Dive Brief:

• Macy’s Wednesday reported that Q3 same-store sales fell 1.4%, while some analysts had expected closer to an increase of 1.9%. Still, profit rose 30% thanks to lower expenses.

• While the retailer lowered its full-year guidance and CFO Karen Hoguet said it was “not immune” to weak consumer spending, especially during back-to-school, the retailer also said it is optimistic about Q4 thanks to the holidays.

• Macy’s said that its revamped loyalty program, shipping options, in-store pickup for online orders, improved merchandising store by store, and other logistics will give it an advantage at the holidays.

Dive Insight:

Macy’s has been working on developing and improving the programs mentioned in its report Wednesday. And if gas prices stay low and the economy stays steady, consumers may indeed boost their spending enough to make up for a lackluster back-to-school season and other sales. 

The holidays will be a test of how enduring or deep the so-called "retail funk" is, which is the ailment Macy's is essentially referencing in its report.