Americans are finally returning to Macy's to shop for, yes, clothes

Washington

AMERICANS are buying more clothing, shoes and jewellery at Macy's, helping turn around the retailer's fortunes. The department store chain on Tuesday said a renewed emphasis on apparel helped bring in more shoppers and persuaded them to spend more. Sales at stores open at least one year rose 1.4 per cent in the most recent quarter, marking the first period of sales growth in more than three years.

"Our customers have responded well to the increased focus on fashion and enhanced quality of the merchandise," Jeffrey Gennette, chief executive of Macy's, said in a call with analysts on Tuesday. "The consumer was out spending, and that was great." Macy's has for years been dogged by many of the same issues facing its peers: changing shopping habits, excess inventory and a culture of deep discounts and promotions. It also faces increasing competition from Amazon.com, which is projected to surpass Macy's this year as the country's largest apparel seller. But on Tuesday, there were signs that the retailer's turnaround efforts were working. Sales of women's dresses, tailored men's clothing, winter coats and fragrances all rose during the crucial holiday season, helping to lift fourth-quarter sales by 1.8 per cent to US$8.67 billion. Profits nearly tripled to US$1.3 billion, or US$4.31 a share, from US$472 million, or US$1.54 a share, a year earlier. Shares of Macy's rose nearly 12 per cent Tuesday morning and were up 3.5 per cent at the end of the trading day.