Merchandise inventories were virtually unchanged from a year earlier, helping Macy's gross margins rise 0.4 percentage points, to 41.9 percent.
The company said Thursday that it intended to further reduce domestic merchandise inventories to better align them with expected sales.
Inventories Are On The Rise When a company is growing its sales at a fast 10% clip, logic dictates that its merchandise inventories should be growing at about the same pace.
But officials from the record retailing industry say they bring a great deal of value to the market by creating a physical conduit between the recording industry and consumers and by applying expertise in merchandising, inventory and marketing.
Andale will also offer fee-based services that help sellers with automated product merchandising, inventory and financial management as well as customer service.
It said the company should make changes to its merchandising, inventory management and cost-control efforts as well as take steps to gain more from its real estate portfolio.
"By filing for bankruptcy protection and liquidating just before Christmas it will be able to clear out its merchandise and inventory during the busiest shopping time of the year when all customers will be looking for a bargain".
Calls last that long, she said, because they combine new product training, merchandising tips, inventory audits and informal socializing.
The increase from the rebuilding of merchandise stock is, however, fading and a small contribution from inventories contributed to a sharp slowdown in growth in the second quarter.
Companies had trouble reducing stockpiles of unsold merchandise, with inventories unchanged in April.
