While Macy’s Inc. sales beat expectations, a sharp profit decline in Q2 has put the retailer in a state of “urgency” to drive improvements.

Net income took a 96% nose-dive to $9 million in the second quarter, with earnings per share dropping to 3 cents from 64 cents in the year-ago quarter.

Sales beat plan, falling 3.9% to $5.86 billion. Comps were down 2.0% on an owned-plus-licensed basis and fell 2.6% on an owned basis.

These results, the company noted, were largely due to the closing of 41 underperforming Macy’s stores in fiscal 2015.

But Macy’s generated healthier sales in the home store, with sales increases in home textiles categories and private brand home collections, cfo Karen Hoguet said during the company’s quarterly earnings call today.

Several other categories showed year-over-year improvements, including apparel and shoes.

In addition, Macy’s inaugural “Black Friday in July” event was “a terrific success which drove record store and online sales for a mid-year period,” said chairman and ceo Terry Lundgren.

Year to date, sales fell 5.7% to $11.63 billion , and comps were down 3.8% on an owned plus licensed basis and declined 4.4% on an owned basis.

“Our sales strengthened month-by-month throughout the second quarter,” Lundgren continued. “This trend improvement gives us confidence in our plans for the back half of the year, and in our strategic planning for improvements to our business model going forward.”

Earlier today, the company reported plans to shutter almost 15% - or about 100 - of its stores, most of them by the first quarter to 2017.

“We can benefit from right-sizing the company,” said Hoguet. “These closing will positively impact our return on invested capital and help us accelerate our growth….closing stores is not something we take lightly, but will let us focus more on better stores and digital business.”

She added that Macy’s will not close stores in any of its top markets.

(Source: Home Textiles Today)