Macy’s CFO Karen Hoguet is blaming Netflix for her brand’s slow sales. Millennials have a tendency to spend money on electronics and online subscriptions rather than apparel, Hoguet said at a recent conference covered by MarketWatch.
“I think part of that is the customers are buying other things, whether the electronics, cable services, Netflix, whatever,” Hoguet said. The brand is struggling to attract a younger audience. Sales grew 1.4% last quarter, less than analysts had predicted.
While some products, like cosmetics, are selling well with the younger set, Hoguet told analysts that consumers today have priorities other than clothing and housewares. “Shoppers are spending more of their disposable dollars on categories we don’t sell, like cars, healthcare, electronics, and home improvement,” Hoguet said in a call with investors.
This chart from Morgan Stanley shows that Americans are spending less on apparel and footwear.