Department store chain Macy’s Inc reported a smaller-than-expected decline in quarterly sales as the company’s heavy promotional activity attracted shoppers to its stores.
The company reported a 1.7 percent drop in comparable sales for the quarter ended August 4, compared with analysts’ average estimate of a 2.4 percent decline, according to Thomson Reuters I/B/E/S.
The surprise result is a reversal from other department store chains such as Kohl’s Corp and Nordstrom Inc , which both reported bigger-than-expected declines in sales last month.
Shares of Macy’s rose 2.2 percent in premarket trading.
Total sales fell 2.1 percent to $5.57 billion in the second quarter, ended August 4, slightly above analysts’ average estimate of $5.55 billion.
The company said it expects comparable sales to fall between 1 percent and 2 percent in the current quarter.
The retailer said it plans to close 15 stores in addition to 100 store closures the company previously announced.
CFO Paula Price said in a statement that the company’s focus on improving its digital business helped to offset some of the weakness in its brick-and-mortar stores.
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