Fine Jewelry a Bright Spot for Macy's

RAPAPORT... Macy's noted strong sales of higher-end jewelry during theholiday season, though lower-priced items were weaker. Fine jewelry was one of seven categories the retailerhighlighted for their positive performances during November and December.However, sales of fashion jewelry and fashion watches missed expectations, itadded in the holiday-sales update Thursday. The department store lowered its full-year outlook for group salesand earnings as growth was slower than it had anticipated. Macy'scomparable-store sales increased 0.7% at the stores it owns, and rose 1.1% atall branches, including licensed ones. Its stock fell 19% in early tradingThursday. "The holiday season began strong, particularly during BlackFriday and the following Cyber Week, but weakened in the mid-December periodand did not return to expected patterns until the week of Christmas,"said Macy's chairman and CEO Jeff Gennette. Image: A Macy's store in Rancho Cucamonga, California. (Macy's)