Macy’s Eyes Online Sales in China to Boost Growth

It was a tough quarter for Macy's (M) as the retailer posted disappointing sales numbers on Wednesday. Company Chairman and CEO Terry Lundgren blamed the strong dollar for slowing tourist sales. The company cut its outlook for the year from a 1 percent increase to a 1 percent decline. Macy's reported earnings of $0.64 a share, down from last year's $0.80 a share. Revenue also dropped, coming in at $6.1 billion and missing estimates of $6.23 billion. The retailer is now looking east after announcing a joint venture in Hong Kong to develop an online retail branch in China. Macy's also announced a new agreement to sell some of its Brooklyn property. The money raised will be used to renovate the Macy's store on Fulton Street in downtown Brooklyn. Earlier this year activist investor Jeffrey Smith called upon Macy's to divide its real estate holding from its operating business. The stock was down almost 4 percent on the earnings news.