Macy's Inc. (M – Analyst Report) again disappointed investors by posting lower-than-expected results for the second straight quarter in fiscal 2015 that compelled management to lower sales projection. The second quarter earnings of 64 cents a share fell short of the Zacks Consensus Estimate of 75 cents, and declined 20% from 80 cents delivered in the year-ago quarter.

Subdued consumer demand, port disruption and lower spending by international tourists due to stronger dollar dampened the performance of this Zacks Rank #4 (Sell) company. However, management remained optimistic of improving the company's performance in the second half of the year.

This Cincinnati, OH-based company generated net sales of $6,104 million that decreased 2.6% year over year, and also came below the Zacks Consensus Estimate of $6,237.8 million. Comparable sales on an owned plus licensed basis dropped 1.5% during the quarter, while on an owned basis, comparable-store sales decreased 2.1%.

Management had earlier highlighted that the company has undertaken initiatives – Macy's Backstage off-price business, the launch of new Plenti loyalty rewards program, the introduction of the new Thalia Sodi private brand, and expansion of Bluemercury – to bring itself back on the growth trajectory. The company has been taking steps such as omnichannel integration, development of online order fulfillment centers, Buy Online Pickup in Store” initiative and bringing in additional markets under the ambit of same-day delivery service.

Moreover, concurrent with the release Macy's also announced that it has entered into a joint venture with Fung Retailing Limited – one of the leading retailers in Greater China – in an attempt to tap retailing opportunities in the fast-growing Chinese markets. Holding a 65% stake in the joint venture to be called Macy's China Limited, Macy's will launch online flagship store on Alibaba Group's Tmall Global to commence sales in late 2015.