen and Jen Cullen Williams.
Events & AwardsDec 16, 2025
Diamonds Do Good Names 2026 Award RecipientsThe honorees include a notable jewelry brand, an industry veteran, and an independent retailer.
CrimeDec 15, 2025
Men Receive Life Sentences in Home Invasion Murder of Jeweler Carlos Jose Hernandez and Joshua Zuazo were sentenced to life without the possibility of parole in the 2024 murder of Hussein “Sam” Murray.
Policies & IssuesDec 15, 2025
Sara Yood Named Co-Chair of RJC Standards CommitteeYood will serve alongside Eduard Stefanescu, the sustainability manager for C.Hafner, a precious metals refiner in Germany.
IndependentsDec 15, 2025
M.S. Rau to Open Store in AspenThe New Orleans jeweler is also hosting pop-up jewelry boutiques in New York City and Dallas.
AuctionsDec 12, 2025
13.54-Carat Paraíba Tourmaline Sets Records at Christie’sSet in a Tiffany & Co. necklace, it sold for $4.2 million, the highest price and price per carat paid for a Paraíba tourmaline at auction.
CollectionsDec 12, 2025
Piece of the Week: Oscar Heyman’s Sphene RingTake luxury gifting to new heights this holiday season with the jeweler’s showstopping 12-carat sphene ring.
Events & AwardsDec 12, 2025
IGI Jewelry Design Contest Now Accepting SubmissionsThis year's theme is “Unveiling the Depths of the Ocean.”
TrendsDec 11, 2025
Pinterest 2026 Trend Report: Brooches, Bold Gold, Cool BlueIn its annual report, Pinterest noted an increase in searches for brooches, heirloom jewelry, and ‘80s luxury.
GradingDec 11, 2025
GIA to Offer Origin Determination for 3 More GemstonesStarting Jan. 1, customers can request the service for opal, peridot, and demantoid garnet.
IndependentsDec 11, 2025
Look Inside Day’s Jewelers’ Ninth StoreThe 111-year-old retailer celebrated the opening of its new location in Salem, New Hampshire, which is its third store in the state.
MajorsDec 11, 2025
Americas Gold Releases New Gold Chain CatalogThe new catalog features its most popular chains as well as new styles.
AuctionsDec 10, 2025
Francis Ford Coppola’s Watch Sells for $10.8MThe filmmaker’s personal F.P. Journe “FFC” prototype was the star of Phillips’ recent record-setting watch auction in New York.
