Shares of Macy's, Inc. M have declined almost 13% following its second-quarter fiscal 2015 results. This department store retailer disappointed investors with its performance, reporting lower-than-expected results for the second straight quarter in fiscal 2015. This also compelled management to lower its sales projection for the fiscal.

Dismal Performance

The company’s second-quarter earnings of 64 cents a share fell short of the Zacks Consensus Estimate of 75 cents and declined 20% year over year. Subdued consumer demand, port disruption and lower spending by international tourists due to a stronger dollar dampened the company’s performance. However, management remains optimistic about an improvement in results in the latter half of the fiscal year.

A look at Macy’s top-line performance unveils that the company recorded lower-than-expected sales in the last seven quarters. In the trailing seven quarters, the company’s sales missed the Zacks Consensus Estimate by an average of 1.4%. In the recently concluded quarter, Macy’s generated net sales of $6,104 million that fell 2.6% year over year and also came in below the Zacks Consensus Estimate of $6,237.8 million. The company now expects total sales to decline 1% in fiscal 2015, as against a 1% increase projected earlier.

Macy’s Endeavors Draw Attention

This Cincinnati, OH-based company is trying hard to recover from the second-quarter debacle that led analysts to adopt a cautious stance on the stock. These efforts include Macy’s Backstage off-price business, the launch of the new Plenti loyalty rewards program, the introduction of the new Thalia Sodi private brand, and the expansion of Bluemercury. Although these appear to be steps taken in the right direction, it will take time for the company to reap benefits from the same.

The company has been widening its operations via deals and collaborations to increase its customer base. It inked an agreement with The Men’s Wearhouse, Inc. to open licensed tuxedo rental shops within its stores. 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.

Zacks Rank

Macy’s currently carries a Zacks Rank #3 (Hold). However, for the time being, investors can focus on better-ranked retail stocks that appear promising. These include Foot Locker, Inc. FL, sporting a Zacks Rank #1 (Strong Buy), Citi Trends Inc. CTRN and American Eagle Outfitters Inc. AEO, both carrying a Zacks Rank #2 (Buy).

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