Macy’s Reports Drop in Quarterly Profit, Names New Digital Chief — Retail Bum

Macy’s saw a quarterly profit drop as the retailer relied on heavy discounting to clear out its spring and summer merchandise.

Still, the company’s stock, which has so far lost 30% of its value since the start of the year, rose by 5.9% to $15.6 in premarket trading as it exceeded net sales estimates.

The retailer reported $5.13 billion in net sales, higher than market estimates of $5.09 billion. However, its adjusted net income for the quarter that ended July 31 came out to $71 million or 26 cents per share, lower than the $277 million or $1 per share it reported a year ago.

The New York-based retailer has recently been seeing a sharp decline in demand from middle-income shoppers, who are cutting back on buying apparel and accessories to instead pay for food and other services, Reuters reported.

Just last week, the retailer announced the appointment of Max Magni as its new chief customer and digital officer. In his role, Magni will lead customer-focused strategies and the company’s digital business, overseeing eCommerce sites, marketplace, mobile apps, and gift registry programs.

Magni brings over 20 years of experience working for McKinsey & Company, where he worked with brands in the apparel, beauty, consumer…