Net income dove by almost 55% to $108mn from $239mn in the year-ago quarter. The industry’s changed inventory situation, as well as inflation and the increasingly promotional retail landscape, explains why Macy’s and other big retailers, including Kohl’s and Target, saw third-quarter declines and witnessed a slowdown in spending last month. Macy’s reported total sales in the three-month period ended Oct. 29 declined 3.9% to $5.23bn from $5.44bn a year-ago, but inched up 1.1% from Q3 in 2019. Comparable Q3 sales this year were down 2.7% on an owned-plus-licensed basis. Inventories were up 4% versus 2021, and down 12% from 2019 levels, reflecting ongoing planning and supply chain discipline considering the widespread reports of inventory gluts this year. Sleepwear, casual sportswear, active and soft home — categories that excelled during the pandemic — are down double digits. Inside 35 Macy’s department stores across the country, 30,000 sq ft (2900ms) mini distribution centres have been opened. The mini DCs, will mitigate labour costs helping profits, and provide faster deliveries. Macy’s reaffirmed its forecast for $24.34bn in annual sales this year, and raised its earnings expectations slightly. By division, Macy’s comparable sales last quarter were down 4.4% on an owned basis and down 4% on an owned-plus-licensed basis. Bloomingdale’s comparable sales on an owned basis were up 5.3%, and on an owned-plus-licensed basis were up 4.1%. Bluemercury comparable sales were up 14% on an owned and owned-plus-licensed basis. Gross margin for the quarter was 38.7%, down from 41% in Q3 of 2021.