Macy’s Inc. (M), the largest U.S. department-store chain, will gain from consumers that are less burdened by energy costs, Chief Executive OfficerTerry Lundgren said.
“We expect to benefit from the lower gas prices,” Lundgren said in an interview with Fox News’ Maria Bartiromo today. “We have much higher expectations for the fourth quarter.”
Sales at stores open at least a year declined 1.4 percent last quarter as the retailer struggled to get people in the door. The Cincinnati-based retailer relied on trimming expenses to post a 23 percent increase in net income for the quarter, according to a Nov. 12 statement.
Plunging gas prices are leaving U.S. consumers with more money to spend. The average price of a gallon of regular unleaded gas in the U.S. was $2.82 at the end of last week, down about 14 percent from a year earlier, according to AAA, the motoring association.
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Macy’s rose less than 1 percent on Nov. 21, the latest trading day. The stock has climbed 19 percent so far this year, compared with a 12 percent increase in the Standard & Poor’s 500 Index.
Date: November 23, 2014