Jewelry Gives Shining Performance at Macy's

RAPAPORT... Jewelry was one of the top-selling categories at Macy's during the third fiscal quarter, even as overall sales declined at the department-store chain.Group revenue dropped 23% to $3.99 billion in the three months ending October 31, while comparable-store sales - at owned and licensed shops open for at least a year - fell 20%, the retailer reported last week. However, sales rose at the businesses that encompass its Polaris focus strategy - core divisions that will be used to drive growth - which include fine jewelry, beauty, furniture and its Backstage off-price brand."I'm encouraged that all four of our Polaris focus categories...performed very well in the quarter and outpaced the business," Macy's CEO Jeff Gennette said in an earnings call transcribed by Seeking Alpha. "Those are getting excellent sell-throughs, even with a business that has been challenged. The luxury trend continues across Macy's and Bloomingdale's as customers shift their spending from experiences to products."Jewelry sales have also benefited from consumers' move toward items they can enjoy at home amid the pandemic, he observed. "Several of these categories, including home furnishings, jewelry and fragrance, have generated double-digit sales growth compared to last year."The early start to holiday shopping helped the company achieve better-than-expected results in most divisions. Macy's intends to focus on the Polaris groups during the season, it said. It has also beefed up its digital offering to decrease the flow of traffic in stores and enable consumers to shop in the most comfortable way. The company will not provide a holiday sales update in January, it noted. Those figures will be included with the outlook for 2021 when Macy's releases its fourth-quarter results on February 23.Image: The jewelry department at Macy's New York store. (Shutterstock)