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Macy's executive blames Netflix for slow sales

Mar 25, 2015, 19:41 IST

Macy's CFO Karen Hoguet is blaming Netflix for his brand's slow sales.

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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 previously 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.

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"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.

Macy's plans to lure in millennials by focusing on wedding registries for when they get married.

This investment could let the brand "keep him and her after they get married and grow up," Hoguet said.

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