Department store Macy’s Inc. and clothing maker Liz Claiborne reported wider losses for the first quarter Wednesday because of charges tied to changes they are making as they try to streamline and respond to how people are shopping in the recession.
Though both companies said business isn’t getting worse, their CEOs acknowledged that spending is likely to remain weak throughout the year. The financial results came as the Commerce Department said retail sales fell for a second straight month in April, raising new concerns about consumers’ willingness to spend even after some hopeful signs.
A significant rebound in spending is integral for ending the recession. The Commerce Department said retail sales fell 0.4 percent last month, much worse than the flat reading economists expected. That followed a 1.3 percent drop in March that was worse than first estimated.
Demand at department stores and general merchandise stores fell 0.1 percent and sales at specialty clothing stores dropped 0.5 percent. Macy’s posted a loss of $88 million, or 21 cents per share, for the period ended May 2. That compares with a loss of $59 million, or 14 cents per share, a year earlier.
Liz Claiborne, a supplier to department stores such as Macy’s, posted a loss of $91.4 million, or 97 cents per share, in the first quarter. That compares with a loss of $31 million, or 33 cents per share, a year ago.
by the associated press
Though both companies said business isn’t getting worse, their CEOs acknowledged that spending is likely to remain weak throughout the year. The financial results came as the Commerce Department said retail sales fell for a second straight month in April, raising new concerns about consumers’ willingness to spend even after some hopeful signs.
A significant rebound in spending is integral for ending the recession. The Commerce Department said retail sales fell 0.4 percent last month, much worse than the flat reading economists expected. That followed a 1.3 percent drop in March that was worse than first estimated.
Demand at department stores and general merchandise stores fell 0.1 percent and sales at specialty clothing stores dropped 0.5 percent. Macy’s posted a loss of $88 million, or 21 cents per share, for the period ended May 2. That compares with a loss of $59 million, or 14 cents per share, a year earlier.
Liz Claiborne, a supplier to department stores such as Macy’s, posted a loss of $91.4 million, or 97 cents per share, in the first quarter. That compares with a loss of $31 million, or 33 cents per share, a year ago.
by the associated press
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