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    Messi Stores Cut Annual Performance Expectations

    2014/8/20 13:42:00 10

    Messi Department StoresDownPerformance Expectations

    A few days ago, US retail giant Messi general store released its two quarter earnings report. The data show that the company's two quarter profit increased by 4% over the same period last year. Although it has risen slightly, its performance is still lower than that expected by Wall Street.

    It is worth noting that, while announces quarterly reports, Messi stores lowered their annual sales expectations, which will also have a certain impact on the development of the US retail industry this year.

    Messi's Department announced its two quarter earnings last week, and its profit rose 4 percentage points year-on-year, showing a slow growth trend.

    However, Messi's department also lowered its annual sales forecast, saying it would save losses in the first quarter.

    After the issuance of the earnings report, the stock price of Messi department store fell by nearly 5 percentage points.

    Messi's two quarter

    net income

    It increased to $292 million, or 80 cents per share, compared with $281 million last year and 72 cents per share.

    This performance is not as good as analysts' expectations of 86 cents per share.

    Messi's department store said the company's revenue in the two quarter was $6 billion 270 million, compared with $6 billion 70 million in the same period last year, an increase of 3.3%, but it was also less than the 6 billion 290 million US dollars expected by Wall Street analysts.

    Sales of Messi's department store rose 4 percentage points, which also covers sales to third party businesses.

    But now Messi stores will reduce the previous 2.5%-3%'s same store sales forecast to 1.5%-2%.

    As a retail giant emerging from the US economic recovery, Messi is also the first major retailer to report its two quarter financial situation in the near future. Every move in the next few months will help us understand the trend of the US consumer market.

    And a lot of attention.

    Middle class

    Like consumer retailers, Messi stores face severe economic challenges.

    When the employment environment improves and the housing market starts to rebound, consumers' income can no longer strongly support them to invest more in shopping.

    Messi Lundgren CEO Terry Lundgren said in a statement that many consumers will not invest more money in the uncertain economic environment.

    Messi stores said they were satisfied with the beginning of the homing season, that is, from mid July to mid September, the consumption situation began to improve.

    But in order to attract more customers to come shopping, Messi store has to continue to take discount sales promotion.

      

    Macy's

    CFO Karen Hoguet said that due to the gradual improvement of the economic environment, many consumers were no longer subjected to big environmental impact, which affected Messi department store's performance expectations.

    It is worth noting that Messi department store operates a department store called DELL, which now has 36 branches in the United States, which focus on meeting the needs of high-end consumers.

    At present, DELL has benefited greatly from the local market, and is committed to eliminating the consumption gap between physical stores and online shopping.

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